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Corporate PresentationApril 2013
NASDAQ:VRML
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NASDAQ:VRML
The following information contains certain forward-looking statements relating to the companys
business, which can be identified by the use of forward-looking terminology such as estimates,believes, expects, may, are expected to, will, will continue, should, would be, seeks,
pending, anticipates, the negative version of these words and other similar expressions, or by
discussions of strategy, plans or intentions. Such statements include descriptions of the companys
investment and research and development programs and anticipated expenditures in connection
therewith, descriptions of new products expected to be introduced by the company and anticipated
customer demand for such products and products in the companys existing portfolio. Such
statements reflect the current views of the company with respect to future events and are subject tocertain risks, uncertainties and assumptions, including those described in the companys most recent
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Many factors could cause the
actual results, performance or achievements of the company to be materially different from any
future results, performances or achievements that may be expressed or implied by such forward-
looking statements. Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from those describedherein as anticipated, believed, estimated or expected.
This presentation is copyright 2012-2013 by Vermillion, Inc. All Rights Reserved.
All logos, trademarks and brand names used in this presentation are the property of Vermillion or
belong to their respective owners.
Forward-Looking Statements
1
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NASDAQ:VRML
To become a recognized leader
in the advancement of womens
health by providing innovativemethods that detect, monitor
and manage the treatment of
gynecologic cancers
Corporate Vision
2
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NASDAQ:VRML
We collaborate with prestigious research
institutions to advance our product developmentprograms in gynecologic oncology diagnostics
We work with physician champions to conduct
studies focused on quality of care and health
economics benefits, to enable positive coverage
decisions and inclusion in medical guidelines
We promote utilization of our products by
advancing from CLIA-LDT to FDA clearance,
securing Category I CPT codes and driving
favorable state and national coverage decisions
Leveraging these core competencies, our flagship
product, OVA1, is the firstFDA-cleared,multi-
biomarker blood test for pre-surgical diagnosis of
ovarian cancer. OVA1 represents anew classof
software-based diagnostics
Vermillion is an Industry Leader inMultivariate Diagnostics
3
Collaborators
Strategic Partner
Unique Capabilities Support Opportunities in Gynecologic Oncology
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NASDAQ:VRML
Financial Highlights (12/31/12)
Cash $8.0M
Revenue (ttm) $2.1M
Total Assets (mrq) $8.6M
Total Debt $1.1M
Total Liabilities (mrq) $4.0M
Total Equity (mrq) $4.7M
Stock Key Stats(1)
Stock Price (3/28/2013) $1.20
52 Week Low/High $1.13-$2.79
Avg. Daily Vol. (3 mo.) 64,308
Shares Outstanding 15.2MPublic Float, est. 13.5M
Inst. Holdings, est. (mrq) 15.0%
Insider Holdings, est. 3.9%
Market Cap. $18.4M
Enterprise Value $11.5M
EV/Revenue (TTM) 5.5x
1. Data Source: S&P Capital IQ & Company Management
Note: Institutional holdings includes non-filers and 860,595 shares held by Quest Diagnostics.
Key Stats: VRML (NASDAQ GM)
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NASDAQ:VRML
Lifetime risk of developing ovarian cancer: 1 in 71
Ovarian cancer is called the Silent Killer since it oftengoes unnoticed, making early detection key to survival3
More than 1 million adnexal masses (aka tumors or cysts)
detected annually in the U.S.
