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|Item 2.02||Results of Operations and Financial Condition.|
On November 15, 2021, SomaLogic, Inc., a Delaware corporation (f/k/a CM Life Sciences II, Inc., a Delaware corporation), issued a press release announcing results for the three-month period ended September 30, 2021 and disclosed an investor presentation, entitled “Harnessing the Power of Proteomics.” Copies of the press release and the investor presentation are furnished with this report as Exhibits 99.1 and 99.2, respectively.
The information contained in this Current Report, including Exhibits 99.1 and 99.2, is being furnished to the Securities and Exchange Commission and, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
|Item 9.01.||Financial Statements and Exhibits.|
|Exhibit Number||Exhibit Description|
|99.1||Press Release issued by SomaLogic, Inc. on November 15, 2021|
|99.2||Investor presentation entitled “Harnessing the Power of Proteomics” dated November 2021|
|104||Cover Page Interactive Data File (embedded within the Inline XBRL document)|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|November 15, 2021||SomaLogic, Inc.|
|By:||/s/ Roy Smythe|
|Title:||Chief Executive Officer|
SomaLogic Reports Third Quarter 2021 Financial Results
|●||Increase of 40% in third quarter revenue to $20.0 million over the corresponding period in 2020|
|●||Increase of 112% in year-to-date revenue to $58.6 million over the corresponding period in 2020|
|●||Raising 2021 full year revenue guidance to $77-79 million|
|●||Addition of 61 new customer accounts expands and diversifies customer base|
|●||Expansion of leadership team with senior life science executives|
|●||Substantial cash and investments of $676 million enabling continued growth acceleration initiatives|
|●||Company to host conference call today at 8:00 a.m. ET|
BOULDER, Colo. (November 15, 2021) – SomaLogic, Inc., a leader in AI-data driven proteomics technology, today reported financial results for the quarter ended September 30, 2021.
“I am pleased to announce third quarter results that exceeded our expectations and complement our growing team as we continue to out-execute on our key priorities and mission to deliver on the power of proteomics,” said Roy Smythe, M.D., SomaLogic’s Chief Executive Officer. “As we continue to expand our commercial capabilities, grow our customer base, and deepen our collaborations with strategic partners, we are updating our 2021 revenue guidance to $77-$79 million. It is early days for our business and the field, and we believe our market leading position, accelerating revenue growth, and $676 million in cash and equivalents uniquely position us to drive advancements in the field and remain the proteomics leader into the coming year and beyond.”
Recent Strategic Highlights
|●||Announced strategic collaboration with UPMC as part of SomaLogic’s SomaSignal™ Proteomics for Precision Medicine Initiative, the first large-scale, clinically focused partnership effort aimed at equipping healthcare providers with the power of proteomic technology to inform decisions at the point of care|
|●||Entered into a collaboration with Twist Bioscience Corporation to discover novel therapeutic targets and antibodies utilizing Somalogic’s SomaScanTM platform|
|●||Strengthened senior leadership team with the appointments of Shaun Blakeman (Chief Financial Officer), Todd Johnson (Executive Vice President of Business Development and Strategy) and Ruben Gutierrez, J.D. (General Counsel)|
Third Quarter 2021 Financial Results
Year-to-date revenue for the period ended September 30, 2021 was $58.6 million, an increase of $31.0 million, or 112%, compared to the corresponding period of 2020. Revenue for the three months ended September 30, 2021 was $20 million, a 40% increase from $14.2 million in the corresponding period of 2020. Growth was driven by a 3x increase in our field sales team over the prior year enabling the addition of 61 new customers and diversifying our foothold into the pharma, research, and academic spaces.
Year-to-date gross margin for the period ended September 30, 2021 has exceeded our expectations at 61%, compared to 55% for the corresponding period of 2020. Margin expansion was driven by significant increases in customer volume with higher selling prices, higher royalty earnings, and collaboration revenue. Gross margin for the three months ended September 30, 2021 was 56% compared to 65% for the corresponding period of 2020. The third quarter of 2020 included a one-time, non-cash adjustment to inventory.
