Cgix profile 20131010

Cancer Genetics, Inc.
(NasdaqCM: CGIX)
October 10, 2013
Target Price: $26.75
Recent Price: $16.98

Watch Fox Business Interview
with CEO Panna Sharma
Market Data
Fiscal Year
Industry
Market Cap
Price/Earnings (ttm)
Price/Book (mrq)
Price/Sales (ttm)
EBITDA (ttm)
ROE (ttm)
Institutional Ownership
Shares Outstanding
Float
Avg. Daily Vol. (3 mos.)
As of October 10, 2013

December 31
Healthcare
$101.3M
N/A
13.8x
18.9x
($7.3M)
N/A
0.3%
6.0M
3.8M
126,841

Income Snapshot
Revenue
Gross Profit
Gross Margin

TTM
$5.4M
$1.0M
18.6%

Balance Sheet Snapshot
Cash
Debt
*ProForma takes into account net
proceeds of approximately $13.5 million
from common stock offering

ProForma
$12.7M
$6.1M

On October 8, 2013, CGIX filed an S-1 to raise up to $46 million in common stock.
We view this as positive, as a large capital raise would provide funds that can be
used to accelerate growth of CGIX’s proprietary genomic tests, leading to increased
revenue and potentially reducing the time needed to reach profitability. With a
larger cash reserve, CGIX can accelerate investment in sales and marketing,
achieving faster market penetration and expand geographic coverage to establish a
national footprint. Establishing a national footprint enables CGIX to better compete
with Foundation Medicine (FMI), as CGIX can offer a more complete set of
oncology Dx services than FMI.
CGIX is already receiving reimbursements for its proven, proprietary tests, and
additional cash will allow the Company to expand and deepen relationships with
third-party insurers. Additionally, CGIX can take advantage of expected volume
increases due to the Patient Protection and Affordable Care Act, which is extending
coverage to approximately 32 million previously uninsured people. Higher capacity
utilization will yield increases in gross margins.
This raise also provides funds (up to $6 million) for OncoSpire Genomics, its joint
venture (JV) with the Mayo Clinic. This JV has the potential to provide cutting-edge
IP through the development of next-generation sequencing based oncology testing
panels. We believe the decrease in stock value on October 9 was unwarranted, and
also point out that the selloff was on volume of 291,100, less than the average
volume over the past 14 days of 435,352 (Volume Weighted Average Price
(VWAP) over the last 14 days is $19.50).
Our original valuation had already taken into account additional dilution; as such we
maintain our price target of $26.75 and year end 2016 shares outstanding estimate of
9.6 million. Even taking into account a conservative capital raise price of $17.00 per
share (equal to the VWAP over the past thirty days) would result in a maximum
increase in shares outstanding of 2.7 million, giving the Company total shares
outstanding of only 8.7 million.

Analyst: Thomas Pfister Email: Thomas@redchip.com Phone #: 407-644-4256

2

Cancer-focused,
commercial
stage
personalized
medicine and diagnostics company with robust pipeline
is set for rapid revenue expansion and global growth
Cancer Genetics, Inc. (CGIX) is an emerging leader in DNA-based cancer
diagnostics and services some of the most prestigious medical institutions in the
world. The Company’s tests target cancers that are difficult to diagnose and predict
treatment outcomes. These cancers include hematologic, urogenital and HPVassociated cancers. CGIX also offers a comprehensive range of non-proprietary
oncology-focused tests and laboratory services that provide critical genomic
information to healthcare professionals as well as biopharma and biotech. Its stateof-the-art reference lab is focused entirely on maintaining clinical excellence and is
both CLIA certified and CAP accredited and has licensure from several states
including New York State. CGIX has established strong research collaborations and
agreements with major cancer centers such as Mayo Clinic, Memorial SloanKettering, The Cleveland Clinic and the National Cancer Institute. The Company
has also established high-profile clinical trial partnerships with Roche and Gilead
Sciences through its SelectOne program.

Investment Highlights
CGIX has groundbreaking tests in combined $15 billion global market
for hematologic, urogenital, and gynecologic cancers. Cancer Genetics
has developed groundbreaking molecular diagnostic tests for cancer that are
improving patient diagnosis and enabling personalized treatments based on cancer
analysis at its most basic genomic level. Current cancer diagnostics are based on
routinely used sample examinations that tend to be subjective and erroneous, and it
is estimated that only 25%-30% of initial cancer treatments are currently successful.
Molecular diagnostics allows for patients to receive faster and more accurate
diagnosis, as well as more personalized oncology care. It allows payors and vendors
to enjoy cost-savings when oncologists receive the right information at the right
time and it helps pharmaceutical companies to see the high value in personalized
medicine by acknowledging that targeted therapeutics require companion diagnostic
tests. The Company estimates the U.S. hematological, urogenital, and gynecological
cancer markets to be worth $2.2 billion, $3.5 billion, and $1.0 billion, respectively,
giving CGIX an addressable market of $6 billion in the U.S. ($15 billion including
ROW).
Five proprietary oncology tests launched, proving ability to launch and
gain test approval; Eight tests in development provide diversification
and risk reduction. With five market-leading tests launched and eight more being
developed, we believe that CGIX is poised to experience strong revenue growth
over the next few years. Having a larger portfolio of tests reduces the dependence on
any one test for success, thus reducing risk to investors.
REDCHIP RESEARCH PROFILE

3

Proprietary tests provide more accurate risk assessment and improved
treatment options. As an example of this, the Company’s MatBA®-CLL/SLL
test for chronic lymphocytic leukemia and small lymphocytic lymphoma reported
many additional genomic aberrations and was much more accurate in determining
the recommended treatment aggressiveness. Sub-types of leukemia and lymphoma
have gone up significantly over the last 30 years (according to Genzyme & Nature,
there were 12 sub-types of leukemia & lymphoma 30 years ago, compared with 89
sub-types 2 years ago). In spite of overall advances in medicine, survival rates
remain well under 10% and have shown minimal improvement over the past 30
years. Given the lack of treatment progress, effective genomic profiling seems to be
vital in improving patient prognosis and treatment plans.