Estimated 300,000 adnexal surgeries/yr of which about
22,000 result in finding cancer Only 19% are diagnosed as malignant before the cancer
spreads (metastases)
15,000 US deaths annually deadliest gynecologic
cancer and 5th leading cause of cancer death in women
Only 1 in 3 women with ovarian cancer are initiallytreated by a gynecologic oncologist, in part due to
inadequate diagnostic tests and procedures
Overall 5-year survival rates lag far behind other
cancers, despite well-documented survival advantage
for those operated by a gynecologic oncologist
OVA1 Addresses Unmet Clinical Need forBetter Diagnosis of Ovarian Cancer
5
Stage % ofCases
5-year SurvivalRate
I 24% 95%
II 6% 65%
III 55% 15-30%
IV 15% 0-20%Source:AmericanCancerSociet
y
Key to Survival: Early Detection
Adnexal
Mass
3. Surveillance, Epidemiology, and End Results, Stage Distribution and 5-year Relative Survival by Stage at Diagnosis for 2001-2007,
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NASDAQ:VRML
CA125 Blood TestTransvaginal
Ultrasound/Imaging
Limited # of Gynecologic
Oncologists (GOs)
Before OVA1, CA125 was the
only existing blood test for
Ovarian Cancer
Unreliable: 50% false
negatives for early stage
ovarian cancers
Misleading: Elevated levels
can be caused by other
conditions (i.e., benign
ovarian tumors,
endometriosis)
Unreliable: evaluation not
standardized, too subjective
Variable: Results
dependent on the varying
skill & experience of the
Ultrasound operator
Physical exam not
conclusive
Just 1,000 Gynecologic
Oncologists in the U.S.
100,000 FamilyPractitioners in U.S.
50,000 GeneralSurgeons
50,000Internists
35,000OB/GYNS
~1,000GOs
Whats the Problem with theTraditional Approach to Diagnosis?
6
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Widespread Flaws Found in Ovarian Cancer Care - NY
Times front page, Mar. 11, 2013 Inadequate Treatment of Ovarian Cancer - NY Times
editorial, Mar. 13, 2013
Also reported by NBC Nightly News with Brian Williams(Mar. 13, 2013)
This news coverage focused on a clinical study ofpatientaccess to optimal carein ovarian cancer by Dr. Robert
Bristow, who also led our OVA500 pivotal study (sl. 18, 19)
Key findings:
Of 13,000 ovarian cancer patients treated between 1999 - 2006, only
37% received the care recommended by NCCN, an alliance of 21major cancer centers across the USA
Women who received the recommended NCCN standard of care were
30% less likely to die
Even with advanced cancer, recommended treatment allowed 35% of
patients to survive at least 5 years, compared with 25% when the
standard was not followed
The Problem?Patient Access to Optimal Care
7
If we could just make
sure that women get to
the people who are
trained to take care of
them, the impact
would be much greater
than that of any new
chemotherapeutic
drug.- Dr. Robert
Bristow
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NASDAQ:VRML
OVA1 is an FDA-cleared blood test to help
physicians assess the probability that ovarian
masses are malignant or benign prior to surgery
With 96% sensitivity, OVA1 may help refer cancers
to oncology specialists, while 95% negative
predictive value (NPV) helps ensure benign cases
are treated in a local setting.4
OVA1 is the first FDA-cleared, protein-based, In
Vitro Diagnostic Multi-Variate Index Assay (aka
multi-biomarker test) and represents a new
class of software-based diagnostics
AMA assigned a unique Category 1 CPT Code to
OVA1 effective January 1, 2013
The Solution: OVA1
8
As physicians who are
expert in the care of womenwith gynecologic cancers,
members of the SGO are
supportive of scientific
advances such as OVA1 that
may help healthcare
providers better detectwhen referral to a
gynecologic oncologist is
indicated.