Expenses in research and development grew by $9.1 million in the nine-month period and $8.7M in the three-month period ended September 30, 2021, primarily driven by a one-time, non-cash stock compensation charge of $6.5M for a secondary sale of stock and options as well as incremental headcount hires to drive expansion of our database content. Selling, general and administrative expenses grew by $21.5 million and $12.3 million in the nine- and three-month periods ended September 30, 2021, respectively.
Net loss was $41.4 million in the third quarter of 2021, or a loss of $0.55 per share, as compared to a loss of $7.5 million, or $0.12 per share, in the corresponding period of 2020. For the nine-month period ended September 30, 2021, net loss was $64.2M, or a loss of $1.01 per share, as compared to a loss of $44.1 million, or $0.72 per share in the corresponding period of 2020. Losses included significant non-cash charges. Included within our net losses were $5.7 million and $8.1 million related to a mark-to-market adjustment on the fair value of the earn out liability and warrants; as well as a $6.5 million stock compensation expense for the secondary sale of stocks and options.
Adjusted EBITDA was negative $31.8 million in the third quarter of 2021 compared with negative $5.2 million in the corresponding period of 2020. For the nine-months ended September 30, 2021, adjusted EBITDA was negative $52.3 million compared with a negative $32.7M in the corresponding period of the prior year. Please see the reconciliation of non-GAAP Adjusted EBITDA to net loss below.
Cash, cash equivalents, and short-term investments were $675.7 million as of September 30, 2021.
2021 Financial Guidance
Based on ongoing strength in the underlying business, SomaLogic is raising revenue guidance for the full year 2021 to range of $77 million to $79 million, which represents 38% to 41% growth over the company’s 2020 revenue. Updated guidance reflects an increase of 5-8% from our prior guidance issued on August 23, 2021, and an increase of 15-18% from our March 2021 annual revenue outlook of $66.7 million.
Webcast and Conference Call Details
SomaLogic will host a conference call at 8:00 a.m. ET on Monday, November 15, 2021 to discuss its third quarter 2021 financial results. The call may be accessed through an operator by dialing (844) 535-4027 for domestic callers or (270) 215-9487 for international callers, using conference ID: 8689426. A live and archived webcast of the event will be available through the Investors page of SomaLogic’s corporate website at https://investors.somalogic.com/.
SomaLogic seeks to deliver precise, meaningful, and actionable health-management information that empowers individuals worldwide to continuously optimize their personal health and wellness throughout their lives. This essential information, to be provided through a global network of partners and users, is derived from SomaLogic’s personalized measurement of important changes in an individual’s proteins over time. For more information, visit www.somalogic.com and follow @somalogic on Twitter.
SomaSignal™ tests are developed and their performance characteristics determined by SomaLogic, Inc. SomaLogic is a Clinical Laboratory Improvement Amendments (CLIA) certified, and College of American Pathologists (CAP) accredited laboratory.
The SomaScan Platform is for Research Use Only (RUO) and has not been cleared or approved by the US Food and Drug Administration for diagnostic or patient management purposes. SomaLogic’s proprietary SomaScan Platform was designed to be a universal platform that can be applied across research and discovery, translational research and biopharmaceutical development, and clinical applications. SomaLogic can run approximately 7,000 protein measurements on a single 55 microliter plasma or serum sample. The Company has run more than 450,000 samples to date.
Non-GAAP Financial Measures
We present non-GAAP financial measures in order to assist readers of our condensed consolidated financial statements in understanding the core operating results used by management to evaluate and run the business, as well as, for financial planning purposes. Our non-GAAP financial measure, Adjusted EBITDA, provides an additional tool for investors to use in comparing our financial performance over multiple periods.
Adjusted EBITDA is a key performance measure that our management uses to assess its operating performance. Adjusted EBITDA facilitates internal comparisons of our operating performance on a more consistent basis, and we use this measure for business planning, forecasting, and decision-making. We believe that Adjusted EBITDA enhances an investor’s understanding of our financial performance as it is useful in assessing our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business.
Our Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate this measure in the same manner. Adjusted EBITDA is not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. When evaluating our performance, you should consider Adjusted EBITDA alongside other financial performance measures prepared in accordance with GAAP, including net loss.
Forward Looking Statements Disclaimer
This press release contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward looking statements do not guarantee future performance and involve known and unknown risks, uncertainties and other factors. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including factors which are beyond SomaLogic’s control. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the company’s registration statement. These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SomaLogic assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. SomaLogic does not give any assurance that the company will achieve its expectations.
