Next Generation Sequencing (NGS) Market Size, Growth and Trends ( )

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1 Next Generation Sequencing (NGS) Market Size, Growth and Trends ( ) July, th edition Information contained in this market report is believed to be reliable at the time of publication. DeciBio is not soliciting any action based on the information contained in this report. See appendix section for complete disclosures. 1

2 Agenda Introduction Executive Summary NGS Market Size, Segmentation and Growth NGS Competitive Landscape Key NGS Trends & Customer Feedback NGS in the Clinic Appendix 2

3 We forecast that the NGS manufacturer market will reach $3.2B in 2017, and grow at 12% p.a. to $4.6B in 2020, driven by clinical applications (1 of 2) Abstract Launched just over a decade ago, Next Generation Sequencing (NGS)* has transformed the genomics and molecular diagnostics landscape. This technology is used for applications including human whole genome sequencing (WGS), whole exome sequencing (WES; 1-2% of the genome that encodes proteins), targeted sequencing using panels of a few to thousands of genes, and expression profiling (i.e., RNA-Seq). We forecast that the manufacturer market size will reach ~$3.2B in 2017, and grow at 12% p.a. to $4.6B in 2020, driven primarily by adoption from clinical customers worldwide**. NGS is poised to revolutionize not only medical research in academic laboratories and Biopharma, but also the health care landscape and applied markets (e.g., AgBio, food testing). The fourth edition of this report reviews the market size, segmentation, growth and trends of the manufacturer NGS (i.e., excluding NGS services [e.g., Foundation Medicine]) market. We assess the NGS market across 6 segments: Company: Illumina, Thermo Fisher (Ion Torrent), Roche (454 Life Sciences, Genia), Pacific Biosciences, and others*** Product Type: Instruments (including software) and Reagents (including consumables) Customer: Academia, Biopharma, Applied Markets, Clinical, and Other Instrument Type: Workhorse, and Desktop Instruments Geography: U.S., Europe, Japan, Asia/Pacific, and Rest of the world (RoW) Application: Genomics, Oncology, infectious Diseases, Method Development, and Others For each of these segments, we provide the market size and growth from 2014 to 2020, as well as commentary on key growth drivers and moderators. Major factors driving future growth include: Accelerating adoption in clinical settings in general and clinical oncology in particular, most notably driven by liquid biopsy and tumor mutational burden (TMB) testing for immuno-oncology Increased reagent usage on an expanding instrument installed base, across applications Increased adoption of the technology by new customers (e.g., Applied markets such as AgBio, Biopharma for patient stratification during clinical trials) Increased usage for new scientific applications beyond pure sequencing (e.g., [single cell] RNA-Seq, ChIP-Seq, methylation studies) Note: * Including third generation sequencing (single molecule NGS [e.g., Pacific Biosciences, Oxford Nanopore]) ** Based on a comprehensive market model (see slide 12 in downloadable Table of Contents) *** 4 additional players are modelled separately: Oxford Nanopore, BGI, QIAGEN, and Bio-Rad; other players (e.g., NEB, Genapsys) are modelled as a basket 3

4 We forecast that the NGS manufacturer market will reach $3.2B in 2017, and grow at 12% p.a. to $4.6B in 2020, driven by clinical applications (2 of 2) Abstract Key factors moderating growth including: Some excess capacity on the existing installed base Pricing pressure, driven by the decrease cost per Gb, and the availability of more affordable instruments / reagents options Reimbursement uncertainty and pushback in clinical settings limiting access to the vast majority of clinical samples Bioinformatics and data analysis challenges, especially for translational and clinical applications (e.g., clinical variant interpretation), gating access to most potentially addressable samples Low growth in research funding in the developed world We also review interesting market trends, such as: Increased use of long read technologies, most notably PacBio (in the short term), Oxford Nanopore, 10X Genomics Diversification of sequencing options driven by the launch of multiple new platforms by new playesr (e.g., BGI s BGISEQ- 50, QIAGEN s GeneReader, Oxford Nanopore s PromethION) Consolidation of applications on increasingly differentiated platforms, based on their workflow, turnaround time and cost (e.g., human WGS on the X Ten, field-based pathogen sequencing on the MinION) Simplification of the overall workflow, with the launch of more automated instruments (e.g., S5) or automated sample preparation instruments (e.g., Ion Chef, NeoPrep, VolTRAX), saving time, and increasing reproducibility Continued decentralization of sequencing runs driven by the availability of low cost desktop sequencers (e.g., MiSeq), but in turn a centralization of sequencing volumes as high throughput platforms can cost-effectively run 1,000 s of samples Increasing use of service providers offering an alternative to in-house platform adoption, as many customers don t have the budget for or interest in large capital expenditures for such fast-evolving technologies Increasing number of players participating in this fast growing market, typically offering front end (sample preparation) or backend (bioinformatics) solutions, with most targeting (clinical) oncology Increasing competitive intensity on dimensions others than cost per base pair (e.g., workflow, portability, clinical content) Please contact info@decibio.com for more information, and visit our website for a list of relevant companies listed in this report ( Disclaimer: Some of the companies listed in this report may be DeciBio clients or customers 4

5 This report is divided into the following sections Table of Contents Introduction 2 Abstract 3 Table of Contents 5 4 th Edition: What s New? 6 Included / Excluded Technologies 7 Definitions & Methodologies 8 Model Methodology and Example Output 12 Executive Summary 14 Market Bifurcation 15 NGS Market by Customers Type 16 NGS Market by Therapeutic Areas 17 Clinical Oncology Key Trends 18 NGS Market by Product Type 19 NGS Market by Competitors 20 Oxford Nanopore Disruption Potential 21 NGS Market Analysis 22 NGS Market by Customer Type 23 NGS Market by Product Type 29 NGS Market by Instrument Type 32 NGS Market by Application 35 NGS Market by Therapeutic Area 42 NGS Market by Geography 51 NGS Competitive Landscape 53 NGS Market by Competitor 54 NGS Manufacturer Market Positioning 55 Framework for Disruptive Innovation 56 Illumina 57 Thermo-Fisher 62 Roche 66 Pac-Bio 68 Long Read Solutions 72 Other Key Players 73 BGI 74 Oxford Nanopore 77 QIAGEN 81 Genapsys 83 Bio-Rad (GnuBIO) 84 Agilent (LaserGen) 85 NanoString 86 10X Genomics 87 Key NGS Trends 88 Trends by Customer Type 89 Trends by Product Type 90 Trends by Platform Type 91 Key NGS Trends (Cont.) - Trends by Application 92 Trends by Therapeutic Area 93 Trends by Geography 94 Trends by Competitors 95 NGS in the Clinic 96 Overview 97 Oncology 98 NIPT 99 Rare Diseases 103 Appendix 104 Select Players by Workflow Steps 105 NGS Platform Price & Performance 106 Abbreviations 107 Disclosure 110 About DeciBio 112 5

6 If interested in this report, consider the following DeciBio reports Find related DeciBio reports on our website: o Life Sciences Research Tools Market (2017) ( o Single Cell Genomics (SCG): Market Size, Segmentation, Growth, Competition and Trends ( Contact us at info@decibio.com in order to receive information on our DeciBio Marketbook, which provides additional granularity on these markets 6