Society of Gynecologic
Oncology, Sept 2009 5
4. Ueland FR, DeSimone CP, Seamon LG, et al. Obstet Gynecol. 2011;117(6):1289-1297.
5. http://www.sgo.org/newsroom/position-statements-2/ova1/
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NASDAQ:VRMLHow OVA1 Works
9
Using OvaCalc, Vermillion's FDA-cleared
software device, OVA1 evaluates 5 proteins
found in the blood which increase or
decrease if you have ovarian cancer
The OvaCalc algorithm
combines the 5 results into a
single numerical test value
that expresses the probability
of malignancy
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NASDAQ:VRMLOVA1 Diagnostic Pathway
10
Before a generalist removes an ovarian mass,
OVA1 can help identify patients at higher risk of malignancy,for whom specialist involvement is appropriate
Ovarian
MassClinical
Impression
Surgery
Planned
Lower
Probability of
Cancer
Ob/Gyn
Higher
Probability ofCancer
Specialist
Involved
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NASDAQ:VRML
Subjects OVA1 CA125-II
All cancer (n=161) 96% 69%
All epithelial ovarian cancer(EOC; n=94)
99% 83%
Early stage EOC (n=40) 98% 68%
Premenopausal women with
early stage EOC (n=14)93% 36%
Sensitivity NPV
Clinical Impression (CI) 75% 88%
OVA1 + CI 96% 95%
OVA1 Improves Upon Clinical Impression Performance by Cancer Stage
OVA1 is Superior to CA125-II
The combination of OVA1 and physician's pre-
surgical assessment identified primary ovarian
malignancies in 90% of Stage I cancers and 100% in
Stage II and Stage III patients
OVA1 identified 99% of all EOC &98% of all early stage EOCs
OVA1 had 93% sensitivity for
premenopausal early stage EOC vs.
36% for CA125-II
OVA1 FDA Clearance Data4
114. Ueland FR, DeSimone CP, Seamon LG, et al. Obstet Gynecol. 2011;117(6):1289-1297.
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NASDAQ:VRML
OVA500 KEY TAKEAWAYS
Outstanding performance reported in early-
stage ovarian cancer and across a broad
range of malignancy subtypes
>1,000 patients in combined OVA1 clinical
studies with a total of 259 malignancies
Overall both studies identified 93% (78/84)
early-stage ovarian malignancies
Confirms the unrivaled sensitivity of OVA1
for early-stage adnexal malignancies in the
critical population of premenopausal
women
Gynecologic Oncologypublished OVA500
clinical study in February 2013
OVA1: OVA500 Multi-Center Study7
Principal Investigator for
the second OVA1 study,
Dr. Bristow has authored
four books and published
numerous research
articles on ovarian cancer
Thanks to diagnostic advances like OVA1,
there is real hope that the majority of
women with ovarian cancer will undergo
surgery by a qualified gynecologiconcologist, which is one of the most
powerful determinants of survival.
Dr. Robert E. Bristow
Director of Gynecologic Oncology Services
UC Irvine Healthcare
7. R.E. Bristow et al. / Gynecologic Oncology 128 (2013) 25225912
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NASDAQ:VRML
Risk StratificationPerformance
OVA1Sensitivity
Overall 92%
Early Stage Disease 91%
Premenopausal Patients 94%Premenopausal in early
stage w/ specificity of 61%91%
Combined w/Physician Assessment
Sensitivity NPV
Overall 96% 98%
Premenopausal
Population94%
Early Stage Ovarian
Cancer (Stage I & II)91%
New OVA500 multi-site study confirmed &extended the original pivotal study results:
13
OVA500 Multi-Center Study Results
OVA1: OVA500 Multi-Center Study7
7. R.E. Bristow et al. / Gynecologic Oncology 128 (2013) 252259
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NASDAQ:VRML
14
How Might OVA1 Impact Generalists?
Predicted OVA1 Impact on Percent of Cancers Missed
Predicted OVA1 Impact on Gyn-Onc Referral of Benign Patients
Study Results of % of Cancers Missed
Evaluation Method Ueland Bristow Combined
Clinical Assessment Alone26.1%(N=516)
24.8%(N=494)
25.3%(N=1,100)
Clinical Assessment + OVA1
4.3%
(N=516)
4.3%
(N=494)
4.3%
(N=1,100)
Ueland Bristow Combined
Total number of benign surgeries 363 402 765
Benign patients referred to Gyn-Onc for surgery 71.9%(261/363)
50.0%(201/402)
60.4%(462/765)
Incorrect risk stratification of benign patients by
OVA1 potentially leading to referral (False
Positive Rate)
57.2%(203/355)
46.5%(187/402)
51.5%(390/757)
Predicted misclassification of benign patients by
Clinical Assessment+OVA1 (logical OR function) 65.4%(232/355) 49.3%(198/402) 56.8%(430/757)
OVA1 detected
53 of 64 cancers
(83%) missed
by Clinical
Assessment
Referral of
benign patients
predicted to be
no higher than
currently found
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NASDAQ:VRML
21M
36M
47M
2010 2011 2012
Total Lives Currently Covered with OVA1
27 Blue Cross Blue Shield
(BCBS)47 million
Medicare / Medicare
Advantage45 million
Department of Defense 1.4 millionOther payors contracted
with Quest Diagnostics1.5 million
Total 94.9 million
BCBS Coverage Expanding
Highmark of Medicare coverageestablished in March 2010: $516.25 per
test
Department of Defense coverage initiated
Q1 2012 at list price: $650 per test
OVA1 Expanding Coverage &Favorable Pricing
15
(Millions of Lives)
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NASDAQ:VRML
OVA1 partnership economics: Quest
Diagnostics pays Vermillion $50 per test plus
33% of Quest Diagnostics gross profit per test
Exclusive rights through 2014 with option for2015
Development phase of alliance being closed out
Paid back development loan in 2011
In negotiations to close out development phase
and define future relationship
Regular steering committee meetings to
enhance business relationship
Quest Diagnostics Alliance
16
Potential OVA1 Testing
Locations
Physician
Offices 10-
20%
Ref Labs,
e.g.