Marissa Bych or Lynn Lewis
Gilmartin Group LLC
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
|Three Months Ended September 30,|
Nine Months Ended
|Assay services revenue||$||17,499||$||11,378||$||48,308||$||22,166|
|Cost of assay services revenue||8,737||4,750||22,548||11,883|
|Cost of product revenue||33||163||452||497|
|Research and development||15,596||6,884||32,304||23,180|
|Selling, general and administrative||20,632||8,337||48,274||26,755|
|Total operating expenses||44,998||20,134||103,578||62,315|
|Loss from operations||(25,006||)||(5,901||)||(44,946||)||(34,649||)|
|Other (expense) income|
|Interest income and other, net||55||13||126||138|
|Change in fair value of warrant liabilities||(8,111||)||—||(8,111||)||—|
|Change in fair value of earn-out liability||(5,662||)||—||(5,662||)||—|
|Loss on extinguishment of debt, net||(2,693||)||—||(4,323||)||—|
|Total other expense||(16,413||)||(1,582||)||(19,294||)||(9,452||)|
|Other comprehensive loss|
|Net unrealized loss on available-for-sale securities||$||(15||)||$||(3||)||$||(7||)||$||(23||)|
|Foreign currency translation loss||(4||)||(2||)||(3||)||(6||)|
|Total other comprehensive loss||(19||)||(5||)||(10||)||(29||)|
|Net loss per share, basic and diluted||$||(0.55||)||$||(0.12||)||$||(1.01||)||$||(0.72||)|
|Weighted-average shares used to compute net loss per share, basic and diluted||75,684,521||61,099,901||63,752,006||60,934,489|
Condensed Consolidated Balance Sheets
(in thousands, except share data)
| December 31,|
|Cash and cash equivalents||$||468,708||$||164,944|
|Accounts receivable, net||14,690||17,449|
|Deferred costs of services||883||1,450|
|Prepaid expenses and other current assets||5,414||1,158|
|Total current assets||707,336||231,975|
|Property and equipment, net||6,487||3,913|
|Other long-term assets||908||378|
|LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)|
|Current portion of long-term debt||—||2,423|
|Total current liabilities||21,886||17,797|
|Deferred revenue, net of current portion||2,627||3,415|
|Other long-term liabilities||1,111||909|
|Commitments and contingencies|
|Stockholders’ equity (deficit)|
|Preferred stock, $0.0001 par value; 1,000,000 shares authorized; no shares issued and outstanding at September 30, 2021 and December 31, 2020||—||—|
|Common stock, $0.0001 par value; 600,000,000 shares authorized; 181,164,377 and 114,266,515 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively||18||11|
|Additional paid-in capital||1,101,499||597,274|
|Accumulated other comprehensive loss||(12||)||(2||)|
|Total stockholders’ equity (deficit)||625,899||185,917|
|Total liabilities and stockholders’ equity (deficit)||$||718,541||$||242,290|
Reconciliation of net loss in accordance with GAAP to non-GAAP adjusted EBITDA
|Three Months Ended September 30,||Nine Months Ended September 30,|
|GAAP net loss||$||(41,419||)||$||(7,483||)||$||(64,240||)||$||(44,101||)|
|Non-GAAP EBITDA adjustments to net income:|
|Interest expense, net||(53||)||1,582||1,198||9,452|
|Depreciation and amortization||532||671||—||1,909|
|Other non-GAAP adjustments:|
|Loss on extinguishment debt, net (1)||2,693||—||4,323||—|
|One-time non-cash stock-based compensation (2)||6,461||—||6,461||—|
(1) Represents the $5.2 million loss on extinguishment of debt as a result of the repayment of the Amended and Restated Credit Agreement in April 2021, the $2.7 million loss on extinguishment of debt as a result of the conversion of the Convertible Debt in July 2021, and the $3.6 million gain on extinguishment of debt as a result of the forgiveness of the PPP loan in June 2021.
(2) Represents a one-time non-cash stock-based compensation expense of $6.5 million related to the sale of stock and vested options by an employee to an economic interest holder in excess of fair value.
