8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): September 19, 2013

CANCER GENETICS, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-35817	04-3462475
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

201 Route 17 North 2nd Floor, Rutherford, New Jersey	07070
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (201) 528-9200

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

Cancer Genetics, Inc. intends, from time to time, to present and/or distribute to the investment community and utilize at various industry and other conferences a slide presentation. The slide presentation is accessible on our website at www.cancergenetics.com and is attached hereto as Exhibit 99.1. We undertake no obligation to update, supplement or amend the materials attached hereto as Exhibit 99.1.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by reference in such a filing.

Forward Looking Statements

This Current Report on Form 8-K, including Exhibit 99.1, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically preceded by words such as “believes,” “expects,” “anticipates,” “intends,” “will,” “may,” “should,” or similar expressions, although some forward-looking statements are expressed differently. Forward-looking statements represent the Company’s management’s judgment regarding future events. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, the Company can give no assurance that such expectations will prove to be correct. All statements other than statements of historical fact included in this Current Report on Form 8-K are forward-looking statements. The Company cannot guarantee the accuracy of the forward-looking statements, and you should be aware that the Company’s actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including the statements under “Risk Factors” contained in the Company’s reports filed with the Securities and Exchange Commission.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are filed with this Current Report on Form 8-K:

Exhibit No.	Description
99.1*	Investor Presentation, dated September 19, 2013

* Exhibit 99.1 is furnished as part of this Current Report on Form 8-K.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CANCER GENETICS, INC.
By:	/s/ Elizabeth A. Czerepak
Name:	Elizabeth A. Czerepak
Title:	Chief Financial Officer

Date: September 19, 2013

EX-99.1

E M P O W E R I N G

P E R S O N A L I Z E D

C A N C E R

T R E A T M E N T

CGIX

(NASDAQ)

September 19, 2013

Exhibit 99.1

2013 Cancer Genetics, Inc.  

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All statements pertaining to future financial and/or operating results, future growth in

research, technology, clinical development, and potential opportunities for Cancer

Genetics, Inc. (The Company) products and services, along with other statements about

the future expectations, beliefs, goals, plans, or prospects expressed by management

constitute forward-looking statements.

Any statements that are not historical fact (including, but not limited, to statements that

contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates")

should also be considered to be forward-looking statements.

Forward-looking statements involve risks and uncertainties, including, without limitation,

risks inherent in the development and/or commercialization of potential products,

uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain

future capital, and maintenance of intellectual property rights and other risks discussed in

the Company’s registration statement on Form S-1 and other reports filed with the

Securities

and

Exchange

Commission

which

is

available

for

review

at www.sec.gov.

Actual results may differ materially from the results anticipated in these forward-looking

statements and as such should be evaluated together with the many uncertainties that

affect the Company's business.

The Company disclaims any intent or obligation to update these forward-looking

statements.

Forward-Looking Statement

Hybrid business model providing proprietary genomic products, clinical

cancer testing and clinical trial services for biotechs and pharmas

Category continues to experience significant price-to-sales multiples and

premium acquisition valuations

Experienced management team, active board of directors, and committed,

industry-leading scientific advisors

Established multi-year track record of top-line growth with improving margins

Portfolio of commercially available, IP-protected, revenue-creating products:

microarrays, DNA panels and probes

Established collaborations and partnerships with world-class institutions

including J.V. with Mayo Clinic: OncoSpire Genomics

54% revenue growth first half 2013 over first half 2012

2013 Cancer Genetics, Inc.  

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Growth-Stage, Oncology-Focused,

Personalized-Diagnostics Company

2013 Cancer Genetics, Inc.  

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Personalize

therapeutic plan and

treatment options

DIAGNOSIS

PROGNOSIS

THERANOSIS

Our unique focus & approach supports the entire cancer care continuum

Assist in patient

outcome and disease

management

What drug(s) to give,

how much, and when?

What are my survival

prospects?

Do I have cancer and

what type?