Quest,
LabCorp
~30%
Hospital
Labs 50-
55%
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NASDAQ:VRML
Growth in OVA1 Tests
Performed Since FDA Clearance
6,192
15,227
16,460
2010 2011 2012
Nearly 40K tests ordered since 2010 launch
>5,500 ordering physicians to date
More than 30 Key Opinion Leaders in the
speaker bureau
Two peer review publications in June 2011
Increasingly supported by positive coveragedecisions, i.e., Medicare and Blue Cross Blue
Shield
Positive statements by ACOG & SGO
OVA500 study published by Gynecologic
Oncology in February 2013
Granted unique CPT code, effective Jan. 2013
OVA1 Clinical & Commercial SuccessDemonstrates Strong Growth Opportunity
17
Q1 2013: Expecting 4,250 to
4,550 tests to be performed99. Guidance issued on February 20, 2013
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NASDAQ:VRMLOvarian Cancer Roadmap
Product Purpose or Upgrade
Doctor Type
ProductEstimated
Launch
Gyn-
Onc OB/GYN
Current OVA1: patient triage/referral to Gyn-Onc X OVA1 Launched
Provide CA125 result for cancer recurrence
baselineX OVA1 2013
Re-launch OVA1 on a single, top-4 IVD platform X OVA1+ 2014
Aid in diagnosis for patients referred to Gyn-Onc X OVA1+ 2015
Next-gen OVA1 with reduced FPR, increased PPV X X OVA2 2015*
*Assumes fast-track option with licensing is successful
Strategic imperative: give the Gyn-Onc a reason to require OVA1 in patient workup
#1 Gyn-Onc request is release of CA125 result as baseline for post-operative
monitoring for recurrence of a malignancy
Importance of re-launch on a top-4 platform discussed in a later slide
Aid in diagnosis claim enables Gyn-Onc to use OVA1 score to estimate likelihood of
cancer, in conjunction with imaging or other factors
OVA2: Platform for entry into high-risk monitoring, prognosis and other indications
18
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NASDAQ:VRML
Instruments common to most US Clin Chem
reference labs and hospitals
Adds OVA1 to their oncology/repro menu
Automate & simplify OVA1 test ordering,
execution, QC & results reporting
Strong presence in markets outside USA
WW Regulatory and commercial capabilities
Strategic development/commercialization
partner for future multi-marker tests
Re-Launch OVA1 on a MajorAutomated IVD Platform
19(1) Estimated milestone dates. Objectives are not placed in any specific order.
Top 4: Siemens, Roche, Abbott and Beckman Coulter (Danaher)
Strategic Goal: Dramatically expand OVA1 commercial reach
with a top-tier IVD laboratory systems partner, leveraging theirworldwide installed base of instruments and customers.
Key Objectives:1 Why Partner?