Harnessing the Power of Proteomics LEADING AI - DATA DRIVEN PROTEIN PLATFORM Global commercial and technological leader for bio - pharma and clinical protein discovery, measurement and interpretation November 2021
Forward Looking Statements ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. 2 Certain information, particularly relating to the future of Somalogic , our strategy, our product development plans, and the size and growth potential of the markets for our products and services, constitute forward - looking statements within the meaning of the Private Securities Litiga tion Reform Act. Forward - looking statements may generally contain words such as “believe,” “may,” “could,” “will,” “possible,” “can,” “estimate,” “continue,” “ongoing,” “consider,” “intend,” “indicate,” “plan,” “project,” “expect,” “should,” “would,” or “assume” or variations of such words or oth er words with similar meanings. We caution that these forward - looking statements are subject to numerous assumptions, risks and uncertainties that change over t ime and may cause actual results to differ materially from the results discussed in the forward - looking statements. These risks and uncertainties include our ability to obtain and maintain regulatory approvals, changes in applicable laws or reg ulations, changes in the life sciences industry, our ability to raising sufficient financing as and when needed; our ability to maintain existing lice nse agreements and manufacturing arrangements, our ability to protect our intellectual property, competitive risks, and those other risk factors id entified in the “Risk Factors” section of the Prospectus filed with the Securities and Exchange Commission (the “SEC”) on October 18, 2021, as well as subse que nt annual and periodic reports filed with the Securities and Exchange Commission, all of which are available at www.sec.gov and www.somalog ic. com. Forward - looking statements are based on current expectations and assumptions and currently available data and are neither predic tions nor guarantees of future events or performance. Current results may not be predictive of future results. You should not place considerable reliance on forward - looking statements which speak only as of the date hereof. We do not undertake to update or revise any forward - looking statements after they are made, whether as a result of new informati on, future events, or otherwise, except as required by applicable law.
Change ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. An evolutionarily advanced technology platform, database and bioinformatics capability Market - validated - more than 300 customers and collaborators Proteomics knowledge leadership with launch of clinical diagnostic applications Proteomics enablement leader – 7000 proteins, moving to 10,000 Significant technology trajectory and revenue acceleration ahead &UHDWHGE\$JQL IURPWKH1RXQ3URMHFW &UHDWHGE\0DVVLPR,SSROLWR IURPWKH1RXQ3URMHFW 3
Genomics provides the code, but proteins are the primary functional and structural molecules of life. We have been able to read DNA to full genome coverage at ever decreasing cost and increasing speed. However, we have not — until SomaLogic — been able to measure a sufficient number of proteins (thousands) simultaneously to obtain a “signal” and understand it. DNA Hereditary material that encodes functional biological molecules ONE AND DONE mRNA Molecule that carries DNA “directions for protein synthesis ~200K Transcripts Genomics Are The Blueprint, But Proteomics Are Dynamic Structure And Function ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. STATIC Primary functional and structural molecules for all biological processes Proteins REPEAT REGULARLY >1M Proteins ~10% HUMAN PROTEOME TRANSLATED 4 Is this missing a “ ~20KGenes
Leader in Enormous Untapped Proteomics Market EXPANDING PROTEOMICS AND GENOMICS MARKETS VIA UNBIASED, DEEP, AND RAPID PROTEOMICS AT SCALE ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. DIAGNOSTIC APPLICATIONS TRANSLATIONAL RESEARCH & BIOPHARMA DEVELOPMENT BASIC RESEARCH & DISCOVERY $ 40 B $ 20 B $ 30 B ~$ 90 B Total Available Market 5