The test indicated an 8% increase in unfavorable treatment outcomes (these patients
will need aggressive treatment as their prognostic outlook is poor), and was able to
distinguish between a favorable or an intermediate prognostic outlook, which the
FISH test was unable to do (favorable outlooks can often have a wait and see
approach, while an intermediate outlook would require a more aggressive approach).
Additionally, reporting greater amounts of genomic aberrations helps to better
identity specific cancer sub-types, which can lead to better diagnosis and treatment
protocols.
The Company’s new MatBA® – DLBCL (Diffuse Large B-Cell Lymphoma) test
has strong potential, as Diffuse Large B-Cell Lymphoma makes up approximately
60% of all aggressive lymphoma cases and has genetic mutations, such as double hit
lymphoma, that carry less favorable prognoses. This test is the first of its kind on the
market.


4

CGIX currently has the largest array of proprietary tests available for mature B-cell
neoplasms, as evidenced by the chart below:

The Company’s UroGenRA™-Kidney Panel allows a diagnosis based only on a
single needle biopsy, thus preventing the need for costly, invasive, time-consuming,
and sometimes dangerous surgeries. Typical fine-needle aspirates are inconclusive
approximately 30% of the time, while CGIX is able to increase conclusive test
results from 70% to near 100%, representing a strong value proposition to hospitals
and physicians by shortening the time to treatment and improving diagnostic
accuracy. Urogenital cancers represent the largest potential market for CGIX, with a
$3.5 billion overall U.S. market and over 380,000 new cases in the U.S. per annum.
Estimated
New U.S.
Cases for
2013

Estimated
U.S.
Deaths
for 2013

Leukemia

48,610

23,720

Non-Hodgkin
Lymphoma

69,740

19,020

Multiple Myeloma

22,350

10,710

Kidney

65,150

13,680

Prostate

238,590

29,720

Bladder

72,570

15,210

Cervical

12,340

4,030

Ovarian

22,240

14,030

Endometrial

49,560

8,190

Total Addressable U.S.
Market

601,150

138,310

CGI Addressable
Markets

Source: American Cancer Society, 2013

CGIX has also recently launched its FHACT (HPV-Associated Cancer) test. With
regards to FHACT for cervical cancer, this test can allow for doctors to detect
chromosomal instability without performing a colposcopy (approximately 90% of
low-grade cervical lesions regress), which can help to reduce costs. This test is
currently being used in emerging markets that lack a quality gynecological
infrastructure and need more cost-effective testing (India, Eastern Europe, Mexico).
Worldwide, there were 530,000 cases of cervical cancer in 2008, with a death rate of
approximately 52%. Over 85% of new cervical cancer cases and 88% of deaths
occur in developing countries (Source: Globocan 2008 Cancer Fact Sheet). Five
proprietary tests have been launched to date, and CGIX plans to launch at least
another two tests by the end of 2013. In total, the Company has currently
launched/is developing 12 proprietary tests (five for hematologic, three for
urogenital, and four for gynecologic cancers).
Supreme Court ruling on human genes is a positive; CGIX’s patented
algorithms will remain protected. The primary value of CGIX’s patents is in
algorithms that interpret gene activity and events and provide specialized diagnostic
and prognostic data. This is shown in the trial on MatBa®-CLL/SLL, which uses
algorithms to discover various genomic aberrations, which are then interpreted to
provide specific prognostic information. The Company’s slide on its MatBA® tests
shows the range of information that its patented algorithms provide.


5

The supreme court ruling should also help CGIX in two ways: 1) Market uncertainty
related to the decision has been removed and 2) Biomarkers are no longer patented,
meaning that CGIX can now include these biomarkers in their tests, thus improving
their algorithms; and the Company does not need to pay royalties on patented genes
anymore, which should provide a small improvement to gross margins.
Expand DX™ targets over 4,000 U.S. community hospitals &
laboratories; CGIX estimates there is a $600,000-$800,000 revenue
testing opportunity on average per hospital. Expand DX™ is an initiative
outreach program intended to expand regional laboratories’ pathology services
through collaboration with CGIX. Expand DX™ represents an important future
growth driver as 85% of all U.S. cancer patients are initially diagnosed in
community hospitals, and hospitals would like to capture a greater proportion of this
revenue stream. If CGIX can capture 10% of the potential market, this represents a
revenue opportunity of over $240-$320 million. This program represented 46% of
revenue in FY12.
Market entry acceleration from the Company’s recent agreement with
MultiPlan. MultiPlan contracts with 900,000 healthcare providers and has an
estimated 57 million consumers using their products. CGIX’s average
reimbursement per test is currently in a wide range (approximately $1,000 to $5,000
per test), and we believe that collaborating with MultiPlan will bring this total closer
to the industry average of $2,500 to $3,500 per test, causing increases in average
revenue per test and gross margins.
Closed clinical trial contracts increased from $0.2 million at the end of
1Q12 to $7.2 million at the end of 1Q13. CGIX’s Select One™ has two high
profile clinical trial partnerships to date with Roche and Gilead Sciences. Closed
clinical trial contracts have increased substantially over the last year, underscoring
the increasing importance of companion and biomarker diagnostics in the
development of oncology treatments. According to Company data, cancer drugs
with associated biomarkers are expected to increase from 21% in 2011 to 55% in
2016. Increases in the amount of oncology drugs associated with biomarkers, along
with these drugs advancing to later stage clinical trials, should drive impressive
growth in this program.
DNA probes being sold to emerging markets; recent manufacturing
move to India better positions the Company to serve Asian markets
while lowering costs. Recently, the Company has moved manufacturing for
DNA probes to India in order to be able to offer low-cost, high-quality testing to
emerging markets. Such measures indicate CGIX’s ability to target international
markets, which currently make up about 9% of CGIX’s revenue. Outside of selling
DNA probes to emerging markets, the Company has also expanded internationally
through partnerships with Nikon Instruments (selling into the Italian market) and
CGIX has stated that it is currently pursuing other large international partnerships.

