#10101101000101 10110100010 11011010001051051010000 Theranos A Presentation For Investors June 1, 2006#2Theranos Theranos, Inc. > Our immediate goal is to become the standard for improving the efficacy and risk/benefit and safety profile of every therapy. > Initial Market: Phase IV Clinical trials > Product Platform: > System: Cartridges, Readers, Informatics Service > Founded 2003 > Menlo Park, CA > 50 Employees Confidential & Proprietary#3Theranos Theranos Today + 6 Deals, 5 companies: $6-12M for validation phase + 6 Phase IVs: $20-$50M each + $120-$300M revenue in next 1.5 years > 10 companies and 1 government agency: 15 additional deals > $21-52M for validation + $300-$750M for phase IVS * Existing deals: $120M - $1.5Bn in revenue > Improve label, validate efficacy and preempt liabilities TATT 0105101 Confidential & Proprietary M#4Theranos Management Elizabeth Holmes, President and CEO >Left Stanford Chemical and Electrical Engineering to found Theranos, also Genencor, Genome Institute Singapore > Howard Bailey, CFO > Former CFO who took QED and Photon Dynamics public, also CFO Occam, C-Cube, and Controller, Intel Diane Parks, CCO > Former Senior Vice President, Biotherapeutics and Managed Care, Genentech, also Vice President, Marketing, Aventis John Howard, Senior VP, Products >Former President, Panasonic Semiconductor, also President, IBM Microelectronics Division > Dr. lan Gibbons, Senior Director Assay Development > Former Senior Director, Syva, ACLARA, Biotrack, AmCell, First Medical > Tim Kemp, Senior Director Informatics Systems > Former lead systems engineer, IBM, Embedded Systems Board of Directors: > Donald L. Lucas, Chairman of the Board > > 46-year veteran of the venture capital business Elizabeth Holmes CEO, Theranos > Peter Thomas > Founder and Managing Director, ATA Ventures; General Partner, Institutional Venture Partners Channing Robertson > Stanford Senior Associate Dean of Engineering 1111010ceto1101 10110100010101010 110110100010nen Confidential & Proprietary#5Theranos What is our system? 110110100010110111000 01010 1000101111010004 Sound Label: M 1.30-10 100E-12 1.00-11 www.theranos.com Theranos 1.006-10 Concentration (M 1006-05 15551016115501 Confidential & Proprietary 5#6Theranos Technology ****** FREE 1100 Cartridge Theranos Products Reader Informatics Confidential & Proprietary 6#7Theranos Theranos ABCSTM: Ambulatory Biolnformatics Communications System Pharmacy HMO Home ** Telecommunications Videoconferencing Partner Theranos Informatics Effective narrow range therapy through post-prescription monitoring of the total available patient base. Confidential & Proprietary#8Theranos Product Features + Use: Simultaneous quantitative measurement of drugs and treatment-related biomarkers + Sample Size: 5-10μL of blood + Time: Multiplex assays complete in < 30 minutes + Calibration/Control: On board with each measurement > Operating Principle: Chemiluminescent/Immunoassay + Dynamic Range: Low picogram/mL - high microgram/mL + Accuracy: Results comparable to "gold standards" + Precision: Average total 5-7% Coefficient of Variation or better + Data Reporting: Immediate upload from secured server > Attractiveness: New assays can be developed and implemented within about three months and can be fully developed at ISO 9000 standards within about six months. Confidential & Proprietary 8#9Theranos Value Proposition ➤Increase pharmaceutical sales by improving the label of a compound 1101011000 010110102010TIDER 01011010 > Remove black boxes >Safely sell to total available patient base ➤Introduce existing compounds to market (rather than relying heavily on gene sequencing and new discoveries) ➤Increase the number of patients enrolling in trials and reduce drop- outs Increase compliance Confidential Proprietary MERUPA#10Theranos First course of infusion chemotherapy with Theranos monitoring Parameter -1.0 1.5- First course of treatment (Drug level too high) Time, hours 40 First course dose First course drug level 5.0 Standard dose rate; patient is not eliminating drug rapidly and drug concentration increases over the target level to a toxic level. Confidential & Proprietary 10#11Theranos Second course of infusion chemotherapy with Theranos monitoring Parameter 110. Dostl 110110100010119 The 1000 60110100010110 1101000 25- 15- 0.5- no 0.0 Second course (Drug dose reduced) Time, hours -Second course dose Second course drug level Drug level targe 5.0 7.0 Same patient, second course of therapy; dose is lowered based on Theranos results >> drug level is at target. Confidential Proprietary 11#12Theranos Dose Customization Parameter 010110100010101 HOSED 100010110 1.0 Drug dose adjusted in course Time, hours First course, drug dose conected in course -Drug level Drug level target 4.0 50 Same patient but in the first course rapid (within one hour) feedback from Theranos monitor leads to a decision to stop the infusion. Drug level drops from toxic to target. Confidential & Proprietary 12#13Theranos Real-time PK/PD Monitoring 110 110TION 10110100010110 Parameter Value -10.0 Scenario: Drug effective; Toxicity observed; Dosage reduced; Toxicity reduced to acceptable level 14 0.8- 0.6- 10.2 0.0 Drug Dose Drug Level Effect marker 20.0 Time, days -Toxicity marker -Tox. Alert Level THAT \www.wwwwwwww.k 30.0 40.0 Confidential & Proprietary 13#14Theranos Total Available Market: Phase IV Clinical Trials > Phase IV Clinical Market = $39 Billion per year > Number of ongoing trials per year = 600 to 800 > Average Theranos