Use genomics to

provide an accurate

and definitive typing

of the cancer

Gain newer, more accurate tools to assess a patient’s cancer and develop

an informed treatment plan

PHYSICIANS

PATIENTS

Receive faster and more accurate diagnoses, as well as more personalized

oncology care

PAYORS

Benefit from cost-savings when oncologists receive the right information the

first time, and from increased treatment effectiveness

PHARMA

See

high

value

in

personalized

medicine

–

and targeted therapeutics

require companion diagnostic tests

Molecular Diagnostics are Changing our Understanding of Cancer

While Providing New Tools to Diagnose & Treat Patients

Integrated Molecular Diagnostic Testing Brings Benefits Across the Entire Oncology Ecosystem

Phenotypic &

Physical Examination

Morphologic &

Pathological Analysis

Large & Multiple

Specimens Required

Significant Delays to

Treatment

Traditional Approach

Biomarkers and

Companion Diagnostics

Genomic Analysis &

Proprietary Algorithms

Reduced Size and

Number of Specimens

Our Approach: Personalized Medicine

Target For Tomorrow

25%

Integrating & Delivering Genomic Information About a Patient’s Cancer Can

Improve Care & Reduce Cost

Situation Today

Source: Clinical Trends in Molecular Medicine, Vol. 7, Issue 5

Success Rate

Target

Success

Rate

Improved Diagnoses &

Treatment Plans

100%

2013 Cancer Genetics, Inc.  

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CGI’s Mission is to Personalize and Improve the

Success Rate in Cancer Treatment

2013 Cancer Genetics, Inc.  

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PROPRIETARY PRODUCTS

CLINICAL SERVICES

BIOPHARMA PARTNERSHIPS

Proprietary molecular

diagnostics & FISH probes

Clinically validated

IP-protected

Sold globally

Probe manufacturing

leverages low-cost, high

scale facility in India

Differentiated and complete

disease-focused solutions

Superior turnaround times

World-class expertise in

genomics and cytogenetics

Serving community

hospitals and labs through

unique Expand Dx™

program

Biomarker and companion

diagnostic development

World-class genomics and

bioinformatics

Drug-specific and cancer-

specific assays

Comprehensive focus in

hematologic and urogenital

cancers

Suite of Products and Services Provides Multiple Growth Drivers and Value to

Multiple Parties: Clinical Community, Biopharma & Medtech

Unique, Scalable and Multifaceted Business Model

2013 Cancer Genetics, Inc.  

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Source: American Cancer Society

149,990

2013 Estimated New Cases

(U.S.)

Death Rate

36%

Hematological:

Lymphoma, Leukemia, M. Myeloma

376,310

2013 Estimated New Cases

(U.S.)

Death Rate 

16%

Urogenital:

Kidney, Bladder & Prostate

Gynecological:

Cervical, Endometrial & Ovarian

Ability to Impact Over 

610,000 New Lives

Annually in the U.S.

5 Products Launched in Target Segments

Our Target Markets in Oncology Testing Comprise

Over 610,000 New Lives Annually in the U.S.

84,140

2013 Estimated New Cases

(U.S.)

Death Rate

31%

FHACT™

-

Cervical*

FHACT™-

Head&Neck

UGenRA™

-

Cervical

UGenRA™

-

Endometrial

UroGenRA™

-

Kidney

UroGenRA™

-

Bladder

UroGenRA™-Prostate

MatBA

®

-

Chronic & Small Lymphocytic Leukemia

MatBA

®

-

Diffuse Large B-Cell Lymphoma

MatBA

®

-

Mantle Cell Lymphoma

MatBA

®

-

FL

MatBA

®

-

MM

Research &

Discovery

Clinical

Development

Commercial

Development

Launch &

Market Entry

Clinical Collaboration &

Validation Partners

UGenRA™

-

Ovarian

* -

Launched Outside U.S. As A Product

5 Proprietary Diagnostic Products

Commercially Launched & In Market

2013 Cancer Genetics, Inc.  

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Source: Genzyme & Nature

Source: National Cancer Institute, National Center for Health

Statistics, SEER Dataset of Incidence & Mortality, FDA

Identified Leukemia & Lymphoma Subtypes

Incidence & Survival Rates for NHLs

(US Only, per 100,000)

