Jakub Sram of Fulgent Genomics

I'm from Fulgent Genetics, and we're in Temple City, about eight miles away from here. I just want to give you a quick industry overview. Perfect, thanks. So we do genetic testing. The market is about 3.8 billion dollars in 2015, and it's grown with a pretty healthy growth. By 2021, we're looking at about 6.7 billion dollars. What's interesting here is that it's global, but also there were about 700 laboratories that do what we do. Overall, they're looking at maybe six, seven, eight, nine, ten thousand genes, and you have about 63,000 different genetic tests. At Fulgent, we have probably the largest catalog of genetic tests in the world. Many of these labs, perhaps 90% of them, you could put them in one catalog and their catalog of genetic tests still would not be bigger than what we have. So what we were able to do at Fulgent is create something like a Lego for genetic testing. If you're a clinician, you can go and if you're interested in a three-gene panel, you just design a three-gene panel, you can order it, submit samples, and three or four weeks later you have the results. It's very customizable. So we look at clinicians, genetic counselors, medical geneticists, pediatricians, neurologists, cardiologists—those are all our clients. We sort of look at them as painters, and whatever color they like, we can make them whatever color they need. We have some unique technologies that enable us to do this. There's some chemistry we have, some proprietary bioinformatics, which is huge in today's world. Anyone can buy a sequencer, but it's really the data—how quickly you can identify what you're looking for. When we put our bioinformatics and our chemistry together, we can make it very affordable, or another word for it, we can make it pretty cheap and still be productive and profitable.

A little bit about Fulgent: we started the company in 2011, and I think since 2012 we were profitable. What's really behind Fulgent is our experts. Let me touch a little bit on Ming. Ming is our President and CEO, and he's the founder of Fulgent. Ming started a company around 1990 on biometrics—it was basically fingerprint scanning. Anytime you go through customs and do that fingerprint scanning, that's his technology. He grew it to the top of the market; they were about a 3.5 billion dollar company, and he sold it in 2010 to 3M, and they went public in 2004. So that's one of our founders. The other founder is Harry Gao. Harry Gao comes from City of Hope, where I spent about 12 years. I worked with Harry for a long time. Harry was the director of our sequencing core and also director of our molecular diagnostic laboratory. So really, Fulgent is a combination of biometrics IT and next-gen sequencing. We have people in our field that are bioinformaticians, genetic counselors, geneticists, scientists. We have all positions open. We have over 700, maybe 800, clients throughout the world. These are just some all over the world; we get samples. Our mission is really to provide flexibility and affordability. We want to give patients the right tests at the right time and make sure it's really personalized. So what's why Fulgent? We do have very broad, flexible testing, and I'll show you in a minute some proprietary technology. We have a proven business model—we're profitable—and really, we have a very, very strong management team of people who have created billion-dollar companies before.

This is sort of an overview where you have the next-gen sequencing, a fusion of next-gen sequencing expertise, diagnostics expertise, IT, biometrics. The people themselves—interesting that software engineers who created the engine for biometrics, when you do your fingerprint scanning and you basically scan someone, within a fraction of a second they can identify it's Jakub. Actually, Ming's technology was able to identify all the hijackers from 9/11 very quickly, in a fraction of seconds. But later on, the system didn't catch them, but his technology was able to identify who they were, and they were on a list. So the same people who created that engine, the IT behind it, the software engineers, they are with us at Fulgent. So what do we have? Where do we differentiate from traditional labs, from all the 700 labs out there? We have a very fluent content. We have about 18,000 genes in our catalog. Those are the—if you think about it, that's the Lego when you play with kids, it's the Duplo or Lego. So these 18,000 pieces that you have, you can build anything you want. We also have some unique technologies that when we sequence the genes, not only do we detect single base changes and insertions and deletions, but we can also do copy numbers and we can look for translocations. When we find a copy number, we know exactly what part of the gene it is. So you can think of it as a digital karyotyping. We have about 18,000 genes right now. It says 200 panels, but we have over 400 gene panels. We do anything from single genes to any combinations. We have these 400 preset panels. We do exomes and we do genomes. Our capacity is tremendous. We can do about 330 genomes a week to sequence. So if you need any genomes sequenced, we would be very happy to help you out with that. For cancer testing, we have a very broad menu from breast, brain tumors, renal, thyroid, colorectal, prostate. We do have all the tests for cardiology, neurology—it's a very big area. I just highlighted some of them here, but it's really bleeding disorders, hemophilia, hearing, liver, lung, metabolics, renal, and so on. We also have some new tests for copy numbers which really replaces microarrays. It's very fast, pretty amazing tests we have. So overall, you can have sequencers, but what our platform does with the technology that we have is very highly automated. When we get the samples and do the extractions, it's a very highly automated process how we sequence things, and then we have an automated process for report generation. We have some chemistry and this adaptive software which helps us to screen through data. Once we see some things, the next time we see it, we can do it faster and faster. So the more we sequence, the more reports we do, the faster we can do the reports, which lowers the cost too. So that's kind of cool.

Just a few things to highlight about Fulgent: we went public a few months ago. We have two locations—actually, we have several locations, but we have two labs. One lab is here in LA, the other lab is in China. We're building another lab in North America. There are about 80 people here in Temple City, and about 80 or 100 people in China. That market is very fast-growing, and there are tremendous opportunities. We're profitable. What else can I tell you? Our business is from around the world. That's sort of the highlights of Fulgent. So I'll take any questions you may have, or you can email me or just talk to me after the presentation. Thank you so much.