Kallyope Project - Executive Summary

The Problem:

Kallyope recently created their Human Genetics Platform (HGP) – an in-house developed system that Kallyope can leverage to identify novel targets through GWAS datasets. The platform is still in its early stages and Kallyope is interested in further developing the platform through external funding – additional expect development costs are expected to be around $70M. Furthermore, Kallyope would like to understand if the platform can be monetized as an alternative source of funds.

To best design the path forward, Kallyope needs to better understand the novelty of the platform and the potential funding avenues it could explore. Ultimately, we want to answer the following question, posed by our sponsors:

· To understand how to maximize the human genetics platform without compromising its strategic optionality for Kallyope

The Analysis:

· The US genomics market shows significant upside for Kallyope, with a current size of $27.81B and expected to grow at 19.4%CAGR until 2028, reaching a total size of $94.65B

· Diseases of interest for Kallyope represent a large overall market and/or have shown strong growth in the recent past

· Use cases of selected companies indicate proliferation of partnerships and collaborations in this space and competitors that show progress and success in the market

· BenevolentAI is a direct competitor to HGP and has been successful in its partnership with AstraZeneca, identifying 5 novel targets that were added to the pipeline, securing $15-20M of cash funding and establishing revenue/profit sharing rights

· 23AndMe could be a potential partner to provide additional data, however they have partnered with GSK to identify new targets which might place it as a direct competitor to HGP

· Other players have been successful achieving at least one partnership – BenevolentAI stands out as a competitor to HGP while other players tackle different stages of drug development, have approaches that are significantly different or have focused their efforts in different areas of medicine

The Recommendation:

· Kallyope should move forward with HGP – it provides access to a significant adjacent market that is quickly growing and improves Kallyope’s standing in this space. There is significant opportunity for HGP that indicates a worthwhile investment

· It is important that Kallyope moves quickly to create partnerships and strength HGP’s standing in this growing market

· Financing should be done through partnership/collaborations given strong viability and enabling Kallyope to use its funds for other purposes

· Kallyope should develop a clear structure for HGP’s development in order to ensure other priorities aren’t prejudicated

· Main risk Kallyope faces is a focus detraction from other priorities and initiatives – guardrails should be placed in order to avoid compromising other efforts while providing HGP with all the necessary resources

· HGP should be funded through partnerships/collaborations given the proven viability of such agreements and the potential to fully fund the platform without requiring reprioritizing resources