Phase 1
Prioritize based on market share/OVA1 menu
Initiate Bus Devt discussions
Platform migration algorithm optimization
Validation with Ueland/Bristow study samples 510(k) showing substantial equivalence
Phase 2
OVA1 ordered directly from LIS, reported to LIS
5-component tests automatically generated
On-board, automated OVA1 calculation
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NASDAQ:VRML
No loss of current OVA1 advantages
Sensitivity, NPV, detection of early stage
cancer and broad range of tumor subtypes
Improve specificity to 75% at same time
PPV around 50% or higher
Five or fewer biomarkers
Use IVD-cleared component kits if possible
Validate using existing patient serum
samples if possible
OVA2: Technology Foundationfor Next-Generation Products
20
Strategic Goal:Improve specificity and PPV without sacrificing current
OVA1 strengths, as a technology foundation supporting OVA1 adoption asa standard of care. Will also support expanded claims and new line
extensions as an aid in ovarian cancer diagnosis and patient management.
Key Objectives1:
OVA2 Technology Design Goals Protect IP and publish results ofBiomarker Bakeoff completed in 2012
Complete Freedom to Operate diligence
and engage licensing partners as needed
Fast-Track Option (goal: EOY 2014-2015)
License only IVD-cleared components
Lower Devt cost & risk; far less Devt work
Backup Option (likely 2016 or later)
Two research-grade IAs required
Conversion to IVD-grade costly, expensive(1) Estimated milestone dates. Objectives are not placed in any specific order.
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NASDAQ:VRML
Maximize the Current OVA1 Opportunity
Vermillion performs as primary commercialization driver Growth could be further accelerated by non-exclusive relationship with Quest
Dedicated Technical Support for Patients and Providers
Guidelines Driven by New Clinical and Economic Data, Conferences and Publications
Coverage from National Plans and Improved Payment Experience
Expand the OVA1 Customer Base
Re-Launch OVA1 on Major Automated Platform with Strategic Partner
Expand the addressable market into hospital based testing
Increased lab placements
Non-US licensing and collaborations
Expand the Patient Base with Next Generation Performance Levels
Improve specificity and PPV drive market penetration & expanded claims
With KOL support, pursue Gyn-Onc use as aid in diagnosis & surgical planning
CLIA-LDT followed by new FDA submission for high risk patient monitoring
2013-2015 Focus on Expanding theCommercial Franchise
21
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NASDAQ:VRML
BUSINESS PLAN OVERVIEW &COMPANY INFORMATION
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NASDAQ:VRMLManagement Team
23
Proven success in delivering value for investors through expertise in diagnostic test
development and commercialization
Title Experience
Thomas McLain President and CEOClaro Scientific, Nabi Biopharmaceuticals,
Bausch & Lomb, Ernst & Young
DonaldMunroe, Ph.D.
SVP Business
Development and
Chief Scientific
Officer
Beckman Coulter, Invitrogen Corporation,
Corning (Microarray Technologies), R.W.
Johnson Pharmaceutical Research Institute,
Allelix Biopharmaceuticals
William CreechVP, Sales &
Marketing
Capitol Vial, Apogent Technologies, Chiron
Diagnostics, Abbott Diagnostics
Eric SchoenChief Accounting
Officer
Borland Software, Trilogy Enterprises,Momentum SI, Alticast,
PricewaterhouseCoopers
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NASDAQ:VRMLBoard of Directors
24
Established Board of Directors with proven expertise in diagnostic test
development and commercialization
Title Experience
Bruce HuebnerChairman of the
Board
Hybritech, Gen-Probe, Nanogen, Osmetech
Molecular Diagnostics
James Burns Director
AssureRX, Entremed, MedPointe, Osiris
Therapeutics
Robert Goggin Director Keller & Goggin, P.C.