Proteomics Leader: Significant First Mover Advantage 6 ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. 20 YEARS 250 PUBLICATIONS ESTABLISHED INDUSTRY ADOPTION | RAPIDLY GROWING REVENUE BASE & DEEP DIAGNOSTIC PIPELINE MOST SAMPLES FIRST CLINICAL TESTS IN MARKET LARGEST CUSTOMER BASE 300 + CUSTOMERS $ 550 M + 450 K SAMPLES INVESTED $ 55 M REVENUE 2020 CAGR NEXT 5 YEARS 10 x SIZE DATABASE (than nearest competitor) + 100 FIRST - IN - CLASS PROTEIN PATTERNS 20 VALIDATED CLINICAL TESTS 40 % + 250 K DEEP CLINICAL SAMPLE
• Proprietary aptamers ~700 patents issued or pending • Largest panels in the industry by 4.5x • 7,000+ plex today 10,000 in 2022 • Unparalleled sensitivity/specificity, dynamic range, reproducibility & scale • No upper limit to number that can be created (1.2 x 1,064 possible shapes) ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. • Largest proteomics database with deepest understanding of the proteome • 450,000+ samples growing to 1.5M+ by 2024 • 80% of samples on 5,000+ plex • 40% annotated with clinical data • Biobank contracts and unique access • Clinical partnerships expand database and fuel test development • Unmatched regulatory resource • 10+ year track record of protein data product development • Access to >1B protein measurements and 15M clinical data points • Bespoke protein bioinformatics capabilities p roteomic bioinformatics and analytics as a service (expands business model and customer access) • Artificial Intelligence and machine learning expertise PROPRIETARY | BROAD | DEEP SENSITIVE | SPECIFIC SCALE | TIME | INPUTS KNOWLEDGE AI - POWERED | APPLICATION ANALYSIS | DEVELOPMENT The Leading Proteomics Platform TECHNOLOGY &UHDWHGE\$]DP,VKDT IURPWKH1RXQ3URMHFW DATABASE &UHDWHGE\$JQL IURPWKH1RXQ3URMHFW AI - POWERED BIOINFORMATICS STACK 7
• Proven ability to measure >7000 proteins in a single sample from small biologic sample (30µl) • Capability to run assays simultaneously , at high throughput • Established CLIA/CAP certified lab infrastructure • Highly scalable, reproducible and market validated ADDRESSING KEY COMMERCIAL PROTEOMICS CHALLENGES B R EA D TH D EP TH SPEED CO S T SCALABILITY Antibodies Nanobeads / Mass Spec. Protein Sequencing REPRODUCIBILITY LOW SAMPLE SIZE DETECTION NO PARTIAL YES ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. OPPORTUNITY 8 SomaLogic’s Technology
9 ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. TECHNOLOGY BIOINFORMATICS STACK DATABASE Data BioBank Drug Discovery Engine Clinical Trial Tools Life Sciences Research Market Companion Diagnostics BioPharma & Research Business 20 Validated Tests 10 Tests Launched Pipeline of 100+ First - in - class Tests Clinical Diagnostics Business &UHDWHGE\$]DP,VKDT IURPWKH1RXQ3URMHFW &UHDWHGE\$JQL IURPWKH1RXQ3URMHFW &UHDWHGE\$GULHQ&RTXHW IURPWKH1RXQ3URMHFW Platform Breeds Virtuous Cycle of Value Creation
Industry Evolution: From Enabler to Applications to Integrated Platforms 10 ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. EMERGING EVOLUTION OF PROTEOMIC COMPANIES FOLLOWING GENOMICS TRAJECTORY Total commercial opportunity ~$90B Proteomics TAM ~$75B current market cap ~$65B current market cap ~$10B current market cap ~$70B Genomic TAM SomaLogic has the broadest technological capability and substantial first mover advantage in proteomics to not just enable to apply to clinical diagnostics, capturing both ends of the market GENOMICS ENABLING GENOMICS APPLICATIONS PROTEOMICS ENABLERS FULL - SPECTRUM PROTEOMICS PLATFORM
An Enabler and Applications Company Traversing Enormous Market Segments
SomaLogic Research – Broad Offering Across Basic and Translational Research Market WHAT WE OFFER THE LIFE SCIENCES RESEARCH MARKET 12 ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. SomaLogic Research BASIC RESEARCH & DISCOVERY $30B TRANSLATIONAL RESEARCH & BIOPHARMA DEVELOPMENT $20B COMPANION & COMPLEMENTARY DIAGNOSTICS CLINICAL TRIALS PQTL TARGETS DRUG | VACCINE TARGET ID & DEVELOPMENT NEW BIOLOGIC INSIGHTS GENOMIC & PROTEOMIC DISCOVERY
