EX-99.2 5 brhc10014594_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

 +  Erik Holmlin, PhD, CEO of Bionano GenomicsAugust 24, 2020  Creating a leader in digital cytogenetics through a combination of systems & consumables with Laboratory Developed Tests (LDTs) & services in a CLIA-certified setting 
 

   Legal Disclaimer This presentation contains forward-looking statements. Forward-looking statements describe future expectations, plans, results or strategies and are generally preceded by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” and similar expressions (including the negative thereof). Forward-looking statements in this presentation include, but are not limited to, statements regarding: (i) growth drivers and expected levels of our organic growth; (ii) synergies created by our acquisition of Lineagen; (iii) the impact of our investment in R&D and commercial initiatives; (iv) our ability to stay in front of competitors’ improvements in technologies; (v) other statements that are not historical facts. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Forward-looking statements are based only on current information, assumptions and expectations, and involve a number of risks and uncertainties relating to (i) challenges inherent in developing, manufacturing and commercializing products; (ii) the timing and mix of customer orders among our products; (iii) our ability to further deploy new products and applications and expand the markets for our technology platforms; (iv) third parties’ abilities to manufacture our instruments and consumables; (v) the success of products competitive with our own; (vi) our expectations and beliefs regarding future growth of the combined business and the markets in which we operate; (vii) the accuracy of our estimates, (viii) our ability to fund our operations and (ix) the application of generally accepted accounting principles which are highly complex and involve many subjective assumptions. We are under no duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements contained in this presentation. More information about these and other statements, risks and uncertainties is contained in our filings with the U.S. Securities and Exchange Commission. All forward-looking statements contained in this presentation speak only as of the date on which they were made. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, occurrence of future events or otherwise except as required by applicable law.  
 

 Bionano Sells the Saphyr System to Detect the Other Genome Variant: Structural Variations (SVs) 
 

  Uses combination of multiple techniques incl. microscopes to manually visualize banding patterns on intact chromosomes to detect SVs  Saphyr May Drive the Digital Cytogenetics Revolution  Uses Saphyr to automatically image 1000x more label patterns on single DNA molecules in massively parallel nanochannels to detect SVs  CYTOGENETICS  DIGITAL CYTOGENETICS  Cytogenetic & chromosomal SV analysis is FIRST LINE analysis in guidelines by NCCN, WHO, ACMG, etc. for genetic diseases, liquid tumors (leukemias and lymphomas), and solid tumors (cancer)  KARYOTYPINGMax resolution of ~5MbRequires cell culture  FISHOnly tests selected genesLow throughput  MICROARRAYOnly detects deletions and duplications, misses all balanced events 
 

 Lineagen is a Complementary Business that Provides Actionable Information through Diagnostic Services to Patients with Developmental Disorders  FROM ONE BUCCAL SWAB . . .  Five tests providing multiple revenue streamsCLIA-certified LDTs and servicesPersonalized, easy-to-understand resultsGenetic counseling and clinical educationEnd-to-end support with reimbursement 
 

 More than Products: Lineagen is an Accelerant for Digital Cytogenetics  ESSENTIAL COMPONENTS FOR BUILDING REIMBURSED DX MENU ON SAPHYR  Trained billing specialists lay groundwork for reimbursement of Saphyr LDTs  COMBINING PRODUCT-AND SERVICE-BASED BUSINESSES  Proprietary database from Toronto Sick Kids Hospital provides basis for differentiated tests, current and future  +60,000 tests performed on +30,000 patients, and counting   Proprietary Content in Pediatric Neuro Developmental Disorders  Patient Samples & Database  Provide expertise for improved Saphyr Dx and workflow integration  Differentiated service and critical link between physicians, patients and families  Leverage existing relationships and contracts with payors   Clinical Cytogeneticists & Custom Interpretation Software  Genetic Counseling  Certified Coders  3rd Party Payor Contracts  REVENUE: IMMEDIATE IMPACT  Lineagen adds new revenue streams to help support growth of the combined business  Provides centralized and decentralized offerings to support the broader market  Development of proprietary LDTs helps drive Saphyr adoptionEnhances Bionano offering to pharma customers seeking new therapeutic targets  CLIA Certification  Accelerates Saphyr entry into the clinic by adding content, skills, expertise and sample archives 
 