Peter Roddy Director
Pain Therapeutics, COR Therapeutics, MCM
Laboratories, Hewlett-Packard, Price
Waterhouse
Carl
SeveringhausDirector Tecan Americas, American Monitor Corporation
William
Wallen, Ph.D.Director
IDEXX Laboratories, Bayer Healthcare, Becton
Dickenson, Wampole Laboratories
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September OVA1 cleared by FDA
March OVA1 launched and Medicare issued coverage
September CE Mark for OVA1 October OVA1 high sensitivity data presented at IGCS
January PAD biomarker patent granted
March OVA1 high sensitivity data & OVA2 biomarker data presented at SGO
OVA1 referenced in updated ACOG/SGO committee opinion
May Notice of allowance for PAD biomarker panel patent and Alzheimer patent
June Two OVA1 peer reviewed articles published in Obstetrics & Gynecology
September Data highlighting improved sensitivity when imaging is combined with OVA1
November Notice of allowance for 5th PAD biomarker patent
December Acquired assets of Correlogic
March DOD contract
Received Category 1 CPT code for OVA1
May Expanded coverage to 93M lives
October Published PAD study in online peer-reviewed journal, Vascular Medicine
November OVA500 clinical study published in Gynecologic Oncology
January Launch new CPT Code
March OVA500 clinical study data presented at SGO by Dr. Bristow
Vermillion announces seeking partner for PAD program
25
2012
2011
2010
2009
2013
Company Accomplishments
Future Investment will Expand the
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NASDAQ:VRML
Complementary Diagnostics
Maintain Gynecologist/Gynecologic Oncologist focus
Ovarian, cervical, endometrial and uterine cancers
Drug selection/companion diagnostics
CLIA/CAP Accredited Laboratory
Portfolio of CLIA-LDTs and FDA Approved Tests
Focus on delivering combination of improved quality, cost saving
and differentiation to healthcare providers
Expand Commercial Platform to Include Molecular and
Metabolic Testing
Future Investment will Expand theProduct Portfolio
26
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NASDAQ:VRML
Vermillion is an industry leader in Multi Marker
IVD and Gynecologic Cancer Demonstrated success with first commercial
product:
Nearly 40k tests ordered through 2012
5,500 ordering physicians to date
Strengthening trends in OVA1 payer coverage and
adoption
New CPT code, effective January 1, 2013
New OVA500 study confirms the original pivotal
study, supporting guidelines for OVA1 as a new
standard of care for Ovarian Tumor risk assessment
Unique strengths and firsts equip Vermillion
with a re-usable biomarker translation playbook
Broad patent portfolio supports corporate
strategy
Key Takeaways
27
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NASDAQ:VRML
Corporate Headquarters
Vermillion, Inc.
12117 Bee Caves Rd.Austin, TX 78738
Tel: (512) 519.0400
Fax: (512) 439.6980
www.vermillion.com
Investor Relations
Ron Both
Liolios Group, Inc.(949) 574.3860
28
Contact Information
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NASDAQ:VRML
APPENDIX
29
Hi i l Fi i l I f i
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NASDAQ:VRMLHistorical Financial Information(Amounts in Thousands, Except Share and Par Value Amounts; Unaudited)
2012 2011
Assets
Current assets:
Cash and cash equivalents $ 8,007 $ 22,477
Accounts receivable 137 99
Prepaid expenses and other current assets 348 317
Total current assets 8,492 22,893
Property and equipment, net 142 216
Other ass ets - 2
Total assets $ 8,634 $ 23,111
Liabilities and Stockholders Equity
Current liabilities :
Accounts payable $ 525 $ 1,331
Accrued liabilities 1,074 2,592
Short-term debt 1,106 7,000
Deferred revenue 492 553
Total current liabilities 3,197 11,476
Non-current liabilities:
Long-term deferred revenue 770 1,224
Other liabilities - 52
Total liabilities 3,967 12,752
Commitments and contingenciesStockholders equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, none
issued and outstanding at December31, 2012 and 2011 - -
Common stock, $0.001 par value, 150,000,000 shares authorized;
15,200,079 and 14,900,831 shares issued and outstanding at
