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Interpace Diagnos/cs PRESENTATION, DECEMBER 2017 IDXG

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Page 1: Interpace Diagnostics Group Presentation

Interpace Diagnos/cs PRESENTATION, DECEMBER 2017

IDXG

Page 2: Interpace Diagnostics Group Presentation

Forward Looking Statements   ThisInvestorPresenta/oncontainsforward-lookingstatementswithinthemeaningofSec/on27AoftheSecuri/esActof1933,Sec/on21EoftheSecuri/esExchangeActof1934andthePrivateSecuri/esLi/ga/onReformActof1995,rela/ngtoInterpaceDiagnos/cGroupInc.’s(“theCompany”)futurefinancialand opera/ng performance. The Company has aTempted to iden/fy forward looking statements by terminology including "believes," "es/mates,""an/cipates,""expects,""plans,""projects,""intends,""poten/al,""may,""could,""might,""will,""should,""approximately"orotherwordsthatconveyuncertaintyoffutureeventsoroutcomestoiden/fytheseforward-lookingstatements.Thesestatementsarebasedoncurrentexpecta/ons,assump/onsanduncertain/esinvolvingjudgmentsabout,amongotherthings,futureeconomic,compe//veandmarketcondi/onsandfuturebusinessdecisions,allofwhicharedifficultor impossible topredictaccuratelyandmanyofwhicharebeyond theCompany's control. These statementsalso involveknownandunknownrisks,uncertain/esandotherfactorsthatmaycausetheCompany'sactualresultstobemateriallydifferentfromthoseexpressedorimpliedbyany forward-looking statement. Known and unknown risks, uncertain/es and other factors include, but are not limited to, the Company's ability toadequatelyfinancethebusiness,itsabilitytorestructureitsliabili/esandotherobliga/ons,themarket'sacceptanceofitsmoleculardiagnos/ctests,itsability to retain or secure reimbursement, its ability to secure addi/onal business and generate higher profit margins through sales of its moleculardiagnos/ctests,in-licensingorothermeans,projec/onsoffuturerevenues,growth,grossprofitandan/cipatedinternalrateofreturnoninvestmentsandourability tomaintainourNASDAQ lis/ng.Addi/onally,all forward-lookingstatementsaresubject to the risk factorsdetailed from/meto/me in theCompany'sfilingswiththeSecuri/esandExchangeCommission(SEC),includingwithoutlimita/on,theAnnualReportonForm10-KfiledwiththeSEConMarch31,2017andtheamendmentonForm10-K/AfiledonApril28,2017,theCompany’sQuarterlyReportsonForm10-QfiledwiththeSEConMay12,2017, August 10, 2017, and November 13, 2017, and the Company’s Registra/on Statement on Form S-1 (333-218140, the “registra/on statement”).Becauseof theseandother risks,uncertain/esandassump/ons,unduerelianceshouldnotbeplacedonthese forward-lookingstatements. Inaddi/on,thesestatementsspeakonlyasofthedateofhereofand,exceptasmayberequiredby law,theCompanyundertakesnoobliga/ontoreviseorupdatepubliclyanyforward-lookingstatementsforanyreason.TheCompanyhasfiledtheRegistra/onStatement(includingapreliminaryprospectus)withtheSecuri/esandExchangeCommission(SEC)fortheofferingforwhichthisInvestorPresenta/onrelates.Beforeyouinvest,youshouldreadthepreliminaryprospectuscontainedintheCompany’sRegistra/onStatementandotherdocumentstheCompanyhasfiledwiththeSECformorecompleteinforma/onabout the Company and this offering. The preliminary prospectus and the Registra/on Statement may be accessed through the SEC’s website atwww.sec.gov.Alterna/vely,theCompany,anyunderwriteroranydealerpar/cipa/ngintheofferingwillarrangetosendyouthepreliminaryprospectusifyourequestitthroughMaximGroupLLC,405LexingtonAve,NewYork,NY10174,ATn:ProspectusDepartmentorbyTel:(800)724-0761. ThisInvestorPresenta/oncontainssta/s/csandotherdatathathasbeenobtainedfromorcompiledfrominforma/onmadeavailablebythirdpar/esserviceproviders.TheCompanyhasnotindependentlyverifiedsuchsta/s/csordata.

Page 3: Interpace Diagnostics Group Presentation

 Weareafullyintegrated“commercial”companythatprovidesmolecularanddiagnos8ctestsand

pathologyservicestoevaluatetheriskofcancerbyleveragingthelatesttechnologyinpersonalized

medicineforbe<erinformedclinicaldecisionsandimprovedpa8entmanagement.