Genomics-Based

Tests

like

MatBA

®

are

Critical

and

Improve

the Management and Cost of Hematologic Cancers

1

2

5

12

89

100

80

60

30

2

Number of Years  Ago

11.1

12.6

15.5

18.5

20.0

19.7

20.5

21.2

5.6

6.2

7.1

7.9

8.7

8.2

6.9

7.3

1975

1985

1995

2005

Incidence Rate

Survival Rate

2013 Cancer Genetics, Inc.  

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Despite Improved Cancer Care, Case Numbers for

Hematologic Cancers are Still Rising

Validated in Collaboration w/ Dr. Kanti Rai & Dr. Nicholas Chiorazzi (NSLIJ); 2 Datasets, 322 specimens

Additional Validations being conducted w/ HUMC & Dana Farber; 2 Cohorts, 350+ specimens

Favorable

Intermediate

Unfavorable

Favorable/

Intermediate

(no distinction)

38% of cases in our study have

a favorable prognosis falling

under "watch & wait" approach.

8% of cases with unfavorable

prognosis missed by FISH and

caught using MatBA

®

-CLL/SLL.

Impact on therapy selection &

clinical management of CLL

patients.

Genomic Aberrations Reported

by FISH:

4

Genomic Aberrations Reported

by MatBA

®

-CLL/SLL:

20

85%

85%

15%

FISH

23%

39%

38%

(Current Method)

(CGI Method)

2013 Cancer Genetics, Inc.  

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MatBA

®

-CLL/SLL Array-CGH Improves Risk

Stratification & Outcome Prediction

MatBA

®

-

CLL / SLL is a diagnostic tool and

prognostic indicator for patient stratification

and improved patient management

Poor outcome = High risk

Intermediate outcome = Intermediate risk

Good outcome = Low risk

Detection of specific genomic imbalance in

CLL/SLL by MatBA

®

-CLL/SLL correlates

patient risk with time to first treatment

(TTFT) and shorter overall survival (OS)

Time to First Treatment (TTFT)

Time (months)

Time (months)

–

GOOD (n=74)

–

INTERMED (n=107)

–

POOR (n=47)

–

GOOD (n=74)

–

INTERMED (n=107)

–

POOR (n=47)

P = 0.090

P = 0.001

P < 0.001

P = 0.010

Overall Survival (OS)

Being actively used in clinical care, in clinical trials

and in validation programs with Dana Farber,

MSKCC and HUMC

20 key genetic events/sites classify CLL patients

as having the potential for

Patients classified as high risk showed a shorter time

to first treatment (TTFT) compared to those classified

as low or intermediate risk

Patients classified as high risk had significantly

shorter overall survival (OS) times than those

classified as low or intermediate risk

Provides additional risk stratification between low

and intermediate risk patients, not currently

available in other tests

2013 Cancer Genetics, Inc.  

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MatBA®

Can Group Patients Into Risk Groups and

Prognostication Classes

From Leukemia & Lymphoma – Houldsworth, et. al Sept/Oct 2013

2013 Cancer Genetics, Inc.  

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Prospective ongoing percutaneous needle biopsy (n>50) MSKCC

Approaching 100% classification between benign and malignant lesions

J. Coleman (MSKCC) & E. Klein (Cleveland Clinic)

Retrospective ongoing in-house FFPE validation (n>150) CCF

Test to distinguish benign from malignant subtype

In-silico validation (n>600)

Tested to subtype

UroGenRA™-Kidney Can Help Decide if Partial Kidney

Removal Is Required and Guide Treatment Selection

PROBLEM

Men and women with renal masses

often undergo unnecessary

nephrectomy for accurate diagnosis

and experience delay in treatment

SOLUTION

UroGenRA™

is designed to detect genomic

aberrations in a single assay in percutaneous

needle biopsies permitting accurate diagnosis

and reduction in cost & time to treatment

Clinical

Benefits

Include

Reduction

in

Number

of

Highly

Invasive

Procedures,

Time to Treatment Selection and Time to Treatment Initiation

Demonstrated ability to diagnose pathologically “unclassifiable” biopsies prior to surgical intervention

ccRCC(n=489)

91%

pRCC(n=75)

97%

chrRCC(n=65)

98%

Subtype

Specificity

2013 Cancer Genetics, Inc.  

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Cervical cancer effects nearly 500,000 women annually with nearly

80% in developing countries.