December31, 2012 and 2011, respectively 15 15
Additional paid-in capital 328,097 326,796
Accumulated deficit (323,445) (316,299)
Accumulated other comprehensive loss - (153)
Total stockholders equity 4,667 10,359Total liabilities and stockholders equity $ 8,634 $ 23,111
December 31,
30
Hi t i l Fi i l I f ti
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NASDAQ:VRMLHistorical Financial Information(Amounts in Thousands, Except Share and Per Share Amounts; Unaudited)
31
2012 2011 2012 2011
Revenue:
Product $ 1,029 $ 755 $ 1,640 $ 1,469
License 113 113 454 454
Total revenue 1,142 868 2,094 1,923
Cost of revenue:
Product 32 24 131 129
Total cost of revenue 32 24 131 129
Gross profit 1,110 844 1,963 1,794
Operating expenses:
Research and development(1) 333 1,168 2,216 5,387
Sales and marketing(2) 931 1,219 4,653 5,539
General and administrative(3) 1,127 1,527 4,508 8,509Total operating expenses 2,391 3,914 11,377 19,435
Loss from Operations (1,281) (3,070) (9,414) (17,641)
Interest inc ome 5 9 28 64
Interest expense (9) (66) (206) (396)
Gain on sale of instrument business - - 1,830 -
Gain on litigation settlement, net - - 710 -
Change in fair value of warrants - 4 - 378
Reorganization items - (22) 88 (96)
Other expense, net (90) 10 (182) (99)
Loss before i ncome taxes (1,375) (3,135) (7,146) (17,790)
Income tax benefit (expense) - - - -
Net loss $ (1,375) $ (3,135) $ (7,146) $ (17,790)
Loss per share - basic and diluted $ (0.09) $ (0.21) $ (0.48) $ (1.25)
Weighted average common shares us ed to compute basi c a nd dil uted net
loss per common share 15,124,012 14,866,848 15,010,868 14,249,570
Non-cash stock-based compensation expense included in operating expenses:
(1) Research and development 28$ 96$ 127$ 686$
(2) Sales and marketing 55 36 203 158
(3) General and administrative 413 182 965 2,446
Three months ended December 31, Year Ended December 31,
Renowned Clinical Partnerships
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Fred Ueland (U Kentucky) OVA1 validation & launch
Dr. J. Cooke (Stanford) & Dr. W. Hiatt (U. Colorado) PAD studies
Robert Bristow (UC Irvine) OVA500 and follow-on publications
Further collaborations expected to be announced in 2013
Independent Clinical Studies Program
Low-cost clinical research collaborations on 2nd-tier priorities
VRML offers FOC testing and biomarker/algorithm support in return for 1st
right of refusal on IP licensing and product opportunities
PRs & publications further drive Vermillion brand recognition & credibility
Current or proposed collaborations on expanded claims, novel patient
management protocols, BRCA patient monitoring, prognosis & recurrence
Renowned Clinical PartnershipsSet the Stage for Success(1)
32(1) Estimated. Expected milestones are not placed in any specific order within years.
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SUPPLEMENTAL OVA1 SLIDES
Why it works: OVA1 Score Correlates
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Why it works: OVA1 Score Correlateswith Probability of Malignancy4
Research has shown that
as the OVA1 score
increases, there is an
increasing probability ofovarian malignancy
Percent of Elevated OVA1 Score Having Malignancy
344. Ueland FR, DeSimone CP, Seamon LG, et al. Obstet Gynecol. 2011;117(6):1289-1297.
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NASDAQ:VRMLValidated Through 44 Clinical Sites4,6,7
Study 1 sites: 17
Study 2 sites : 17
Study 1 & 2 sites: 10
Total: 44
Two prospective clinical trials
>1,000 adnexal surgeries >250 various malignancies
3 separate publications
4. Ueland FR, DeSimone CP, Seamon LG, et al. Obstet Gynecol. 2011;117(6):1289-1297.
6. Miller R, Smith A, DeSimone C, et al. Obstet Gynecol. 2011;117(6):1298-1306.
7. R.E. Bristow et al. / Gynecologic Oncology 128 (2013) 252259 35
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OVA1 (n=) 39/40 52/52 57/68 149/161
ROMA(n=) 9/12 36/36 27/41 72/89
4. Ueland FR, DeSimone CP, Seamon LG, et al. Obstet Gynecol. 2011;117(6):1289-12978. ROMA (HE4 EIA + Architect CA125 II) Instructions For Use, 2011-09, Fujirebio Diagnostics, Inc.