6

Development partnerships with premier research organizations help
ensure a robust pipeline of advanced molecular diagnostics tests. In
May 2013 CGIX and Mayo Clinic announced a 50/50 joint venture called
OncoSpire Genomics. Initial focus will be on hematologic and urogenital cancers,
with a final goal of commercializing diagnostic cancer tests using next-generation
sequencing. Mayo Clinic chose to partner with CGIX due to CGIX’s proven ability
to create premier cancer tests for hematologic and urogenital cancers. CGIX has
partnered with other premier research organizations to develop tests; and validate
the existing portfolio with thought leaders. These relationships include:

Multibillion dollar M&A activity is taking place in molecular
diagnostics. Big pharmaceutical companies have demonstrated relevant interest in
diagnostic companies, such as CGIX. Cancer Genetics’ market-leading testing
portfolio in three different multibillion markets (hematological, urogenital, and
gynecological cancer), potential to give value both during patient diagnosis and
pharmaceutical development, and development partnerships with leading research
organizations could make the Company a strong acquisition candidate.
Target
Verinata
DeCode Genetics
Gen-Probe
Genoptix
Celera
Dako
Clarient

Acquirer
Illumina
AmGen
Hologic
Novartis AG
Quest Diagnostics
Agilent Technologies
GE Healthcare


Deal Value
$450 Million
$415 Million
$3,700 Million
$470 Million
$344 Million
$2,200 Million
$580 Million

Date
Jan-13
Dec-12
May-12
Jan-11
Mar-11
May-12
Oct-10

7

Market
Molecular Diagnostics (MDx) is a new class of diagnostic tests that identify nucleic
acids or proteins to test the status of a disease. These nucleic acids or protein, which
belong to individual patients or foreign organisms, help determine a specific
therapy, the risk of developing a specific disease, or other health conditions. MDx is
the fastest growing segment within the in-vitro diagnostics (IVD) space, driven by
accuracy, high sensitivity, fast turnaround time, easy workflow, and cost-effective
testing. According to Kalorama, the market for MDx is estimated to have crossed
$9.7 billion in 2012, and has an expected compounded annual growth rate of 13% in
the next five years, reaching $17.6 billion.
United Healthcare estimates that national spending for genetic and molecular
diagnostics will reach between $15 and $25 billion by 2021. According to United
Healthcare, as of 2010 clinical laboratory tests influenced about 70 percent of health
care decisions, but only eight percent of spending from clinical laboratory services
is currently used on genetic and molecular diagnostics. However, genetic and
molecular diagnostics are expected to make up a greater percentage of this going
forward. A white paper by Rina Wolf of Dark Daily estimates a 10% increase in
new molecular diagnostic tests offered per year, along with a 20% increase in annual
utilization, which compares favorably to the 1-3% per year growth expected for
non-genetic diagnostic tests.
The key growth driver in MDx is oncology. These high value tests command
premium pricing but provide critical information to help physicians make relevant
clinical decisions, which ultimately leads to both lower overall treatment costs and
higher quality treatment decisions. With the potential to reduce overall health care
costs, high value MDx tests are growing in popularity, hence driving spending on
IVD. Currently, Roche, Qiagen Netherlands, and Becton Dickinson are the three
largest molecular diagnostics companies (based on 2012 revenues), but numerous
companies are entering the market by offering more complex and expensive tests
with greater accuracy and predictive prognostic capabilities. While competition in
the space continues to increase, CGIX’s tests are, in many cases, the first of their
kind in their respective oncology field. This first mover advantage should allow the
Company to create strong relationships with community hospitals and cancer care
centers as these tests are introduced to the market.
The lifecycle for the development of a cancer molecular diagnostic assay through
the different stages of regulatory scrutiny typically takes four to five years,
approximately half the time required to bring a new drug to market. Given that the
process is twice as fast, and it only involves a fraction of drug development costs,
there is a significant incentive for MDx companies to innovate and bring new tests
to market. This also lowers the risk involved with a MDx development company,
relative to a biotech firm.


