Ion Proton Sequencer Jay Wyn; Liang Zhu; Yutong; Swathi; Magdeline; James

Ion Proton DNA Sequencer

Content

• Introduction

• Value Proposition

• Value Added – Cloud Service

• Value Capture

• Strategic Control

• Potential Market

What is DNA Sequencing?

• Process of reading

nucleotide bases in a DNA

molecule

• DNA Consist of four type

of bases:

• Thymine, Adenine, Guanine,

Cytosine

• Current DNA Sequencing is

called Next Generation

Sequencing (NGS)

Source: http://bioweb.wku.edu/courses/biol350/dnasequencing13/review.html

Why DNA Sequencing?

• Study of building blocks of humans and other organisms

• Study of bacteria virus, leads to better cure and

prevention

– 2011, outbreak of e-coli virus. DNA sequencing was used to

better understand traits like toxicity and immunity to which

antibiotic.

• Future, help with early detection or early warning that a

patient may have a certain disease

• Becoming very cheap, so it is becoming affordable

Key Players

• GS Junior System (Late 2009)

• GS FLX+ System (2008)

Roche’s 454

• Illumina MiSeq (2010)

• Illumins HiSeq (2010/2012)

Illumina

• Personal Genome Machine (PGM) (Late 2010)

• Ion Proton (2012)

Life’s Ion Torrent

• MinION

• GridION

Oxford Nanopore Technologies

Comparison

• Roche’s 454

• GS Junior, GS Flx+

• Uses Pyrosequencing

• Illumina

• Miseq, Hiseq

• Uses Solexa Sequencing

Ion Proton

• PGM, Ion Proton I

• Uses Semiconductor Sequencing

• Measures the hydrogen ion production during

polymerization of the DNA

Sequencing by Synthesis

Illumina and Roche

Pyrophosphate

Detection Using

Optics

Ion Torrent H+

Detection using an

Ion Sensor

Technology Comparison

• Detection of ion release is

simpler and faster than

optical method from 454

Sequencing and Illumina

• Ion proton uses

semiconductor, thus is able

to improve at a high rate in

the future

314 Chip (1.2 Million

Wells)

316 Chip (6.2 Million

Wells)

318 Chip (11.1 Million

Wells)

Proton 1 (165 Million

Wells)

Proton 2 (660 Million

Wells)

Moore’s Law

Threats

• Oxford Nanopore Technologies

• MinION (Disposable), GridION

• Uses nanopore sequencing, which measures

electric inductance of the nucleotides

Strategy Canvas for Life Technologies

0

1

2

3

4

5

Sc

ori

ng

Factors of Competition

Ion proton

illumina's HiSeq 2500

Fair comparison of Illumina’s HiSeq 2500 and Ion proton:

•Same time of release (10th January 2012)

•Both claims to sequence an entire genome

Value Proposition

Cheaper Faster Smaller

Ion Proton

Value Proposition

Machine price:

IP:149K

vs

Hiseq2500:$740K

IP: 2hrs

Vs

HiSeq2500: 27hrs

IP: Benchtop sequencer

Faster Smaller Cheaper

Seq price/genome:

IP:1K

vs

Hiseq2500:$3-5K

Higher throughput

Customer Selection

Research

Centres

Universities

Immediate

Users Government

vs

Private

(E.g. govt funded genome centres)

Final

User

Customer Selection

Consumer

products

Alternative

energy

Agriculture Genetic

Engineering

Drug

companies

Other Researchers

Targeted

drugs

Produce human-

compatible

proteins from

other organisms

Clothes,

furniture,

Bio-synthetic

detergents

Bio-Fuels,

Fuels from

Virus

More resistant

crops better

yields

Drug Development:

Traditional Value Chain

1990’s Value chain : Step-by-step

Improved value chain: Simultaneous activities

Role of Ion Proton

DNA sequencing with Ion Proton make target discovery faster

faster product development.

Value Chain Of Drug Development

Pharma

Global Market Analysis

If genome sequenced for < $1K…

New

Entries –

competition

Improvements SHAKE

OUT?

Seq.

Firms

App

Developers

Seq.

Instrument

Seq.

