GlobalResearchLifeSciencesDiagnosticTools2020UBSGenomics2.0:TheAscentContinues,OpportuntiesAboundBottomLine:GrowthIsSignificant,We'reEarly,OpportunitySetisExpandingWeheldthe2020Genomics2.0Summitlastweek(21panels,34speakers).Genomics,utilityisexpandingacrossnumerousmarkets,whichcombinedwithburgeoningscientificdiscoveries,favorableregulatoryreimbursementtrends,andtechnologicalinnovation,areleadingtobiggerTAMs,acceleratinggrowthandalargersetofinvestableideas.Clientinterestwasatrecordlevelswithroomtoproliferate,asinvestorsresearchthemarketopportunitiestoidentifywinners.It'sanexcitingtime.WhafsNewFromThe2020Summit?WehadabiggerfocusonclinicalNGS(coveringvariouschannels,stagesofcancerandgeneticdisease),whichrepresentsthefatestgrowinglargestmarket.COVIDtestingwasalsonew,whereNGSwasdebatedanddiscussed.Wealsohadgreatergenomics*customerparticipation,acrossMRD,3DSpatialandgenomicstechnology.5KeyTakeawaysfromthe2020Summit(1)ClinicalNGSisproliferating,withlatestagetherapyselectionpenetrationrising,whileMRDScreeningadvancequickly,plusongoingexpansioningeneticconditions;thefocus/importanceofliquidbiopsyisrising;(2)ReimbursementRegulatorybackdrophasimprovedfurthervs.2019;(3)3DSpatialremainsakeynewtechnology;whileclinicaluptake(replacingIHC)isnotonthehorizon,researchtranslationalopportunitiesaresignficant;(4)POPSEQcountryeffortsstalled(〜COVID)butmomentumremains,theTAMislarge,IDNsareseeinguilityanattractiveROI;(5)There'sacasetosignificantlyrampCOVIDtestingwithNGSpotentiallyplayingarole.HowToInvestinGenomics2.0AmongstourCoverage?WebelieveILMNisthekeybeneficiaryandthelongtermpictureremainsattractive(arguablymoresoposttheevent),thatsaid,resultshavebeenmixedhenceasustainedgrowthaccelerationwillbekeytorestoringconfidence.WebelieveNSTGFLDMarewellpositionedtobenefitfrom3DSpatial(ourdiligencefavorsGeoMx),whileFLDMhasupsidefromCOVIDtesting.TMO,A,PKI,QGENalsoarepotentialbeneficiariesbutexposuresaresmaller.Severalpresentingcompaniesnotcoveredareexposedtothesetrends(ADPT,GH,NVTA,TWST,TXG).EXASfacespotentialrisksfromseveralcompaniesattheSummitwhoexpressedincreasedoptimismfortheclinicalperformanceoftheirassays.19August2020EquitiesAmericasHealthcareDanBrennan,CFAAnalyst+1-212-7132317JohnSourbeerAnalyst+1-212-713-7983NathanTreybeckAssociateAnalyst+1-212-7132392ThisreporthasbeenpreparedbyUBSSecuritiesLLC.ANALYSTCERTIFICATIONANDREQUIREDDISCLOSURESBEGINONPAGE44.UBSdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.InvestorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdeciFutureofSpatialTheUSpanelistsbelievethatuseofspatialinroutineclinicalsettingwilltakesometime(needbetterprecision,higherthroughput);whiletheBodenm川erismorebullishontimelinesforexpansionofspatialintotheclinic(hislabalreadyusesimagingmasscytometry(Hyperion)fortumorprofiling).Ultimately,theclinicalmarketwouldbethelargestforspatialtech.Withinoncology,theremaybepocketswherethecurrenttechnologycouldberelevantfortheclinicalmarket.■ThemarketforspatialinTranslational/Discoveryishuge.Akeydriverismanyresearchersaretryingtospecificallypredictpatientoutcomes(mainlyinimmunotherapy)wheretheseproductsaperfectfit(thoughcantaketime).Theproteinmassspectrometrymarketcanbeagoodcomparatorfortheplacementopportunityind...