Revenue per trial = $50M > $7,500 "Information Fee" per patient for every four months > Average: 2,000 to 10,000 patients per trial 11011010001011017 010110100010110150 0101101000101101 Confidential & Proprietary 14#15Theranos Total Available Market: Pharmaceutical preclinical market > Pre-clinical Market = $10 billion per year > $5M annual revenue per research group > 133 groups per pharmaceutical company > 15 companies of this size Note: These numbers exclude sales to one of the largest preclinical market segments: academic institutions. Confidential & Proprietary 15#16Theranos Theranos Value Proposition Revenue: > Information fee includes use of • Readers . Cartridges ABCS informatics, patient diary and data integration service + 70% margins + Requisite solution for improving labels or preempting liabilities 011010110001 01100101101 + Cost to pharmaceutical companies is 20-30% less than current costs of equivalent testing through clinicians office Confidential & Proprietary 16#17Theranos Pains In The Existing Marketplace > Adverse Drug Reactions reduce sales and keep some drugs off the market Pharmacogenomic tests (diagnostics) do not eliminate adverse drug reactions > And screen some patients who could safely benefit from a drug AMPER > No mechanism to measure the effect of environmental factors on drug efficacy > No continuous monitoring to determine the correct dosage > Current testing procedures too expensive or impossible for some drugs Confidential & Proprietary 17#18Theranos Theranos Solution 1091010110001 10000 > Monitoring can take place anywhere and can be done by anyone > Monitoring can be as frequent as needed with little increase in cost > Results compare to / beat those obtained by a blood lab > Results are available in minutes > Warning to doctor can be sent within minutes of a test > Effectiveness of dose can be monitored in real time Drug-drug combinations can be monitored to improve the label > Drugs can be prescribed with monitoring devices to prevent ADRs > Instant analysis and availability of related data improve speed and effectiveness of trials F > Consumer WWW increases value of therapy: Informs patients, drives compliance and increases patient adherence to given drug Confidential & Proprietary 11000101 18#19Theranos Drivers for Success > First mover advantage > Combination of several different technologies makes reproducing the solution difficult > Innovation Pipeline: Next generation systems > Strong Customer Base > Speed to Market and Focus on Quality › Patents > Management and Culture Confidential & Proprietary 19#20Theranos Offering + Objective: Pre-IPO transaction to facilitate rapid scaling of Theranos production and manufacturing infrastructure and add to Theranos business development and sales force. CFP 0101101000101 HOT . + Offering: $30M ▪ Existing Investors: $15-20M New Investors: $10-15M Confidential & Proprietary 20#21Theranos Lead investor profiles: + Series A m W ■ # Existing Investors ■ 1011010110001 1995 Chang, Esoom Taipe: Multi-billion dollar distribution group; leading distributors of high technology devices in Asia with headquarters in China and in Taiwan. • Palmieri Trust: Fund lead by Victor Palmieri, business takeover financier; director of numerous high growth companies including Phillips Petroleum, the Pennsylvania Company, Arvida Corporation, Outlet Communications, the William Carter Company, Broadcasting Partners, and Mullin Consulting and a Trustee of The Rockefeller Foundation. * Series B Continental Properties Company: Fund lead by John Schweitizer and Stephen Feinberg, director of MD Anderson, leading center in innovative cancer treatment, cutting-edge research and clinical trials. Draper Fisher Jurvetson: Draper Fisher Jurvetson is a global network of affiliated venture funds with over $3 billion in capital commitments and offices in the major technology centers around the world. Jupiter Partners: Fund lead by John Bryan, limited partner in numerous venture capital and private equity funds and leading investor in companies ranging from Amgen to Hewlett Packard. ATA Ventures (Early Stage Venture Capital) Larry Ellison, Tako Ventures Dixson Doll (Doll Capital Management) Ray Bingham, BJ Cassin, other private equity investors Donald L Lucas fund: Premier Silicon Valley venture capital veteran (note biography in board profile document) Confidential & Proprietary 21#22Theranos Technology: Theranos System versus Today's Lab sa 30 0.8 0.1 B 1000 Concentration af TxB2 (pg/ml.) of 4 10000 C who trin fotolla dotantanna nt fro labo 0101101100010110oring 110110100010110110 500010110010011 1000015 BEKER SEED JED TOOOD moco LOTIOTO Taila On chip Chemiluminescence enables greater sensitivity than the clinical Confidential & Proprietary PC BARRE#23Theranos Computation of results 12000 10000 Signal 8000 Measured signal (sent to Theranos server) 6000 4000 2000 0 1 Derived concentration Dose- response relationship (Factory calibration) 10 100 1000 10000 Progesterone concentration in diluted sample (pg/ml) 100000 Concentration in sample = Signal >> Derived conc. * Dilution factor (fixed) Computation performed at Theranos server Chemistry is calibrated through Theranos server by comparing results con cartridge to known results for calibration wells in database so as to 2001100001011 preempt use of environmentally deteriorated cartridges 00s Confidential Proprietary#24Want more VC/investment startup pitch decks? 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