300+ Deep Industry Partnerships Built Up Over 20 Years 13 ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. Gates funded COVID19 research samples ($1M renewable grant from the $125M grant program) Other research with Gates (maternal health, child nutrition in medically developing world). July 2021 Ten - year deal to use SomaLogic’s platform for drug development Sample commitments of >60 - 70K/ yr over the next several years (long - term revenue visibility) Late 2019 $24M sample deal 2020 - 2021 Desire to “co - develop” Amgen tests of interest on SomaLogic platform July 2020 INDIVIDUAL INVESTIGATORS ACADEMIC LABS PHARMA DISCOVERY CLINICAL RESEARCH ORGANIZATONS PHARMA CLINICAL TRIALS MULTI - OMICS PROVIDERS CLINICAL COMMERCIAL RISK STRATIFIERS HEALTH SYSTEMS RECENT BUSINESS MOMENTUM AND VALIDATION
SomaLogic Clinical Diagnostic Market Positioning 14 ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. SomaLogic Clinical DIAGNOSTIC APPLICATIONS $40B EARLY DETECTION RISK PREDICTION PATIENT / POPULATION RISK STRATIFICATION DISEASE PROGRESSION TREATMENT SELECTION / COMPANION DIAGNOSTICS / RESPONSE PREDICTION PROPRIETARY TEST DEVELOPMENT MULTI - OMIC PRODUCT DEVELOPMENT &UHDWHGE\$JQL IURPWKH1RXQ3URMHFW &UHDWHGE\5R\\DQ:LMD\D IURPWKH1RXQ3URMHFW SOMASIGNAL DIAGNOSTICS APPLIED ACROSS THE CONTINUUM
• What is the risk of a second cardiovascular event in 4 years if there has been a previous event ( no diagnostic test/algorithm currently exists) • ~15,000 participants have been evaluated by this test in 7 different clinical human sample studies • Performance exceeds any combination of traditional risk factors with 4 - year AUCs 0.72 - 0.84 • Calibration excellent across studies even with 5x event - rate differences (event free survival (top), event rate (bottom) • Geographically, racially and gender robust • Norway, US, Japan, multi - country… Men/Women/Black • Symptomatic, asymptomatic, heart failure +/ - , elderly without known disease • Sensitive to both increases and decreases of risk over time SomaSignal Tests SECONDARY CARDIOVASCULAR RISK EXAMPLE SomaLogic Clinical Case Study ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. 15
Clinical Pipeline: SomaSignal Tests PIPELINE AND CURRENTLY AVAILABLE TESTS 16 ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. SomaLogic Clinical LAUNCHED Q4 2019 AVAILABLE 2020 - 2023 AVAILABLE 2024+ • Alcohol impact • Body fat percentage • Cardiorespiratory fitness/VO 2 max • Alcohol impact • Alzheimer’s/dementia risk • Biologic/functional age • Body fat percentage • Body weight trajectory • Bone mineral mass • Cardiorespiratory fitness/VO 2 max • Circadian cycle • Cognitive function • Cognitive trajectory • Depression/mood with aging • Diet change/hypertension correlation • Frailty • Grip strength with aging • Healthspan • Inflammatory load • Insulin sensitivity • Joint health • Lean body mass • Lifespan • Mental stress • Microbiome diversity • Physical activity • Reproductive health • Resting energy rate • Sleep quality • Smoking status • Social deprivation • Visceral fat • Cancer risk (top 15) • Coronary artery calcium surrogate • CV risk (all - comers multiple subtypes) • eGFR (kidney function) • GLP - 1 agonist response • Glucose tolerance • Functional status/ability with aging • Liver fat • Predict type II diabetes diagnosis with complications • Primary CV risk - 4 year • Secondary CV risk - 4 year SomaLogic Clinical • Cancer early detection • Cancer susceptibility (top 4) • CHF therapy sensitivity • Congestive heart failure prognosis • Congestive heart failure type • COPD risk/risk of progression • Kidney disease prognosis • NASH: 4 liver biopsy components • Pulmonary function • Rule - out symptomatic coronary heart disease • Statin adherence • Cancer susceptibility (top 4) • CHF prognosis • CHF type • Kidney disease prognosis • NASH: 4 liver biopsy components • Rule - out symptomatic coronary heart disease • Statin adherence • Coronary artery calcium surrogate • eGFR (kidney function) • GLP - 1 agonist response • Glucose tolerance • Liver fat • Predict type II diabetes diagnosis with complications • Primary CV risk - 4 year • Secondary CV risk - 4 year • Alcohol impact • Alzheimer’s/dementia risk • Biologic/functional age • Body fat percentage • Body weight trajectory • Bone mineral mass • Cardiorespiratory fitness/VO 2 max • Cognitive function • Healthspan • Insulin sensitivity • Lean body mass • Lifespan • Physical activity • Resting energy rate • Sleep quality • Smoking status • Social deprivation • Visceral fat • Lean body mass • Resting energy rate • Visceral fat • Glucose tolerance • Liver fat • Primary CV risk - 4 year • Secondary CV risk - 4 year KEY FOR TEST TYPE • Health/Wellness • Preventative Medical • Disease Management
