Large-scale whole genome sequencing (WGS) for disease understanding, drug development and genomic medicine

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Large-scale whole genome sequencing (WGS) for disease understanding, drug development and genomic medicine Rade Drmanac, Ph.D., Co-Founder and Chief Scientific Officer IOM Workshop, March 2012

Safe Harbor Summary This presentation contains forward-looking statements about Complete Genomics, Inc. Our actual results could differ materially from those discussed due to a number of factors, including but limited to our ability to raise additional equity and debt financing on favorable terms, the ability of our technology to achieve and sustain sufficient market acceptance, our ability to scale and commercialize our genome sequencing service, our ability to hire a sufficient number of qualified individuals to run our service facilities, and our ability to manage our rapid growth. Additional risks and uncertainties are described more fully in our preliminary prospectus and registration statement on Form S-1, as amended, filed with the Securities and Exchange Commission. We are providing this information as of the date of this presentation and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. 2

Why is Whole Genome Sequencing Critical? Almost all genetic variants have contextual expression and meaning dependent on other genomic sequences and environment interacting through complex decision making regulatory networks Accurate interpretation and effective use of contextual genetic instructions is impossible by partial access to our genetic code (e.g. targeted genes) Each person has 10,000-100,000 family-specific genetic variants + ~100 de novo personal variants in combination with a few million population variants No comprehensive predefined genetic variant chips can be designed WGS reveals the ultimate genetic level providing complete genetic information - To gain maximal benefits allowed by genetics; allows standardization 3

Genomics Opportunities in Drug Discovery and Development: Safety, Efficacy, Success Rate Translational Medicine (active) Pre-clinical Biomarker Discovery Disease Definition Clinical Trials (need a push) Phase I Focus is on safety in healthy individuals (except oncology) Phase II Mid-size, multi-end-points (targeting to improved efficacy) Phase III Large studies, carefully designed end-points Phase IV Monitoring, Indication Expansion http://insidebioia.files.wordpress.com/2011/02/bio-ceo-biomedtracker-bio-studyhandout-final-2-15-2011.pdf 4

How Many Human Genomes Do We Need to Sequence? Number of Sequenced Genomes 1,000,000s Impact Understanding molecular and genetic bases of a) thousands of human diseases b) all other phenotypes Developing better targeted drugs and other therapies including for disease prevention Developing personal genome interpretation software 1,000,000,000s Genomics-based personalized medicine -Improving health and disease treatments Genomics-based personalized way of living 5

Industrialization of Whole Human Genome Sequencing Novel Sequencing Technology Designed and Optimized for Massively Parallel (nanoarray based) Whole Human Genome Sequencing for Quality, Cost and Scale (Science Jan 1, 2010) Innovative Business Model A Turnkey Service Enabling Customers to Outsource WGS Samples In, Research and Clinic Ready Data Out >3,000 genomes sequenced in 2011 >10,000 genomes expected in 2012 (just 24 instruments) 6

Easy to Use Informative Lists of Sequence Variants -Every base of the genome is marked as reference, variant (SNPs, indels, multi-base changes, SNVs, SVs) or no-call -A highly informative confidence score for each variant to balance sensitivity vs. specificity >locus ploidy haplotype chromosome begin end vartype reference alleleseq totalscore haplink xref 974 2 all chr1 5099 5126 no-call =? 975 2 all chr1 5126 5146 ref = = 976 2 1 chr1 5145 5146 snp G T 87 dbsnp:806 976 2 2 chr1 5145 5146 snp G T 58 dbsnp:806 977 2 all chr1 5146 5212 ref = = 978 2 1 chr1 5212 5215 ref GTC GTC 36 978 2 2 chr1 5212 5215 no-call-rc GTC?T? -Annotations of variations in known protein coding (<2% of genome) and regulatory (more then 10% of genome) gene sequences index locus Hapl. Chr. begin end Var Type Ref. call xref Gene Id mrna Acc 66 1269 1 chr1 59315 59316 snp G A dbsnp:rs2 NM_0010 79501 854682 05484.1 66 1269 2 chr1 59315 59316 ref G G 79501 NM_0010 05484.1 67 1271 1 chr1 59373 59374 snp A G dbsnp:rs2 NM_0010 79501 691305 05484.1 67 1271 2 chr1 59373 59374 snp A G dbsnp:rs2 NM_0010 79501 691305 05484.1 proteina cc NP_0010 05484.1 NP_0010 05484.1 NP_0010 05484.1 NP_0010 05484.1 Orient. Exon Cat. exon + EXON 1 + EXON 1 aa Category SYNONYM OUS NO- CHANGE Nucl. Pos Prot. Pos Aa Annot aa Call aa Ref 362 120 K K K 362 120 K K K + EXON 1 MISSENSE 420 140 T A T + EXON 1 MISSENSE 420 140 T A T 7