8

The geographical distribution of MDx is centralized around industrialized countries;
however, emerging markets, in particular the BRIC nations, are growing rapidly.
While we don’t believe that CGIX’s proprietary tests will be cost effective in most
emerging markets, the Company has recently moved the manufacture of its lower
cost FISH probes to India. This should provide a combination of low cost
manufacturing and a geographical location that will provide excellent logistics to
emerging Asian economies.
The FDA has made progress in forming a path and encouraging biomarker
discovery and development. With FDA interest increasing, it may become more
common in the future for the FDA to prefer that clinical trials be performed in
conjunction with biomarkers, thus increasing the value of genetic testing.
Additionally, the FDA is increasing the use of biomarkers to test for toxicity, which
signals that the industry is on the rise and of increasing interest in the
pharmaceutical industry.
The use of MDx is becoming particularly important for clinical trial design and
development, and a report by Global Industry Analysts states that they believe
clinical development will represent the fastest growing segment of the global
biomarkers market, representing a 26.5% CAGR from 2012-2017. The discovery
and following of biomarkers, particularly detectable by the use of molecular
diagnostics, allows for a more in depth study during a clinical trial process.
Companion diagnostics are assays intended to assist with treatment decisions based
on the efficacy and/or safety of a specific compound or class of compounds for
specific patient populations. According to Next Generation Pharmaceutical, if
widely adopted the use of companion diagnostics could significantly alter both the
drug development process and the factors governing the successful
commercialization of specific therapeutics. Particularly in oncology, the use of
biomarkers could improve the rate of success in late-stage clinical trials (up to 70%
of cancer drugs that pass phase 2 clinical trials fail to pass phase 3). The FDA has
approved multiple cancer treatments that required a companion diagnostic test for a
patient to take the drug (a few examples of these are vemurafenib, combined with
the BRAF V600E mutation test for metastatic melanoma, and crizotinib, combined
with the ALK gene rearrangement test for late-stage non-small cell lung cancer).
Roche is recognized as one of the industry leaders in molecular diagnostics, and
Paul Brown, CEO of Roche Molecular Diagnostics, indicated the importance of
having companion diagnostics during clinical trials in a 2011 interview with Biotech
SF: “Internally, between diagnostics and pharma, we have about 160 projects now
where we have companion diagnostic or biomarker with a project. It’s basic to the
structure having these two pieces under the same umbrella.”

Valuation Conclusion
CGIX has a robust pipeline of proprietary cancer tests that should continue to grow
and improve over time, both through the Company’s internal R&D and its

9

partnerships such as the joint venture with Mayo Clinic, OncoSpire Genomics. The
molecular diagnostic tests that CGIX currently has out on the market have been
proven through clinical testing to be superior to the current standard of testing. In
addition to this, the Company has been expanding their sales pipelines through
multiple partnerships that allow it to sell to community hospitals and laboratories in
the United States, pharmaceutical and biotech companies in clinical trials, and
various developed and emerging countries around the globe. The molecular
diagnostic testing market is projected to increase substantially over the next few
years, and CGIX is poised to take advantage of the growth both through the
development of new therapies using biomarkers and hospitals and doctors
attempting to make more accurate decisions while saving time and lowering costs.
In addition to this, strong M&A activity in the industry should ensure that CGIX
trades at a healthy P/S multiple, and this should persist as big pharmaceutical and
biotech companies look to acquire molecular diagnostic companies, given the
growing importance of biomarkers in both treating cancer and developing new and
improved therapies.
To determine a revenue ramp for CGIX, we believe the best two comparables to be
Genomic Health (Oncotype DX Breast Cancer test) and Genoptix (acquired in
January 2011 for $470 million, blood and bone marrow cancer tests). Both of these
companies exhibited similar revenues to CGIX in 2005, and subsequently ramped
up their revenues rather significantly following the launch of their proprietary
cancer tests.
Genoptix Inc. (GXDX)
Net Revenue
Selling and Marketing Exp.
YOY Revenue Growth Rate

2005
$5.19
$4.23

2006
$24.02
$6.26
363%

2007
$59.33
$11.65
147%

2008
$116.17
$20.07
96%

CAGR
117.51%

2005
$5.20
$15.35

2006
$29.17
$24.63
461%

2007
$64.03
$36.46
119%

2008
$110.58
$46.67
73%

CAGR
114.72%

Source: Company filings, in millions

Genomic Health Inc. (GHDX)
Net Revenue
Selling and Marketing Exp.
Source: Company filings, in millions

We believe that CGIX has the potential to match the above revenue ramp, with one
caveat being that achieving this sales ramp is likely dependent on receiving
sufficient financing. This will be needed in order to spend additional funds on sales
and marketing; a lower budget will likely result in lower revenue growth. Based on
our discussions with management, we believe that CGIX will look to keep costs
under control, and thus we believe that CGIX’s spending on sales and marketing
will more closely resemble GXDX rather than GHDX. However, relative to the
above companies, CGIX has a larger portfolio of molecular diagnostic tests, giving
the potential for larger test volume sales. Additionally, international sales should
exhibit strong growth, driven by its partnerships with Nikon Instruments and rapidly
increasing demand for molecular diagnostic tests in emerging economies. Also, the
rapid increases in the use of companion diagnostics in clinical trials gives CGIX a

10

stronger additional revenue stream that was not available to GXDX and GHDX
from 2005-2008. Our revenue projections for CGIX up through 2016 are listed
below:
Cancer Genetics (CGIX)
Net Revenue
Selling and Marketing

2012
$4.30
$1.40

2013E
$7.53
$2.50
75%

2014E
$18.81
$7.50
150%

2015E
$46.09
$14.50
145%

2016E
$101.40
$27.20
120%

CAGR
88.15%

Source: Company filings, RedChip estimates, in millions

Ticker

Name

Price

Market Cap

P/E

P/S

P/B

Revenue (ttm)

Rev/Share (ttm)