Comparison with ROMA Algorithm
36
Risk Stratification Sensitivity of OVA14
& ROMA8
98% 100%
84%93%
75%
100%
66%
81%
Early Stage Late Stage Non EOC All Cancers Studied
OVA1 maintains a high level of sensitivity across a broad range of malignancy subtypes
OVA1 provides a minimal rate of cancers missed of 7% compared to 17%
New AMA CPT Code a Watershed
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AMA assigned a unique Category 1 CPT
Code to OVA1 effective January 1, 2013
Replaces physicians use of problematic
generic code when billing insurance
companies
Code streamlines claim processing
Approval supported by several peer-
reviewed publications and positive
insurance coverage decisions, including
Medicare
CMS (Centers for Medicare & Medicaid
Services) will use gap-fill process to
determine CPT code Medicare pricing using
1st year data
New AMA CPT Code a WatershedIndustry Milestone
37
CPT (Current Procedural
Terminology) codes are published
by the American Medical
Association (AMA)
They provides uniform language
that accurately describes medical,
surgical, and diagnostic services.
Q Di i Alli
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NASDAQ:VRMLQuest Diagnostics Alliance
Est. Market,Annual TestsCurrent OVA1Sales
ReferenceLabs 90,000 18%
PhysicianOffices 60,000 0%
Untappedmarket
HospitalLabs 150,000 0%
Quest providing logistic, billing, and collection support
Vermillions 9 sales reps primary drivers of sales
Company planning on increasing sales reps in select territories with
insurance coverage to ramp sales growth
Over 5,500 physicians have ordered OVA1
Along with de-novo growth, objectives will be to increase organic growth
with key initiative to drive reorder rates
38
Summary of Vermillion's Diagnostic
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28 new patents (WW) granted or allowed since January 2011
4 new ovarian biomarker patent families acquired from Correlogic
>65 patents pending across disease areas in U.S. and abroad
39
Disease Area
Patents Granted
FamiliesU.S. Non-U.S. Total
Ovarian cancer 5 27 32 14
Breast cancer 1 1 2 3
Alzheimer's disease 3 6 9 3
PAD 6 2 8 4
Other 11 10 21 8
TOTAL 26 46 72 32
Summary of Vermillion s DiagnosticPatent Portfolio
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Vascular Medicine ProgramRisk Assessment for PeripheralArtery Disease (PAD)
PAD Unmet Need & Market
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What is Peripheral Artery Disease? 10 million people with PAD in the U.S. many
undiagnosed
11
Prevalence high in diabetic and elderly
populations, both to grow in coming years
Total at-risk population totals 59+ million
Early diagnosis and treatment of PAD could
prevent disability and save lives12
Currently no blood test for PAD and no reliable
or practical diagnostic alternatives
PAD Unmet Need & MarketOpportunity
41
In the next five years, 1 in 4 patients
with PAD will suffer a heart attack,
stroke, amputation or death.13
11. Society for Vascular Medicine, June 2012
12. PAD Coalition 1Q 2008
13. PARTNERS study (Hirsch et at, JAMA 2001)14. American Heart Association Recommended Testing
At Risk Group14 U.S. Population(Millions)
Diabetics aged 50+ 13
Smokers aged 50+ 20
Elderly aged 65+ 38
Group Overlap (12)
Total At-Risk Population 59 Million
Normal ArteryPAD-Inflicted Artery
(atherosclerotic)
Positive Results from PAD Intended
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1,025 subjects were studied by researchers at
Stanford Univ. School of Medicine and Univ. of
Colorado
Vermillion's biomarker test identified PAD in 17 of
20 (85%) of patients missed by using conventionalclinical assessment alone
Results were published in the prestigious peer-
reviewed journal, Vascular Medicine15
Currently seeking strategic partner(s) to further
PAD development & commercialization
Positive Results from PAD IntendedUse Study
PAD study results published in
Vascular Medicine, Oct. 2012
Results indicate this biomarker
model is a useful adjunctive tool
thatadds independent value to a
clinical risk score in the target
population of low to moderate
Framingham risk.