Our Mission

Page 4: Interpace Diagnostics Group Presentation

Investment Highlights

NASDAQListedLiquidStock

InternalReimbursementCapabili>es

DedicatedSalesOrganiza>onof

26

Raised~$20MSinceEndDec

2016

MedicareandPrivate

Insurancecoverage

39%YoY(2015vs.2016)

RevenueGrowth

Long-termDebtFree

4ProductsInTheMarket

Page 5: Interpace Diagnostics Group Presentation

Inconclusive Biopsy: Uncertainty Drives Need for Molecular Tes/ng

IndeterminateResults

DiagnosticBiopsy

Unnecessary Surgeries

Wrong Treatment

DelayedTreatment

MolecularDiagnos>csimprovepa>entoutcomesandresultinsignificantcost

savingstothehealthcaresystem

Molecular Diagnostics

ImprovedOutcomes

Significant Cost Savings

Appropriate Surgery

Non-SurgicalFollow up

Therighttreatmentforthepa8ent

attheright8me

Page 6: Interpace Diagnostics Group Presentation

APrac/ve Molecular Business Model

 VersusDrugs,Diagnos>cshave:-  LowerDevelopmentalCosts-  LowerDevelopmentalRisk

-  Faster8metomarket

-  Lowerregulatoryhurdles

2014AmericanThyroidAssocia>onRevisedGuidelinesMolecularDiagnos8cstestsshouldbeconsideredforsuspicionofmalignancyorindeterminate.

2013NCCNGuidelinesMolecularDiagnos8csrecommendedtes8ngonsomeindeterminatecytologiestominimizeunnecessarysurgeries

2016ASGEGuidelinesRecommenda8onno.4suggestsuseofPancraGenshouldbeconsideredwhencystsareindeterminatebasedoncytology

CurrentPancrea>cCystsGuidelinesSendaiguidelines2012andACGguidelines2007stronglyfavorsurgicalresec8onbecauseoftheinabilityoffirst-lineteststopredictbiologicalbehaviorandaggressiveness.

De-RiskedBusinessModel StrongGuidelineSupport

Drugs&

Diagnos+cs&

Development&Costs&

Development&Timelines&

Regulatory&Risk&

$800M+&

$3M&

8>10&yrs&

1>3&yrs&

FDA&Review&

LDTs&

(includingFDAreview)

Page 7: Interpace Diagnostics Group Presentation

Risk-Stratifies

Pancreatic Cysts

Over 71M Lives Covered

Integrated Molecular

Pathology test

Risk-Stratifies

Barrett's Esophagus

Soft Launch Began In 2017

Integrated Molecular

Pathology test

NGS panel for

Thyroid Cancer

Over 250M Lives Covered

Rules In Thyroid Cancer

Micro-RNA Classifier

Over 250M Lives Covered

Rules Out Thyroid Cancer

Interpace Diagnos/cs’ Product PorRolio

$300M-$370M*Pancrea8cCysts

$1.5B-$2B*Barre<’sEsophagus

$350M*ThyroidNodules

$350M*ThyroidNodules

*TotalMarketopportunity,CompanyEs8mates,www.endocrineweb.com,C.Huretal.Gastroenterology,(May21,2012).

Lung Cancer: Metastatic vs.

Primary

Medicare Coverage in

place

Integrated Molecular

Pathology test

Upto$90M*MVPLung

Page 8: Interpace Diagnostics Group Presentation

Pricing & Reimbursement

Page 9: Interpace Diagnostics Group Presentation

PANCREATIC CYSTS CANCER RISK POWERED BY PathF inderTG®

Page 10: Interpace Diagnostics Group Presentation

Pancrea/c Cancer  NumberofNewUSCasesin2016:

45,000

◉  TheThirdLeadingU.S.CancerKiller

h<ps://seer.cancer.gov/stacacts/more.html

 NumberofUSDeathsin2016:

43,090

◉  5-yearsurvivalrate7.2%

NumberofNewUSCasesin2017:

43,090

16,870' 20,140' 24,500' 26,730'

40,610' 43,090'50,260'

155,870'

Bladder'Cancer'

Non8Hodgkin'Lymphoma'

Leukemia' Prostate'Cancer'

Breast'Cancer'(Female)'

PancreaIc'Cancer'

Colon'and'Rectum'Cancer'

Lung'and'Bronchus'Cancer'