TROV

TROVAGENE INC

7.13

134.4

N/A

247.5

N/A

0.54

0.04

EXAS

EXACT SCIENCES CORP

9.83

695.0

N/A

167.7

4.5

4.14

0.07

ROSG

ROSETTA GENOMICS LTD

3.21

31.5

N/A

91.9

1.1

0.29

0.04

ATOS

ATOSSA GENETICS INC

2.04

31.8

N/A

44.6

3.8

0.71

0.05

FMI

FOUNDATION MEDICINE, INC

30.42

826.6

N/A

42.7

15.4

19.34

1.14

GNMK

GENMARK DIAGNOSTICS INC

12.04

394.1

N/A

12.7

8.4

31.01

0.97

GHDX

GENOMIC HEALTH INC

29.70

909.5

519.4

3.7

6.5

245.86

7.83

SQNM

SEQUENOM INC

2.55

294.2

N/A

2.3

N/A

129.87

1.13

517.0

44.7

5.5

N/A

18.9

13.8

5.37

0.92

Median
CGIX

CANCER GENETICS INC

16.98

101.3

Source: Bloomberg, Company Filings, As of October 10, 2013

While the P/S multiple is heavily skewed by companies that only generate limited
revenue, we believe that the multiples of more developed molecular diagnostics
companies (SQNM, GHDX, GNMK) provide a good proxy for acceptable trading
multiples. We have decided to take near the median P/S from those 3 companies
(4.0x) to value CGIX.
Since there is strong M&A activity in the industry we also turn to recent transactions
to better estimate a P/S multiple:
Target

Acquirer

EV/Revenue

Enterprise Value of Deal

Ttm Revenue at time of
Acquisition

Gen-Probe

Hologic Inc.

6.4x

3,757.47

586.58

Genoptix

Novartis AG

1.6x

318.09

196.35

Celera

Quest Diagnostics

2.7x

340.84

128.14

Clarient

GE Healthcare

4.1x

447.08

110.12

Source: Bloomberg, dollar values in millions

While the transaction multiples also encompass a wide range, we believe that given
the strengths for CGIX that we have noted throughout the report, the Company
deserves to be valued at a 4.0x P/S multiple. We apply this to our 2016 revenue
estimate of $101.4 million. Discounting this total by 20% per year and applying a
4.0x P/S multiple, we derive a 2016 fair company value of $257.1 million. Research
by Benchmark Co., LLC assigned a 25% per annum discount rate to CGIX
comparable Exact Sciences (EXAS); given that CGIX has a large portfolio of cancer

11

tests (EXAS only has one test for colorectal cancer), and CGIX also receives
revenue from clinical trial services (EXAS does not), we believe that CGIX
deserves a lower discount rate. We also understand the possible need of financing
the Company is likely to encounter in the coming years as the Company continues to
expand its product line. If CGIX completes its proposed $15 million equity raise
with Aegis, its shares outstanding should increase to approximately 5.6 million.
Given the probability that CGIX may complete additional equity raises in the future
to support increase in sales and marketing and R&D expenses, we estimate total
year-end 2016 shares outstanding of 9.6 million. This gives us a final near-term
target price per share of $26.75.
In addition to the above revenue projections, we believe that investors can receive
further upside from the Company’s 50% ownership in OncoSpire Genomics. The
joint-venture’s goal is to develop diagnostic cancer tests using next-generation
sequencing; as this JV is further developed with Mayo Clinic, the potential for
cutting-edge IP could make this an attractive buyout target for a large
pharmaceutical, biotech, or medtech firm. This upside is not currently reflected in
our target price.

Management & Board
Raju S.K. Chaganti, Ph.D., Founder & Chairman
Dr. Chaganti is the Company’s founder and has served as the chairman of its board
of directors since inception. Dr. Chaganti is an internationally recognized leader in
cancer cytogenetics and molecular genetics. He is a co-discoverer of patents for the
cloning of two genes rearranged in lymphoma translocations, BCL6 and BCL8, and
an additional two patents for the detection of translocations for the FISH
classification of kidney cancers. Dr. Chaganti currently is the incumbent of the
William Snee E. Chair at the Memorial Sloan- Kettering Cancer Center, where he is
on the faculty of the Department of Medicine and Cell Biology Program. He is a
professor at the Gernster Sloan- Kettering Graduate School of Biomedical Sciences
at Cornell University Medical College. He was the chief of Memorial SloanKettering Cancer Center’s cytogenetics service, which he established in 1976 as one
of the earliest genetically-based cancer diagnostic services in the country.
Dr. Chaganti received a Ph.D. in biology (genetics) from Harvard University
Graduate School of Arts and Sciences and completed his post-doctoral training at
the Medical Research Council of Great Britain. Additionally, he completed a
sabbatical in the Department of Tumor Biology at Karolinska Institute Stockholm,
focusing on experimental murine and tumorgenesis as well as immunology. Dr.
Chaganti is American Board of Medical Genetics certified in medical genetics, with
a subspeciality in clinical cytogenetics.