2021 Revenue Results 18 ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. - 5.0 10.0 15.0 20.0 25.0 2020 2021 Revenue 1Q 2Q 3Q 2020 2021 2021 Y/Y Growth Quarter 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q TOTAL REVENUE ($mm) 6.3 7.2 14.2 18.9 19.6 20.0 200% 172% 41%
Build, Buy, Partner: Expand Technology Stack & Distribution Channels Aggressively ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. STRATEGY ▪ “Double down” on first mover comprehensive commercial position ▪ Combination of partnerships, investments and acquisitions ▪ Several partnerships are already initiated Added Data Services Analytics Biobank BI NextGen Platforms Protein Seq NextGen Platforms Protein Seq 10K Plex+ Expand Applications Single Cell Intracellular “Box” More Deployable Hardware Reagents Proteo - Genomics Discovery and Clinical Products Tech Trajectory NGS Alt Arrays ORGANIC Internal R&D Partnerships INORGANIC Acquisitions Partnerships Target Discovery Large scale Assay Partnerships TBD TBD Licenses/ Royalties Test Development Reagents Diagnostic Partnerships TBD 20
Experienced Leadership Roy SMYTHE Chief Executive Officer Melody HARRIS President and COO Nebojsa JANJIC Chief Scientific Officer Alan WILLIAMS Chief Development Officer Angela BAKKER - LEE EVP Healthcare Market Tracy HERVEY EVP Research & Discovery Market Manda MORRIS VP Finance Steve WILLIAMS Chief Medical Officer Jason CLEVELAND Chief Technology Officer TBD Chief Strategy Officer Shuan BLAKEMAN Chief Financial Officer ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. 21
Board of Directors & Financial Partners Blue Water Life Science Advisors Boston Millennia Partners Mossrock Capital Monashee Investment Charles M. LILLIS Chairman Co - Founder & Partner, LoneTree Capital Anne MARGULIES Vice President & Chief Information Officer, Harvard University Eli CASDIN Chief Investment Officer and Founder, Casdin Capital Bob BARCHI M.D., Ph.D. Former President of Rutgers University Richard POST Former President & CEO, Autobytel, Inc. Roy SMYTHE CEO, SomaLogic Former CMO for Strategy & Partnerships, Royal Philips Ted MEISEL J.D. Executive Founder of AVIA Troy COX Former CEO of Foundation Medicine and SVP of U.S. BioOncology for Genentech Kevin CONROY J.D. Chairman and CEO of Exact Sciences Stephen QUAKE Ph.D. Lee Otterson Professor of Bioengineering and Professor of Applied Physics at Stanford University
SomaLogic Is Uniquely Positioned ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. • A proprietary platform (technology, database, bioinformatics) and a first - mover advantage • Twenty years experience, and more than 500M total investment in technology • More evolutionarily advanced position (enablement and applications) than any other proteomics company • Market validated – many customers, established products, revenue and more of each assured • The global leader in protein measurement, at 4.5X all competitors – 7,000 current, on the way to 10,000 • The world’s largest clinical proteomics database with ~500,000 samples, ~1/2 with full clinical correlation • The market leader in protein bioinformatics – 1B protein measurements and 15M clinical data points • Twenty validated first - in - class protein pattern recognition diagnostic tests, and ~100 in development • Core measurement reagent is nucleic acid, with significant technology trajectory options • A very senior management team, with experience in healthcare, data, R&D, genomics and engineering 23
Visit our website : www.somalogic.com Contact us: email@example.com 24
Appendix ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. 25