FHACT™

-

A New Genomic Aid In The Screening &

Management Of Cervical Cancer

•

Provides critical information which reduces unnecessary and costly colposcopy

•

Predicts the progression and associated risk of cervical cancer progression

Global Validation Partners

National Cancer Institute

Georgia Health Sciences Univ.

University of Iowa

Kamineni Hospital

Genomic Amplification By Disease Category

90% Regress

to Normal Grade

Decreased

Risk

for

Cancer

10% Progress

to Higher Grade

Increased

Risk

for

Cancer

HPV+

Abnormal

Cervical

Lesions

Source: Luhn  et  al., IPV Poster, 2012

www.cmdrc.com

* - Launched Outside U.S. As A Product

2013 Cancer Genetics, Inc.  

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IP Position and Detailed Global Strategy

Strong and growing portfolio in molecular-focused patents for disease

identification and stratification

IP-based on unique algorithms across a broad group of chromosomal regions

Validation of specific clinical endpoints that are associated with particular

disease outcomes or decisions

Filing and maintenance of trademark portfolio

Panel for the Detection and Differentiation of Renal

Cortical Neoplasms

US 11/932,422

Europe 08844570.5

Methods of Analyzing Chromosomal Translocations

Using Fluorescence In Situ Hybridization (FISH)

US Issued Patent 7,585,964

US Issued Patent 7,964,345

Canada 2,447,320

Methods and Tools for the Diagnosis of Female

Gynecological Cancers and Precancers

US 61/581,350

Tool for Diagnosis and Prognosis of Mature B-Cell

Neoplasms

US 12/980,480

US 13/475,034

Europe 10803548.6

India 6657/DELNP/2012

Canada 2,785,656

Methods for Detecting Human Papilloma Virus-

Associated Cancers

US 13/227,027

US 13/474,111

PCT/US2011/050681

2013 Cancer Genetics, Inc.  

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Community Hospitals

Regional Cancer Centers

Oncologists and Pathologists

Continue to growing sales force that calls on

hospitals and regional laboratories

Plan development of national footprint through

Expand Dx™

Biotechnology Companies

Pharmaceutical Companies

Leverage clinical infrastructure and proprietary

product portfolio for testing services that support

clinical trials

Expand sales emphasis of Select One™

Emerging Markets

Enhance distributor base in select emerging

economies

Partner with leading local cancer care providers

and hospitals to provide probes, arrays and

clinical services

Collaborate to create and validate microarrays

and other proprietary products

Accelerate launch of large scale studies

Universities and Research Centers

Target Markets

Commercialization Strategy

Large, Targeted Market Opportunities with Extensive

Value Creation for Key Markets

2013 Cancer Genetics, Inc.  

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Delivers better outcomes to

community hospitals and

laboratories

Enables community hospitals

to bring “state-of-the-art”

genomic testing to patients

Brings personalized medicine

to the community hospital vs.

just at academic and teaching

hospitals

Allows community hospitals

to keep patients and treat

them locally

Improving care and quality is

critical to maintaining

reimbursement for community

hospitals

Source: American Hospital Association

Expanding & Developing Cancer Care

is

a

Top

Priority

for

Hospital

CEOs

& CFOs

4,000 to 5,000

Community Hospitals

& Laboratories in the U.S.