12

Panna Sharma, Director, President & CEO
Mr. Sharma became a member of the Company’s board of directors and its Chief
Executive Officer in May of 2010. Mr. Sharma was at TSG Partners, a specialty life
sciences consultancy and advisory company, from 2001 to 2010, where he was the
Managing Partner and founder. At TSG he led the development of strategic
initiatives, corporate growth strategy and corporate turnarounds for both public and
private companies. He also led over 70 buy- and sell-side transactions for life
sciences, healthcare and biopharma companies. At TSG, he established the Global
Diagnostics Index, the Global Biotools Index and several other life science capital
markets indices that are still used today.
Prior to founding TSG, Mr. Sharma was the Chief Strategy Officer for iXL
Enterprises, Inc. (“iXL”), a public e-business consultancy where he led strategy
development and acquisitions activity and was part of the management team that
aided in taking the company public in June 1999. At iXL, he also managed the
specialty e-business strategy practices group that grew from under $4 million in
revenue in 1998 to over $75 million in 2000. From 1996 to 1998, Mr. Sharma was a
partner at Interactive Solutions, Inc., a marketing and strategy consultancy focused
on health care and financial services in Cambridge, Massachusetts, that was sold to
Omnicom, Inc., one of the largest global market analysis and marketing companies.
Prior to that time, Mr. Sharma served as a consultant to Putnam Investment
Management, LLC and Bank of America Corporation. Mr. Sharma has also served
on the board of directors of EpicEdge, a health care and government focused IT
services firm, from 2001 to 2003 and as chairman of the Advisory Board for
EndoChoice, a global leader for the gastrointestinal treatment market from 2008 to
2010. Mr. Sharma attended Boston University from 1987 to 1992 in the University
Professor’s Program.
Elizabeth Czerepak, CFO
Ms. Czerepak brings 18 years of pharmaceutical industry experience and nine years
of venture capital experience to Cancer Genetics. Elizabeth co-founded Bear
Stearns Health Innoventures (BSHI), a $212 million venture capital fund that led
investments in 13 biotechnology companies, seven of which she served as a board
member. Concurrent to BSHI, she held the position of Managing Director of Bear,
Stearns & Co., and later JPMorgan, where she was an NASD Registered
Representative. Earlier, Elizabeth held senior positions in licensing, business
development, and finance at BASF Pharma, Hoffmann-La Roche, and Merck & Co.,
where she led or supported over 30 licensing and M&A transactions, including
Roche’s acquisition of PCR technology from Cetus, and the licensing of the P53
gene from Johns Hopkins University. Elizabeth holds an MBA from Rutgers
University and a B.A. magna cum laude from Marshall University and is a member
of the Licensing Executives Society.


13

Jane Houldsworth, Ph.D., VP of R&D
Dr. Houldsworth came to CGIX in 2007. She has a long standing interest in the
biology and genetics of lymphoma and male germ cell tumors, with over 20 years’
experience in translational research. Dr. Houldsworth has published more than 50
peer-reviewed papers and 15 chapters. She continues to consult on academic
research projects and is a reviewer for multiple scientific journals. She is an active
member of the American Society of Hematology and American Association for
Cancer Research. Dr. Houldsworth was awarded several grants from the National
Institutes of Health, Lance Armstrong Foundation and other private foundations. In
2005, Dr. Houldsworth attained her New York State certificate of qualification as a
laboratory director for oncology, molecular and cellular tumor markers. Before
coming to CGIX, Dr. Houldsworth was an Associate Attending Geneticist and an
Associate Laboratory Member at Memorial Sloan-Kettering Cancer Center in Dr.
Chaganti’s laboratory.
Lan Wang, M.D., Medical Director
Dr. Wang came to CGIX in 2007. Her career focus is in diagnostic
hematopathology, centered on lymphomas and leukemias. Dr. Wang is an active
member of the Society of Hematopathology, United States and Canadian Academy
of Pathology and the College of American Pathologists. Her work has been
published in numerous peer-reviewed publications. Dr. Wang is certified by the
American Board of Pathology in Anatomical and Clinical Pathology, as well as
Hematopathology. In New Jersey, Dr. Wang holds a Medical License and
Bioanalytical Laboratory Director License from the Board of Medical Examiners.
She also has a Certificate of Qualification from New York State as a Laboratory
Director in Histopathology, Cytopathology, Hematology, Immunohematology,
Oncology-Molecular and Cellular Tumor Markers, and Cellular ImmunologyMalignant Leukocyte Immunophenotyping. Dr. Wang holds the position of Staff
Pathologist/Hematophathologist and serves as a cancer liaison physician at Chilton
Memorial Hospital in New Jersey.
Weiyi Chen, Ph.D., HCLD (ABB), Molecular Diagnostics Director
Dr. Chen came to CGIX in 2005. Her scientific focus has been on the identification
and characterization of genomic alterations in B-cell lymphoma and their prognostic
implications using modern molecular techniques, including microarrays. While at
MSK, she was trained in the Molecular Diagnostic Laboratory at the New York
Presbyterian Hospital and Memorial Sloan-Kettering Cancer Center. Dr. Chen is
certified as a High-complexity Clinical Laboratory Director (HCLD) from the
American Board of Bioanalysis (ABB), and holds a certificate of qualification as a
laboratory director from the New York State Department of Health. She is an active
member of the Association of Molecular Pathology.