Health System Clinical Diagnostic Marker Progression ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. INVESTMENT IN COMMERCIAL INFRASTRUCTURE, NEW PRODUCT AND SERVICE OFFERINGS AND HEALTH SYSTEM PARTNERSHIPS C A B D Benefits proof studies were initiated with 4 health systems. A subset of customers will become the first purchasers, and others will fast follow those, by convention. CV Risk tests, others evaluated for health econ, subgroup applications (Ex: CV risk with chemo) C A B D TBA TBA TBA TBA C A B D TBA TBA TBA TBA 2020 2021 2022 2023 HEALTH SYSTEM PARTNERSHIPS 26
The SomaLogic Platform “SOMAMER” REAGENTS SOMASCAN ASSAY SOMALOGIC BIOINFORMATICS EXPERTISE Slow Off - Rate Modified(“SOMAmer”) Aptamers: proprietary protein - binding reagents Incorporates ~7,000 (current) unique SOMAmer reagents to measure proteins in a single sample World - Leading Biobanks Contracts and Access data Emerging Clinical Partnerships PROTEOMICS DATA PRODUCTS SOMASIGNAL TESTS SOMALOGIC PROTEOMICS DATABASE SomaSignal Research SomaSignal Clinical data ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. 27
SomaSignal Tests • First - in - class, only diagnostic tests using protein pattern recognition • Machine learning models correlate patterns of protein expression to condition or disease from thousands measured each time • Proteins chosen for each model (16 – 360) are chosen by the machine learning model, not by the literature SOMALOGIC BIOINFORMATICS EXPERTISE World - Leading Biobanks Contracts & Access data Emerging Clinical Partnerships PROTEOMICS DATA PRODUCTS SOMASIGNAL TESTS SOMALOGIC PROTEOMICS DATABASE SomaSignal Research SomaSignal Clinical data Approach more akin to radiomics (e.g., system finds models humans cannot see) than traditional protein diagnostics Nature Medicine (2019) – test development methodology ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. 28
® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. Evolving the SomaScan Platform NGS COGS MARGIN DEPLOYED ASSAY (“BOX”) 24 MOS The assay readout can be performed on alternative, less expensive arrays, or on NGS platforms (feasibility completed for both). Either of these approaches will significantly lower assay COGS and increase margin on all products . Within ~24 mos. either of these could be a part of a more modular deployed assay solution, adding on - premise hardware and reagents sales to current, primarily service model. PRESENT MANY OPTIONS AVAILABLE AND IN MOTION FOR TECHNOLOGY TRAJECTORY H’WARE & REAGENTS NEW ARRAY APPROACHES 29
® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. • All SomaSignal tests can be run from one sample (they are algorithms derived from one data source) • Tests are repeatable and can measure change over time • Will replace more invasive, more expensive & less convenient diagnostic approaches SomaSignal Tests – First Clinical Products LEVERAGING HIGH - PLEX MEASUREMENT, PROTEIN PATTERN RECOGNITION & MACHINE LEARNING SomaLogic Clinical 30
Data Perpetuates Innovative Healthcare Delivery Opportunities ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. SomaScan Variety of high - quality data inputs: clinical trials, biobanks, clinical relationships Providing the raw material for development of SomaSignal tests Creating a significant spectrum of value and benefit for life science discovery and healthcare delivery 31
SomaSignal NASH Panel • The world’s only non - biopsy source of all 4 components of NASH and NAFLD • 4 independent models trained against biopsy and pathology read • NAS score sensitivity from .77 to .93, and sensitive to change • Gold standard liver biopsy – clinical trials / diagnosis difficult due to risk, cost and aversion • Imaging exists, but only suggests fibrosis • Original test model - 3000 specimens from PIVENS, FLINT and large natural history studies • Further validation by the LITMUS consortium (Liver Investigation: Testing Marker Utility in Steatohepatitis) where performance was #1 out of 20 tested biomarker / biomarker combinations. FIBROSIS BIOPSY RESULT STEATOSIS BIOPSY RESULT SOMASIGNAL NASH PREDICTIONS RELATED TO BIOPSY RESULT (VALIDATION DATASET) INFLAMMATION BIOPSY RESULT BALLOONING BIOPSY RESULT SomaLogic Clinical Case Study THE “LIQUID LIVER BIOPSY” ® 2021 SOMALOGIC, INC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. 32