85%

Of All U.S. Cancer Patients are

Initially Diagnosed in Community

Hospitals & Laboratories

$600,000 -

$800,000 USD

in Testing

Opportunity on Average per Hospital

Unique Service Offering Developed to Enable Community

Hospitals to Improve Cancer Outcomes & Treat Patients Locally

2013 Cancer Genetics, Inc.  

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GROWTH IN CGI’s DIRECT BILL

CLIENTS ($000)

21%

55%

ONCOLOGY DRUGS ASSOCIATED

WITH BIOMARKER(S)

Source: Company Analysis and Management Estimates

2011

2016

$221

$684

$1,738

1H, 2011

1H, 2012

1H, 2013

Well-Positioned for Use in Clinical Trials & Companion Diagnostic Programs

Clinical Trial Services Showing Strong Growth

and Robust Pipeline

2013 Cancer Genetics, Inc.  

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Comprehensive, biomarker-based patient profiling will help risk stratification and response

monitoring

Improved patient profiling will result in improved trial efficacy for Gilead

Testing will occur across several methodologies, including flow cytometry, FISH,

sequencing

and

mutation

assays,

and

MatBA

®

microarrays

CGI provides biomarker driven insight regarding patient targeting and potential outcomes

Trials cover both national and international locations with all patient specimens being

processed in Rutherford, New Jersey

CGIX

Press

Release:

Cancer

Genetics,

Inc.

Selected

By

Gilead

Sciences,

Inc.

to

Provide

Clinical

Trial

Services

for

International

Trials

in

Chronic

Lymphocytic

Leukemia

Gilead is Currently Using a Comprehensive Panel of CGI

Services & Proprietary Products in National & International

Trials for Hematologic Cancers

Highlights

The Gilead Relationship Exemplifies the Significant Upside Potential of

CGI’s Select One™

Offering

Collaborations with Premier Cancer Research Institutions

Leading Differentiated Research & Driving Product Adoption

2013 Cancer Genetics, Inc.  

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Research  Collaboration/

Licensing

Clinical

Services

Partnership

Highlights

Renal Cancer, DLBCL, MCL & FL

Joint Venture Focused on Oncology

& Next Generation Sequencing

Cervical Cancer

DLBCL

CLL

Cervical Cancer & DLBCL

Cervical Cancer

Kidney Cancer

DLBCL, Head & Neck Cancers

CLL

2013 Cancer Genetics, Inc.  

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Well-Positioned and Growing Internationally

Including in Emerging Economies

International revenue comes from sale of oncology products

(DNA-FISH probes, arrays) and services to emerging economies

Expect exposure to increase to emerging economies through

strong partnerships with Kamineni Life Sciences (India), Roche

(Central America & Caribbean), and DASA (Brasil)

We focus our efforts through partnerships to ensure compliance

with local regulations and distribution issues

Expanded distribution network with 4 new distributors covering 7

countries

Continued focus on increasing international partnerships in 2013

and 2014

2013 Cancer Genetics, Inc.  

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Roche Partnership

Expanding Market Presence Internationally

CGI won a global RFP to help a strategic personalized medicine initiative for Roche

Servicios (Latin America)

Roche

sends

all

patient

samples

to

the

Rutherford

facility

where they are catalogued and

processed

CGI interacts with both Roche and the hospital staff (pathologists, oncologists and nurses)

and supports delivery of reports through an online HIPAA compliant portal

Plans are in development to expand the relationship

CGI will be providing genomic and biomarker testing services

to 14 countries in Central America and The Caribbean.

CGIX Press Release: Cancer Genetics, Inc. selected by Roche Servicios S.A. to provide services for the diagnosis and personalization of oncology treatment

Highlights

"Since the beginning, CGI understood our needs and requirements and most importantly, consistently

delivered the service we required…allowing us to offer high quality results and in a very short time to

our patients. This commitment with Roche vision and values to offer to patients the best service to

improve their lives, has made CGI a true business partner."