14

Pal Singh-Kahlon, Ph.D., FACMG, Cytogenetics Director
Dr. Singh-Kahlon joined CGIX in 2010 and brings more than 30 years of experience
in clinical cytogenetics. He has over 20 years of experience in director positions,
including seven years in cancer, at leading commercial cytogenetics laboratories,
LabCorp and Genzyme, and earlier at the University of California School of
Medicine in San Francisco. Dr. Singh-Kahlon is an active member of the American
College of Medical Genetics, American Society of Human Genetics and the
Association of Molecular Pathology.
Cory Hickmon, Director of National Clinical Sales
Mr. Hickmon brings over 23 years of oncology sales and sales leadership experience
to CGIX. His focus for the past 21 years has been the esoteric oncology testing
market, with much of his career devoted to building and leading successful sales
teams in the rapidly growing genetic and genomic space. Mr. Hickmon began his
career with Impath, a recognized leader in the area of oncology and pathology
esoteric testing. After several promotions, he became the Midwest Regional
Manager in 1998, where he was in charge of all sales activities for one third of the
U.S. market. In this role, he was involved in one the earliest targeted therapy
marketing campaigns in the country, the launch of Her-2/neu which qualified
patients for Herceptin therapy. In 2004, Impath was acquired by Genzyme Genetics,
and Mr. Hickmon was promoted to Southwest Regional Director. In this role, he
oversaw two unique sales forces; one focused on oncology, the other in the growing
area of reproductive genetic and molecular testing. His skills in building out sales
teams were used as Genzyme went through rapid expansion during this time. In
2010, Genzyme Genetics was purchased by LabCorp. Cory graduated from the
University of Houston with a B.B.A. in Finance.
Edmund Cannon, Director
Mr. Cannon is founder and President of the Clinical Research Center of Cape Cod,
which specializes in finding institutional review board approved, consented
specimens for the diagnostics and pharmaceutical industries, and in setting up
studies to support FDA submissions for pharmaceutical and biotechnology
companies. Previously, Mr. Cannon was a marketing and operations consultant for
Franey Medical Labs. Mr. Cannon also formerly had the most national sales for
Pharmacia Diagnostics Inc., and was a vice president and co-founder of Alletess,
Inc. Mr. Canon has a degree from Boston State College and attended a Master’s
program at Providence College.
Keith Brownlie, CPA, Director
Keith Brownlie, CPA has been a director since July 24, 2013. Mr. Brownlie
currently serves as a member of the Board of Directors of Epicept Corporation, a

15

publicly traded, specialty pharmaceutical company focused on the clinical
development and commercialization of pharmaceutical products for the treatment of
cancer and pain, a position he has held since April 2011. From 1974 to 2010, Mr.
Brownlie worked with the accounting firm of Ernst & Young LLP where he served
as audit partner for numerous public companies and was the Life Sciences Industry
Leader for the New York metro area where he was involved with over 100 public
and private financings and M&A transactions. Mr. Brownlie received a BS in
Accounting from Lehigh University and is a Certified Public Accountant in the state
of New Jersey. Mr. Brownlie co-founded the New Jersey Entrepreneur of the Year
Program and was Vice President and Trustee of the New Jersey Society of CPAs. In
addition, he served as accounting advisor to the board of the Biotechnology Council
of New Jersey.
John Pappajohn, Director
Mr. Pappajohn is a pioneer in the venture capital industry. In 1969, Mr. Pappajohn
founded Equity Dynamics, Inc., a financial consulting entity, and Pappajohn Capital
Resources, a venture capital firm, both in Des Moines, Iowa. Mr. Pappajohn has
been involved in over 100 start-up companies and has served as a director of over 40
public companies, many in the bioscience and health-related industries. He currently
serves on the boards of the following public companies: American CareSource
Holdings, Inc., since 2004, ConMed Healthcare Management, Inc. since 2005, and
CNS Response, since 2009. Previously, Mr. Pappajohn served on the boards of
PharmAthene, Inc., from 2007 until July 2011, Careguide, Inc., from 1995 until
2010, and SpectraScience, Inc., from 2007 until 2009. Mr. Pappajohn has a BSC
degree in business from the University of Iowa.
Andrew Pecora, M.D., Director
Dr. Pecora currently serves at the John Theurer Cancer Center at Hackensack
University Medical Center as Chief Innovations Officer, Professor and VP of
Cancer Services. From 2001 to 2011, Dr. Pecora served as the Chairman and
Director of the John Theurer Cancer Center. Since 1996, he has been Managing
Partner of Northern New Jersey Cancer Associates, which is a private physicians
practice group affiliated with Hackensack University Medical Center. Since August
2011, Dr. Pecora has served as Chief Medical Officer of NeoStem, Inc., which
acquired Progenitor Cell Therapy, LLC in 2011. Prior to the acquisition, Dr. Pecora
had served from 1999 to 2011 as Chairman, CEO and Chief Medical Officer of
Progenitor Cell Therapy and as a member of the board.
Dr. Pecora has also been a Professor of Medicine at the University of Medicine and
Dentistry of New Jersey since 2004. Additionally, Dr. Pecora is a scientific advisor
for numerous state, national and international organizations. He is a Diplomate of
the American Board of Internal Medicine, subspecialty of hematology and
subspecialty of oncology, a member of the National Blue Cross and Blue Shield