Page 11: Interpace Diagnostics Group Presentation

PancraGEN Integrated Molecular Pathology

Imaging Cytology FluidAnalysis

MolecularDiagnos>cs

PathologistReview

PancraGen%[95%CI]

Sendai2012model%[95%CI]

PvalueforPancraGenvs.Sendai2012model

NPV 97.2[95.1-98.6] 97[93.7-98.9] 0.88

PPV 57.9[47.3-68.0] 20.8[16.2-25.9] <0.0001

ResultspublishedinleadingGIjournal,Endoscopy

PancraGENcaniden>fynon-progressorsaswellas2012Interna>onalSendaiGuidelines,howeverit’ssignificantlybeceratiden>fying

progressors

Elurietal.AmJGastroenterol2015;110:828–834;doi:10.1038/ajg.2015.152(9)

Page 12: Interpace Diagnostics Group Presentation

Significant Clinical Evidence

1Al-HaddadMA,KowalskiT,SiddiquiA,MertzHR,MallatD,HaddadN,MalhotraN,SadowskiB,LybikMJ,PatelSN,OkohE,RosenkranzL,KarasikM,GoliotoM,LinderJ,CatalanoMF.Endoscopy.2015Feb;47(2):136-46.doi:10.1055/s-0034-1390742

5ClinicalValida8onPapersPublished4ClinicalU8lityPapersPublished

1RegistryStudypublished5CostBenefitStudiesPublished

BudgetImpactModel

PancraGENestablishesanewstandardfortheprognosisanddiagnosisofpancrea>ccysts

Sendaiguidelines2012andACGguidelines2007stronglyfavorsurgicalresec8onbecauseoftheinabilityoffirst-lineteststopredictbiologicalbehaviorandaggressiveness.

Page 13: Interpace Diagnostics Group Presentation

PancraGEN Adop/on & Growth

ü250PhysiciansandHospitalsü  Over30,000testsperformedü  Interna8onalDistribu8on

Medicare

Page 14: Interpace Diagnostics Group Presentation

ENDOCRINE ONCOLOGY

Page 15: Interpace Diagnostics Group Presentation

Thyroid Nodules

^AmericanCancerSocietyh<p://www.cancernetwork.com/thyroid-cancer/thyroid-nodules-when-biopsy^* https://seer.cancer.gov/statfacts/html/thyro.html

56,870es>matednewcasesofthyroidcancerin2017.*

PrevalenceofThisCancer:In2014,therewereanes>mated726,646peoplelivingwiththyroid

cancerintheUnitedStates.*

ThyroidCancerIncidence*

◉  ~10-18MU.S.adultshaveNodules^◉  Es8mated525,00thyroidFineNeedle

Aspirates(FNAs)peryearintheU.S.andgrowing

Page 16: Interpace Diagnostics Group Presentation

Clinical Dilemma of Indeterminate Thyroid Nodules

Fina

l sur

gica

l pat

holo

gy d

iagn

osis

1,2

Non Diagnostic Benign Indeterminate* Malignant

Cytopathology Diagnosis

12%$6%$

23%$

62%$

97%$

77%$

0%#

20%#

40%#

60%#

80%#

100%#

Suspicious for Malignancy

*Indeterminate(FollicularLesion2)includesAtypiaofUndeterminedSignificance(AUS)/FollicularLesionofUndeterminedSignificance(FLUS)and(suspiciousfor)Hürthle/FollicularNeoplasm

1GharibH,etal.EndocPract2010.2WangCC,etal.Thyroid2011.

MolecularTes>ngValue:PreventUnnecessary

Surgeries

Page 17: Interpace Diagnostics Group Presentation

Data Comparison with Market Leader Test performance

[95% CI]

Combined mutation & miRNA testing

(ThyGenX + ThyraMIR)*

Mutation testing alone

(ThyGenX)*

Gene expression classifier with mRNA testing^

(Afirma®)

PPV(%) 74%[58-86] 81%[54-96] 47%[40-55]37%[23-52]

NPV(%) 94%[85-98] 64%[47-79] 93%[86-97]94%[79-99]

*Labourieretal.JCEM2015.^Alexanderetal.NJEM2012

ThyGenX™andThyraMIR™combina>ontes>ngcanaccurately“Rulein”and“Ruleout”theriskofmalignancy

ThyraMIR™measurestheexpressionof10microRNAsand,andthecombina>onwithThyGenX™,yieldsbothhighNPVandhighPPV