Percentage of Genomes Percentage of Genomes High rates of High-Confidence Base Calls Standard Coverage High Coverage Non-Tumor Tumor Non-Tumor Tumor Median Genome-wide Call Rate 96.6% 96.5% 97.4% 97.3% Median Exome Only Call Rate 97.3% 97.0% 97.9% 97.7% Standard Coverage Call Rates High Coverage Call Rates 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Call Rates Call Rates Data for October, November, & December 2011 8

Relative Score in Replicate A Sequencing Accuracy in Technical Replicates: Using Variant Confidence Measures All Sites Called Hom-Ref in A and SNP in B Relative Score in Replicate B Complete Data Novel False+ Somatic SNPs = 7,628 (1.10) = 4,258 (2.0 development pipeline) Each Such Error Must Be Either: - False Positive in Replicate B, or - False Negative in Replicate A Inside Red Lines Weakest Somatic SNPs Removed = 5% of True+ (concordant calls) = 91% of Errors (discordant calls) = 366 Remaining Errors = 1 error per 7 called megabases 10x Improvement in Sensitivity/Specificity Trade-Off. Krishna Pant: NA12878 Replicate Data Analyzed Using Development Pipeline. 9

Rapid Continued Scaling of Human WGS Service Samples DNA Nanoarrays DNA Nanoarrays Data Data Genomes Our Capacity Expansion Up to 2000 genomes per month by end of 2012 (~800 now) Expected to have ~5x more powerful instruments in 2012/2013 Future: Instruments based on 15 fold faster CMOS cameras for sequencing millions of genomes per year 10

Diverse Base of 100+ Service Users Academic/ Government Medical Research Center BioPharma Translational Medicine/Clinical Research 11

Example WGS Applications Cancer Mendelian Diseases/ De Novo Mutations NCI: pediatric cancer (TARGET) (1,000 genomes) Genentech: Hepatitis B Virus (HBV) infection and HCC AMC (Amsterdam): Neuroblastoma (Nature 2012 paper; 174 genomes) ISB: Miller s Syndrome and disease modifiers (600 genomes) U of Arizona: Infantile Epileptic Encephalopathy Erasmus: Craniosynostosis Genomic Variation and Disease T2D-GENES: Type II Diabetes risk in families (700 genomes) Stanford: Genetic Determinants of Diabetes Risk Scripps Health: Wellderly study (1000 genomes) Translational Medicine Inova Health System: Pre-term Delivery Study (1,500 genomes) Mayo Clinic: Translational genomics for guiding patient care USTW: Hypercholesterolimia Scripps Health: Clinical Annotation of Novel Variants (Cypher) 12

Accurate WGS are Highly Informative Detailed Picture of Lung Cancer (Genentech) First Detailed Picture of Cancer Genome Mutations from Primary Non-Small Cell Lung Tumor 50,000 New Mutations Indicating Affected Pathways Finding: 8 Mutation per Day of Smoking Conclusion: Sequence Genome First Nature 4-21-10 Discovered Disease-Causing Gene (ISB) Miller Syndrome: Formerly Unknown Genetic Cause Sequenced 2 Parents and 2 Affected Children Found Causal (Confirmed) and 6 Other -/- Genes Conclusion: Sequence Genome First Science, 3-11-10 Diagnosed Perplexing Case (UTSW) 11-Month Old with LDL-C of 837 Blood Test Failed: Showed Required Protein Not Missing Sequencing Showed Protein Must Be Absent (2 Stop Codons; Confirmed); Protein in Blood from Mother s Milk Conclusion: Sequence Genome First HMG-Oxford, 8-30-10 13