Alvaro Soto, Roche Servicios | Central America & Caribbean General Manager

2013 Cancer Genetics, Inc.  

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Mayo Clinic Joint Venture

Investing

in

the

Future

–

OncoSpire Genomics

JV to develop clinical diagnostic products and services on NGS platform(s) for select

cancers

Select three initial projects in key oncology categories by the SRC (Scientific Review

Committee)

CGI commits up to $6 M over initial three year period (2013 to 2015-16 expected)

Mayo commits to “in-kind”

services and support, use of facilities, NGS capabilities and

patient samples

Joint Venture is exclusive in the project areas selected by CGI & Mayo

Next Generation Sequencing in Oncology

CGIX Press Release: Mayo Clinic Forms Joint Venture with Cancer Genetics

Highlights

The Value and Focus of Next Generation Sequencing is Moving from

Platforms to Clinically Relevant, Disease-Specific Applications

2013 Cancer Genetics, Inc.  

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Strong History of Growth

CGI

Revenue

&

Clinical

Volume

Trends

(2009

–

2013

thru

6

mos)

$1.67

$2.52

$3.02

$4.30

$3.05

2009

2010

2011

2012

2,321

3,146

3,622

6,610

5,115

2009

2010

2011

2012

1H-2013

Total Revenue ($Mn)

Clinical Volume (Tests Processed)

1H-2013

Trailing 12 Months Revenue is

$5.4 Mn

2013 Cancer Genetics, Inc.  

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2012

2013

Strong History of Growth -

Revenue & Clinical Volume Trends

(Quarterly Comparison 2012 vs. 2013)

Total Revenue ($000)

1

Quarter

2013

2012

2

Quarter

Grants*

Grants*

Clinical Volume (Tests Processed)

2012

2013

1

Quarter

2013

2012

2

Quarter

Note: Approx. 90% Growth

2

Quarter

2013

vs.

2012,

Excluding Grants

46%

60%

97%

19%

st

nd

st

nd

$835

$1,148

$1,218

$1,832

1,610

1,623

1,911

3,204

* Grants Q1,2012: $10K

**Grants Q2,2012: $185K

nd

2013 Cancer Genetics, Inc.  

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Summary Statement of Operations

(2009-2013 thru 6 mos)

Income Statement Item

2009

2010

2011

2012

1H-2013

Revenue

$1,666

$2,522

$3,019

$4,302

$3,050

Gross Profit

(866)

(995)

(98)

373

701

Gross Margin (%)

(52%)

(39%)

(3%)

9%

23%

Research & Development (R&D)

1,336

1,167

2,074

2,112

951

Sales & Marketing (S&M)

239

716

1,574

1,399

832

General & Administrative (G&A)

1,845

3,446

4,439

4,503

2,961

Operating Profit (Loss)

(4,286)

(6,323)

(8,185)

(7,641)

(4,043)

Net Income (Loss)

(7,328)

(8,407)

(19,887)

(6,666)

(6,782)

$ in thousands

2009 - 2012 audited

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Summary Statement of Operations

(Quarterly & First Half Comparisons 2012 vs. 2013)

Income Statement Item

Q2 2012

Q2 2013

%

1H 2012

1H 2013

%

Revenue

$1,148

$1,832

60%

$1,983

$3,050

54%

Gross Profit

62

553

+100%

74

701

+100%

Gross Margin (%)

5%

30%

+100%

4%

23%

+100%

Research & Development (R&D)

527

456

(13%)

1,050

951

(9%)

Sales & Marketing (S&M)

376

447

19%

716

832

16%

General & Administrative (G&A)

1,393

1,384

(1%)

2,329

2,961

27%

Loss From Operations

(2,234)

(1,734)

22%

(4,021)

(4,043)

(1%)

$ in thousands

2013 Cancer Genetics, Inc.  

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Summary Balance Sheet

Actual 06/30/13

Pro Forma

(A)

Cash & Cash Equivalents

$1,941

$12,933

Total Assets

6,456

17,303

Total Liabilities

13,325

9,681

Stockholders’

(Deficit) Equity

(6,869)

7,622

$ in thousands

(A) Pro Forma basis gives effect to (i) the receipt of net proceeds of approximately $13.5 MM from

the sale of 1,500,000 shares of common stock at $10.00 per share, less offering expenses in

our secondary offering which closed on August 19, 2013, (ii) the repayment of outstanding

indebtedness of approximately $3.5 MM, and (iii) the receipt of additional net proceeds of

approximately $976,000 from the sale of 105,000 shares of common stock at $10.00 per share

less offering expenses pursuant to the partial exercise of the underwriters’ over-allotment

option on September 5, 2013.