16

Quality Centers for Transplant Experts Panel, a fellow of the Academy of Medicine
of New Jersey, a fellow of the American College of Physicians and a member of the
American Society of Bone Marrow Transplantation, American Society of Clinical
Oncology and American Society of Hematology. Dr. Pecora co-founded and served
as Chairman of Amorcyte, Inc., a biotech company developing cell therapies for
cardiovascular disease. He serves as chairman of the board of Tetralogics, Inc., a
company developing small molecules to treat cancer. He has served on the board of
directors of the American Society of Bone Marrow Transplant and Cytotherapy and
was a member of Accreditation Committee of the Foundation for Accreditation of
Hematopoietic Cell Therapy. He has been a member of several National Heart, Lung
and Blood Institute/National Cancer Institute state of the science meetings in
transplantation and stem cell therapies. Dr. Pecora is actively involved as principal
investigator and coinvestigator in many national research studies. He has been
invited to present his work at various scientific meetings and continues to contribute
to the published literature. Dr. Pecora received his medical degree from the
University of Medicine and Dentistry of New Jersey. He went on to complete his
medical education in internal medicine at New York Hospital and in hematology
and oncology at Memorial Sloan- Kettering Cancer Center. He is board certified in
internal medicine, hematology and oncology.
Franklyn Prendergast, M.D., Ph.D., Director
Dr. Prendergast is the Edmond and Marion Guggenheim Professor of Biochemistry
and Molecular Biology and Professor of Molecular Pharmacology and Experimental
Therapeutics at Mayo Medical School and the director of the Mayo Clinic Center
for Individualized Medicine. From 1994 to 2006, he served as a director of Mayo
Clinic Cancer Center. He has held several other teaching positions at Mayo Medical
School since 1975. Dr. Prendergast has served for the NIH on numerous study
section review groups; as a charter member of the Board of Advisors for the
Division of Research Grants, now the Center for Scientific Review; the National
Advisory General Medical Sciences Council; and the Board of Scientific Advisors
of the National Cancer Institute. He held a Presidential Commission for service on
the National Cancer Advisory Board. Dr. Prendergast also has served in numerous
other advisory roles for the NIH and the National Research Council of the National
Academy of Sciences, and he is a member of the board of directors of the
Translational Genomics Research Institute and the Infectious Disease Research
Institute. Dr. Prendergast has served on the board of directors of Eli Lilly & Co.
since 1995 and is a member of the board’s science and technology and public policy
and compliance committees. He also currently serves on the boards for DemeRx,
Inc., a private drug development company, and Ativa, a diagnostic technology
company. Dr. Prendergast obtained his medical degree with honors from the
University of West Indies and attended Oxford University as a Rhodes Scholar,
earning an M.A. degree in physiology. He obtained his Ph.D. in Biochemistry at the
University of Minnesota.


17

Tommy Thompson, Director
Mr. Thompson is the former Health and Human Services Secretary of the United
States and served as the Governor of Wisconsin for four terms. Mr. Thompson is
building on his experience as Health and Human Services Secretary to develop
innovative solutions to the health care challenges facing American families,
businesses, communities, states and the nation as a whole. From 2005 until 2009, he
served as a senior advisor at Deloitte & Touche and the founding chairman of the
Deloitte Center for Health Solutions, which researches and develops solutions to
some of our nation’s most pressing health care and public health related challenges.
Since 2005, Mr. Thompson has served as a senior partner at the law firm of Akin,
Gump, Strauss, Hauer, & Feld LLP. Mr. Thompson has been chairman of the board
of Logistics Health, Inc. since January 2011, and served as president from February
2005 to January 2011. He also serves on the board of directors of the following
public companies: CareView Communications, Inc., as chairman since 2005,
Centene Corporation, C.R. Bard, Inc., since 2005 and United Therapeutics
Corporation, since 2010. Mr. Thompson was formerly a director of AGA Medical
Corporation, CNS Response, PURE Bioscience, SpectraScience, VeriChip
Corporation and Voyager Pharmaceutical Corporation. Mr. Thompson received his
B.S. and J.D. from the University of Wisconsin-Madison.

Additional Information

Recent press releases
SEC filings


18

About RedChip
RedChip Companies, an Inc. 5000 company, is an international small-cap research, investor
relations, and media company headquartered in Orlando, Florida; with affiliate offices in San
Francisco, Seoul, Hong Kong and Singapore. RedChip delivers concrete, measurable results
for its clients through its extensive global network of small-cap institutional and retail investors.
RedChip has developed the most comprehensive platform of products and services for small cap companies, including: RedChip Research(TM), Traditional Investor Relations, Digital
Investor Relations, Institutional and Retail Conferences, "The RedChip Money Report"(TM)
television show, Shareholder Intelligence, Social Media and Blogging Services, and Webcasts.
RedChip is not a FINRA member or registered broker/dealer.
None of the profiles issued by RedChip Companies, Inc., constitute a recommendation for any
investor to purchase or sell any particular security or that any security is suitable for any
investor. Any investor should determine whether a particular security is suitable base d on the
investor's objectives, other securities holdings, financial situation needs, and tax status.
RedChip Companies, Inc., employees and affiliates may maintain positions and buy and sell
the securities or options of the issuers mentioned herein. All m aterials are subject to change
without notice. Information is obtained from sources believed to be reliable, but its accuracy
and completeness are not guaranteed. Cancer Genetics, Inc. ("CGIX") is a client of RedChip
Companies, Inc. CGIX agreed to pay RedChip Companies, Inc., a monthly cash fee for twelve
(12) months of RedChip investor awareness services. Investor awareness services and
programs are designed to help small-cap companies communicate their investment
characteristics. RedChip investor awareness services include the preparation of a research
profile(s), multimedia marketing, and other awareness services.
Additional information about the subject security or RedChip Companies Inc. is available upon
request.
To
learn
more
about
RedChip’s
products
and
services,
visit
http://www.redchip.com/visibility/productsandservices.asp, call 1 -800-RedChip (733-2447), or
email info@redchip.com.
Company Contact Info:
Cancer Genetics, Inc.
201 Route 17 North, 2 nd Floor
Rutherford, NJ 07070
(201) 528-9200
www.cancergenetics.com

Investor Contact Info:
RedChip Companies, Inc.
500 Winderley Place, Suite 100
Maitland, FL 32751
(407) 644-4256
www.redchip.com


Cgix profile 20131010

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Destacado

Destacado (18)

Similar a Cgix profile 20131010

Similar a Cgix profile 20131010 (20)

Más de RedChip Companies, Inc.

Más de RedChip Companies, Inc. (20)

Último

Último (20)

Cgix profile 20131010