WGS Provides Information with Life-saving Treatment Implications Clinical outcome and benefits: Though patient died, results identified a major risk for her children, who were informed and encouraged to seek genetic testing and counseling Identification of a Novel TP53 Cancer Susceptibility Mutation (7kb deletion) Through Whole-Genome Sequencing of a Patient With Therapy-Related AML Link, D.C. et al. JAMA. 2011;305(15):1568-1576. Use of Whole-Genome Sequencing to Diagnose a Cryptic bcr3 PML-RARA Fusion Oncogene Welch, J.S. et al. JAMA. 2011;305(15):1577-1584. Clinical outcome and benefits: Diagnosis and treatment plans were changed on the basis of the identified fusion gene in the course of 7 weeks and patient remains in remission 15 months after her presentation Whole-Genome Sequencing for Optimized Patient Management Bainbridge, M.N. et al. Sci. Transl. Med. 3, 87re3 (2011). Clinical outcome and benefits: Identified causal variants (compound mutations in the SPR gene) suggest taking serotonin precursor, 5-hydroxytryptophan, as treatment plan. Patients (paternal twins) are symptom free, one month after treatment. 14

Golden Age of Disease Research and Translational Medicine Expect up to 1 million human genomes sequenced in each of these areas: 1. Cancers (primary, metastatic, CTCs) 2. Kids and adults with rare and undiagnosed disease 3. Patients with frequent (chronic) diseases 4. Healthy adults (e.g. Wellderly, PGP, UK-BioBank, motivated individuals) for longitudinal studies, aging, impact of environment, preventive medicine 5. Natural or mutagenized or edited ips and other stem and stemlike cells for decoding tissue differentiation and aging (requires haplotyped genomes and complete transcriptomes/epigenomes) How quickly can this be done? 5 million genomes from 2012 to 2016? (0.1+0.3+1.0+1.6+2 million genomes each consecutive year) 15

Genomic Medicine New medicine based on a) knowing patient (and parental) genome sequence, and b) new genome-specific remedies -WGS as universal genetic test ; an economical way to use gene sequencing as a screening test without qualifications This is a predictive, personalized medicine for: Health improvement (long-term priority) Disease prevention Treatment improvement Improving health and reducing our unsustainable health care costs 16

Genomics and Future Progress in Drug Development Expected progress in genomics in the next 3-5 years: Exponential growth of WGS capabilities >1 million tests per year capacity ~100% accurate and complete (with haplotypes) Affordable/justifiable price for broad applications Easy lifelong storage of informative variant files (<1Gb/genome) Exponential understanding of how human genome works (i.e. how it controls tissue differentiation and functioning) Explosive development of sophisticated personal genome interpretation software (accurate and easy to use) Synergy with cancer, stem-cell and system biology 17

Genomics and Future Progress in Drug Development (Cont.) Impact on Drug Development Drug discovery and development standardized on WGS as complete and ultimate genetic information Drugs designed and clinically tested (with high success rate) for distinct fully characterized genomic states Only people with personal WGS enrolled (minimize risk, maximize efficacy) WGS integrated with complete transciptome and epigenome of relevant tissues for each subject WGS as a new foundation that integrates many existing building blocks Personal WGS subsumes many companion-diagnostic tests 18

Possibilities for Future Drugs and Treatments Drugs specific for distinct genome states (both efficacy and tolerance) Health maintenance drugs (preventing disease development; supplementing needs for some genome states) Genome defined age-specific supplementing Living healthier lives in accordance with our genomes Targeted genome-specific drug delivery (e.g. unique sequences of cancer genomes) Nucleic acid (genome-sequence) based drugs Cell/tissue therapies; editing genomes in patient s stem cells *Example: Difficulties in drug treatment of CF in spite of recent progress (Kalydeco form Vertex Pharma.); also, use WGS for healthier reproduction 19

Questions, Suggestions rdrmanac@completegenomics.com