2013 Cancer Genetics, Inc.  

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Gross Profit Margin

Highlights of Initiatives

Manufacturing in India (Probes) 

Increased automation 

Process improvement and

innovation

Capacity utilization

Leveraging cloud for scale in IT,

data storage and clinical

operations

Developing innovative model for

doing remote genetic analysis in

India

(52%)

(39%)

(3%)

9%

23%

(1,000)

(800)

(600)

(400)

(200)

0

200

400

600

800

2009

2010

2011

2012

1H-2013

2009-2012 audited

Consistent Focus on Gross Profit Improvements

Additional Efforts Focused Operationally in US & India

2013 Cancer Genetics, Inc.  

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NASDAQ: CGIX    |    29

Payor Revenue Mix 2013 (1H, 2013)

Selected Payors

Direct Bill Customer Types

Reimbursement Based

Direct Bill / Pay Based

Insurance Companies

Medicare

Companies, Hospitals

& Care Facilities

Grants, Royalty & Other

Pharmas

1H, 2013

Multiple Customer Types Provide Diversified Revenue Mix

With Covered Lives Already in Place

57 million covered lives through multiple payors:

Biotechs

Academic

Cancer Facilities

Community &

Regional Labs

2013 Cancer Genetics, Inc.  

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Experienced and Focused Management and Boards

Scientific Advisory Board

Andrea Califano, Ph.D.

Chairman of the Columbia Initiative for Systems Biology

Associate Director for Bioinformatics, Herbert Irving

Comprehensive Cancer Center

Timothy A. Chan, M.D., Ph.D.

Principal Investigator, Human Oncology and Pathogenesis

Program at Memorial Sloan-Kettering Cancer Center

Riccardo Dalla-Favera, M.D.

Director, Institute for Cancer Genetics at Columbia

University

Hans-Guido Wendel, M.D.

Principal Investigator, Cancer Genetics Laboratory at

Memorial Sloan-Kettering Cancer Center

Vundavalli V. Murty, Ph.D.

Director, Cancer Cytogenetic Laboratory and Molecular

Pathology at Columbia University

Andrew D. Zelenetz, M.D., Ph.D.

Chief of Lymphoma Service and Head of Molecular Hemo-

Oncology Laboratory, Department of Medicine at MSKCC

Raju Chaganti, Ph.D., FACMG  Founder & Chairman

35 years in cancer research; 37 at MSKCC

Major discoveries in cancer genomics

Published 350+ articles, 4 patents

Panna Sharma  President & CEO

15+ years as advisor to global life science & healthcare cos.

Founded TSG Partners

Chief Strategy Officer, iXL (IIXL)

Elizabeth Czerepak  Chief Financial Officer

9 yrs as biotech VC; 18 yrs in pharma finance & deal making

JPMorgan, Bear Stearns Health Innoventures, BASF, Roche,

Merck

Jane Houldsworth, Ph.D. Vice President of R&D

25 years in translational oncology research

Published 50+ articles, 4 patents

NIH grantee

Raju Chaganti, Ph.D.

|

Keith Brownlie

|

John Pappajohn

|

Franklyn Prendergast, M.D., Ph.D.

Panna Sharma

|

Edmund Cannon

|

Andrew Pecora, M.D.

|

The Honorable Tommy G. Thompson

Board of Directors

Officers & Management Team

2013 Cancer Genetics, Inc.  

| 

NASDAQ: CGIX    |    31

Strong, Commercially-Focused News Flow & Consistent

Achievement of Milestones Expected in Coming Quarters

Increasing covered lives market access through additional

payers and health care organizations

Launching multi-marker NGS panel for leukemia and lymphomas

Additional international agreements with life science tools

companies for DNA Probes and product distribution in key

geographies

UroGenRA™

Kidney –

Next phase of data and results from

Cleveland Clinic collaboration

MatBA

®

–

Next phase of data and results from Dana Farber and

HUMC studies to help support value and reimbursement

CE Approval for FHACT™

–

Allows for IVDD use in E.U.