Techniques

Emerging Needs

Data

Processing:

Analyzing

and

interpreting

services

Head towards…

Capture

market share

to reap

benefits from

network

effects

Hardware

+

SERVICE

Cloud Service

Ion Reporter

Multisided platform

Enhanced Data Mobility

Future Development

Sequencing reads

Integrated Annotation

Configurable Analysis

Archiving

Ion Reporter

• Import, annotation, analysis, archive Reduce workload, shortening time

Flexible, reproducible

Standard

Ion Reporter

• Cloud based Cost-saving, highly secure

• Open source Allows inspection and improvements

• Aim to create Standard

Standard

Ion Reporter

Speed, Simple, Scalable, Secure

Multisided platform

• Clients --Our services -- App developers

Network Effect

Clients App developers/ Bioinformatics

companies

• Dynamic Eco-environment

Enhanced communication

Targeted problem-solving

• “One-stop shopping” for sequencing users

Enhanced

Data Mobility

• Sharing the info with greater ease

- Apps for desktop, laptop, iPad

• Monitoring progress; noticing results

Future Development

• Cooperate with Clinics and Hospitals to

build a non-profitable database for

treatment and research

• Improve healthcare services

• A one-stop workstation for our clients

Value Capture

Sales

Maintenance

Service

Cloud

4. Accept

request for one-

time or multiple-

time sequencing

1. Traditional

method, Short-

term primary

2. Free for a few

times and charge

subsequently

3. Rent out the

machine to

targeted

customers

5. Lisciencing/

Commision.

Long-term goal

Rental Rental

Machine

Cost (USD)

Cost per

Run (USD)

Sequencing

Run-Time

Throughput

Ion Torrent’s Ion

Proton I 149k 1000 2-4 hrs 10 Gb

Ion Torrent’s PGM

(318 Chip) 50k 750 2-3 hrs 1 Gb

Illumina Hiseq

2500 740k 23,000 27 hrs 120 Gb

Illumina Miseq 125k 965 1 day 4 Gb

Roche 454 - GS

FLX Titanium XL+ 150k 6000 23 hrs 700 Mb

Roche 454 - GS

junior 500k 1000 10 hrs 35 Mb

Value Capture

Sales/

Upgrades • Cheaper, Faster, Smaller

Value Capture

Sales

Maintenance

Service

Cloud

4. Accept

request for one-

time or multiple-

time sequencing

1. Traditional

method, Short-

term primary

2. Free for a few

times and charge

subsequently

3. Rent out the

machine to

targeted

customers

5. Licensing/

Commision.

Long-term goal

Rental Rental

Cloud

App developers

End user

Cash Flow

Tranditional

Activities

$

$ $

Strategic Control

Nature

• New entrants tend to utilize new

technology

• Semi-conductors DNA Sequencing

technology is hard to reverse-

engineer

Strategic Control

Patents

Potential market

Applications

Better diagnosis

Replace the current

invasive and costly

muscle biopsy test.

Better result

Improve the quality of

researches as well as

provide new directions

for researching.

Clinical research Mitochondrial Disease

Mitochondrial disease

• Mitochondrial disease

– A group of diseases which are characterized by

problems of decreased energy production.

• Muscle biopsy

– Invasive & costly (as high as $50.000).

– Complicated & time-consuming.

– Cannot produce absolute results.

• Benefits

– Cost: $1k + analyzing cost vs. $20k-50k.

– Time: A few days vs. 3-4 weeks.

– Quality: more absolute results.

Applications

Better diagnosis

Replace the current

invasive and costly

muscle biopsy test.

Better result

Improve the quality of

researches as well as

provide new directions

for researching.

Clinical research Mitochondrial Disease

Clinical research

• Improved quality

– Combine test results with test subjects’ genetic data to

derive more detailed results.

• Provide basis for personalized treatment.

– Build up a gene database that stores more than the raw

genetic data for future researches.

• New directions

– Discover the existence of previously unknown

mutations as origins of disease.

Clinical research

Network

effect

Research quality

More data + tools

=

Improved quality

Patient

More patients

=

More data

App developer

More researchers

=

More app developers

Researcher

More data

=

More researchers

Thank You