OnlycommercialtestthatcanbeperformedfromFNAand/orCytologySlides

ThyGenX™andThyraMIR™combina>ontes>ngaddressesaunmetclinicalneedformoreac>onableinforma>oninthemanagementofindeterminatethyroidnodules

Page 18: Interpace Diagnostics Group Presentation

Mul/ple Publica/ons Support Clinical Validity and U/lity of ThyGenX / ThyraMIR

Page 19: Interpace Diagnostics Group Presentation

ThyGenX / ThyraMIR Strong Adop/on & Growth

ü400PhysiciansandHospitalsü  Over15,000testsperformedü  LabCorpPartnershipü  Interna8onalDistribu8on

Medicare

Page 20: Interpace Diagnostics Group Presentation

BARRETT’S ESOPHAGUS RISK OF PROGRESSION TO CANCER POWERED BY PathF inderTG®

Page 21: Interpace Diagnostics Group Presentation

What is BarreP’s Esophagus? ◉  Gastroesophagealrefluxverycommon(10-20%USadults)◉  6%progresstoBarre<'sEsophagus(~3.3millionadults)

◉  Barre<'sEsophagusprecedesesophagealcancer(EAC)infrequently(1-3%)

◉  Abla8on(Barrx)hasemergedasatreatmentandpreven8onstrategy

◉  Currenttestscannotpredictwhichpa8entswillprogresstoEsophagealCancer–oneofthemostlethalcancers–crea8ngahighunmetneedforamoleculardiagnos8ctest

Page 22: Interpace Diagnostics Group Presentation

How May BarreGEN Be Useful?

BarreGENcanallowformorepersonalizedmanagementofBarrec’spa>ents

AidInstrategiesto

preventcancerbyabla>on

Avoidunnecessary&expensive($30K)

recurringabla>on

Helpmonitorpa>entsduring

surveillance

Reduceoverallcostofcare

Page 23: Interpace Diagnostics Group Presentation

BarreGEN for BarreP’s Esophagus

$1.5-$2BPoten8al

~3.3MAdults

~850,000EndoscopicscreensAnnually

Source:Indica8onsandOutcomesofGastrointes8nalEndoscopy,2009

PathfinderTG®plarormBarreGENClinicalExperienceProgram(CEP)launchedSeptember1st,2016

Page 24: Interpace Diagnostics Group Presentation

Mul/ple Publica/ons Support Clinical Validity and U/lity of BarreGEN

Page 25: Interpace Diagnostics Group Presentation

METASTASIS VS. NEW PRIMARY CANCER - LUNG POWERED BY PathF inderTG®

MVPdx

Page 26: Interpace Diagnostics Group Presentation

222,500NewlyDiagnosedCases/Year

No.1LeadingCauseofDeathinMen&Women

No.2NewCancerIncidenceinBothMen&Women

Page 27: Interpace Diagnostics Group Presentation

Lung Cancer Sta/s/cs  NumberofNewUSCasesin2017:

222,500

◉  LeadingU.S.CancerKiller

h<ps://seer.cancer.gov/stacacts/more.html

 NumberofUSDeathsin2017:

155,870

◉  5-yearsurvivalrate18.1%

16,870' 20,140' 24,500' 26,730'

40,610' 43,090'50,260'

155,870'

Bladder'Cancer'

Non8Hodgkin'Lymphoma'

Leukemia' Prostate'Cancer'

Breast'Cancer'(Female)'

PancreaIc'Cancer'

Colon'and'Rectum'Cancer'

Lung'and'Bronchus'Cancer'

Page 28: Interpace Diagnostics Group Presentation

MVPdx (Lung Cancer) ClinicalIndica>ons•  Comparethemuta>onalfingerprintoftwoormore

cancersitestodeterminerecurrence/metastasisornewprimary(independent)cancer•  DefinePrimarysiteofforma8oninrela8onshipto

mul8plemetasta8cspread•  Differen8atemul8-centriccarcinomaversusintra-

organspreadofonecancer•  Differen8atelocalreoccurrenceversusintra-

organcancerforma8on

*BasedonCurrentMedicareReimbursement

Page 29: Interpace Diagnostics Group Presentation

MVPdx Lung 600+ Tests Performed To Date

Requisi8on SampleReport

Page 30: Interpace Diagnostics Group Presentation

MVPdx Suppor/ve Publica/ons

Page 31: Interpace Diagnostics Group Presentation

MVPdX Adop/on

ü  5BetaHospitals–Northeastü  Over600testsperformed

Medicare

Page 32: Interpace Diagnostics Group Presentation

FINANCIAL AND CORPORATE REVIEW

Page 33: Interpace Diagnostics Group Presentation

Select Financial Informa/on IncomeStatement 2016 2015 Q32017 Q32016 Q32017

YTDQ32016YTD

Revenue $13.1 $9.4 $4.2 $3.3 $11.5 $10.0

GrossProfit $6.4 $2.5 $2.1 $1.5 $5.8 $5.1

TotalOpera8ngExpenses $12.9 $42.9 $5.2 $8.0 $8.8 $18.3

LossfromCon8nuingOps ($8.4) ($31.1) ($3.4) ($7.2) ($7.8) ($14.7)