Additional news on biopharma partners and relationships

Announcing initial set of projects and launch plans for

OncoSpire Genomics

Upcoming Milestones & Value Drivers

Accelerating market traction

–

over

50% quarter to quarter growth in 2013

and 60% over same quarter last year

Launched UroGenRA™

–

Kidney,

a

unique microarray for kidney cancer

diagnosis and treatment selection in

collaboration with MSKCC

Launched FHACT™

outside the U.S.

in collaboration with the National Cancer

Institute research publication

Received CLIA Approval for MatBA

®

–

MCL (Mantle Cell Lymphoma)

Finalized Agreement with Multiplan

which gave us access to 57 million

covered lives

Launched OncoSpire Genomics –

A

Next Generation Sequencing Joint

Venture with Mayo Clinic

Recent Accomplishments

For

further

information,

please

contact

us

at

ir@cancergenetics.com

Cancer Genetics, Inc.

Meadows Office Complex

201 Route 17 North

Rutherford, NJ 07070

(201) 528-9200

www.cancergenetics.com

Appendix

MatBA

®

-CLL/SLL resolved the prognostic discrepancy and confirmed high risk of poor outcome

Clinician could then consider a more aggressive route of treatment for patient

Allowed physician to better manage care and provide a more personalized treatment plan

Gain

of

2p

&

19,

loss

at

6q

poor

outcome

Biomarkers not assessed by other methods

Comprehensive Genomic Assessment

Conflicting

Previous

Prognoses

FISH

favorable/intermediate

outcome

(13q loss)

Molecular

poor outcome

(IGHV

status: unmutated)

Contradictory Prognoses

Left a Key Question: How to

Best Manage & Treat This

Patient’s Leukemia?

CASE #174

MatBA

®

-CLL/SLL Delivers Clear Value in Personalization of

Leukemia Treatment –

Clinical Case Study

MatBA

®

-CLL/SLL Can Favorably Impact Quality of Care and Reduce Healthcare

Costs Due to Earlier and More Accurate Molecular Prognosis

2013 Cancer Genetics, Inc.  

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NASDAQ: CGIX    |    34

2013 Cancer Genetics, Inc.  

| 

NASDAQ: CGIX    |    35

Absence of chromosomal instability is consistent with low risk of progression to a higher grade

Clinician can decide not to refer patient for immediate colposcopy

Clinician can choose to put patient under active surveillance with follow-up in 6 months

(-) for gain of 3q26, 5p15, 20q13 & Cen7 in 2,000+ cells scanned

No chromosomal instability detected

No resampling required

DNA FISH Probe Screening Assay

Pap Smear

Classified as

LSIL (low grade)

Low grade cervical lesions may

regress (~90%) or progress (~10%)

Patients are typically referred for

colposcopy procedure (1M+ /year)

Will The Patient’s Low-

Grade Cervical Lesion

Progress to a Higher

Grade, or Regress?

CASE #021

FHACT™

Serves as an Additional Triage Step to Reduce Invasive Procedures &

Healthcare Costs and Can Also be Applied to Other HPV-Associated Cancers

FHACT™

Fits Directly into Today’s Cervical Cancer Screening

Workflow as Additional Triage –

Clinical Case Study

2013 Cancer Genetics, Inc.  

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NASDAQ: CGIX    |    36

Existing CGI

Capabilities

DNA-FISH Probe

Low Resolution (~1-2Mb)

Mid-High Market Maturity

Value:

High in established markets and growing in emerging

markets

High Resolution (~1-2kb)

Low-Mid Market Maturity

Value:

Growing in established and more mature healthcare

economies

Sequence

Fragment & Hybridize to

Microarray

Analyze

Natural Extension of Technologies Used to Genomically Assess Cancer

DNA Next Generation Sequencing

Very High Resolution (1-2 nucleotides)

Emerging Market

Value:

High in research but clinical value still emerging. First mover

advantage in application development is critical

The Next

Step

Expanding Proprietary Capabilities Across Full Range of

DNA Detection Methodologies

DNA Microarray