 Saphyr genome imaging system and consumables sold to leading scientists and clinicians for digital cytogeneticsAddresses a $2.6-3.8B market opportunity with system placement opportunity of ~10,000 systemsAdoption by leading cytogenetics labs in US and EuropeGrowing bibliography of publications validate Saphyr as replacement for traditional cytogenetic methods including karyotyping, FISH and CMA, plus outdated molecular methods such as Southern Blot. They underscore Saphyr’s ability to find SVs other methods fail to detect101 employeesLTM Revenues (June 30, 2020) $8.5 million  Bionano + Lineagen Side-by-Side:Critical Mass to Support Global Adoption of Saphyr and Address Significant Clinical Unmet Needs   Bionano GenomicsProducts: Systems, consumables and software for highly accurate structural variation analysis  A leader in digital cytogenetics providing researchers and clinicians with the tools to detect structural variations  Portfolio of CLIA-certified Laboratory Developed Tests to assist physicians in diagnosing genetic conditions sooner to develop personalized healthcare management for patients and familiesAddresses a $1B market for pediatric development disorders Proprietary content and powerful reports supported by robust team of clinical genetic specialists, including genetic counselors and cytogeneticists Strong commercial organization with extensive capabilities in the USMulti-year history of contracted, reliable & stable reimbursement from prominent public and private payors35 employeesLTM Revenues (June 30, 2020) $6.0 million  LineagenServices: Laboratory Developed Tests through CLIA-certified services for pediatric genetic disorders   A leader in neurodevelopmental disorder testing with CLIA-certified LDTs for both pediatric specialists and generalists alike 
 

 Bionano + Lineagen As One:Topline Expansion, Bigger Addressable Market, Deeper Market Penetration & New Products as Bionano Expands Clinical Applications  MULTIPLE WAYS TO ACCELERATE CLINICAL ADOPTION    Existing Bionano Business     Existing Lineagen Business First-Line CMA tests + WES    +    Expand to more services, including pharma services with Partner Labs    Leverage Lineagen’s reimbursement expertise to sell more Saphyrs    Novel Laboratory developed tests (LDTs)    Potential FDA-cleared tests    +    +    +    + 
 

         The Combination Drives Financial Benefits  REVENUE SYNERGIES  Rapid market expansion for Saphyr  Expand Lineagen testing to new markets  Proprietary Cytogenetics IVD development  Operating Expenses  Lineagen provides BNGO with a strategic platform in the form of CLIA-certification and an existing commercial channel to support Saphyr adoption in new markets  Today Lineagen’s cytogenetic testing capabilities are focused on the pediatric neurodevelopmental market leaving many other markets, such as cancer, ripe for expansion  Together, BNGO and Lineagen are in an excellent position to develop high-performing/high-margin clinical diagnostics that can be first commercialized in the lab and ultimately as IVDs  Leveraging multiple economies of scale for combined companies  COST SYNERGIES 
 

 Combining A Genomics Platform Company With A Diagnostic Testing Company Has Been Done Before      2013  2020  +  Illumina  Verinata Health  Invitae  Archer  + 
 

 2019 Pro Forma Financial Snapshot  ($ in millions)      Revenue  Cost of Revenue  LineagenStandalone  BNGOStandalone  $10.1M  $6.8M  $7.5M  $3.4M  BNGO+LineagenPro forma   $17.6M  $10.2M  2019 
 

 Summary Terms  ($ in millions)  Bionano acquired Lineagen by way of a stock deal valued at approximately$9.6M plus repayment of Lineagen’s $1.1M PPP loan  Consideration  Cash:  None  Stock:  ~6.2M (based on pps of $0.81)  $5M  Shares:  Value:  Liabilities:   $4.6M in trade payables assumed1 + $1.1M PPP loan repayment  $9.6 M + $1.1M PPP loan repayment  Total Consideration:  Earnout:  None  1 Approximately $1.7 million in liabilities were paid in full at closing (in addition to repayment of Lineagen’s PPP loan) 
 

   Creating a leader in digital cytogenetics through a combination of systems & consumables with Laboratory Developed Tests (LDTs) & services in a CLIA-certified setting  +  Erik Holmlin, PhD, CEO of Bionano GenomicsAugust 24, 2020