BalanceSheet

CashBalance(EndofPeriod) $0.6 $8.3 $11.7 $1.7

AccountsPayableandAccruedExpenses

$12.1 $9.9 $7.0 $11.4

Stockholders’Equity $6.5 $13.0 $36.4 ($1.5)

(InUSMillion)

Source:SECFilings,10-K

Page 34: Interpace Diagnostics Group Presentation

Patent PorRolio and Proprietary Assets

Thyroid 2USpatentspending,5ex-USPatentsPending

Pancreas

Barrett’s Esophagus

Proprietary

Extensiveexperienceinmanagingextremelylowquality,fixa>vetreatedclinicalspecimens.

Labinforma>onmanagementsystemthatextractsresultsfromdatabaseandallowsefficientintegra>onofmolecularandclinicalresults.

ProprietaryAlgorithmforThyraMIRClassifier.

Proprietaryextrac>onandmicrodissec>on,methodologyfromslides,BufferandFFPEsamples.

5patentsIssued

2patentsPending

Lung ProprietaryAlgorithm

Page 35: Interpace Diagnostics Group Presentation

Experienced Management Team

JackStoverPresident,CEO

GregRichardChiefCommercialOfficer

SydFinklestein,MDChiefScien8ficOfficer

JimEarlyVPCFO

GlennGershonSr.VP.Opera8ons

AlidadMireskandari,Ph.D.VPBusinessDevelopment

Page 36: Interpace Diagnostics Group Presentation

 Commercial◉  AETNANa8onalContract◉  CignaCoverage◉  OxfordCoverage◉  UnitedHealthCoverage◉  NYStateApprovalForThyGenX◉  LaunchedInterna8onal

Distribu8ons◉  EUPatentGrantedforThyraMIR◉  LabCorpCo-Promo8on◉  +250MThyroidlivescovered◉  +71MPancreasLivescovered◉  LabServicesAgreementsigned

withEinsteinMedicalCenterJune5th,2017

◉  LabServicesHoagHospital,CA

Recent Accomplishments  Corporate

◉  RevenueGrowth39%Y-O-Y

◉  Raisedover$14MinEquity

◉  Converted$9MInSecuredNotesintoStock

◉  Eliminatedmilestonepayments,liens&royal8esrelatedto2014RedPathAssetsAcquisi8on

◉  ReducedCashBurn$20MY-O-Y2015to2016

 Clinical◉  LaunchednewBiliaryproduct

October3rd,2016

◉  LaunchedAccuCEA™InsightsAugust1st,2016

◉  LaunchedPanDNAMarch,2017

◉  LaunchedBarreGen®ClinicalExperienceProgram(CEP)September1st,2016,andSo�launchedBarreGenatselectsites

◉  LaunchedCytopathologyServicesOctober1st,2016

◉  LaunchedCytologySlidesasprimaryspecimenOctober1st,2016

◉  LaunchedTERTmarkerofaggressivenessJune1st,2017

Page 37: Interpace Diagnostics Group Presentation

2017/18 Key Drivers of Growth

InternalDriversContractwithAetna&United

Healthcare(Thyroid)

ExpandingSalesForce

LaunchLungVer8calMVPdx

LaunchofThyGenXV2andTERTMarkerofAggressiveness

NewPancraGENstudies(GI)

Addi8onalLabServicesContracts

ExternalDriversSelec>veProductAcquisi>onsand

Alliances

StrategicPartnershipForBarreGEN

LeverageNewLabCorpContract

Page 38: Interpace Diagnostics Group Presentation

Why Invest in IDXG? Significant Financial

Progress

-  Strong, growing revenue (39% YoY 2015 to 2016) and reimbursement

-  NASDAQ listing fully compliant

-  Eliminated all of our secured debt and liens and eliminated royalty & milestone obligations from 2014 purchase of RedPath Assets

-  Demonstrated liquidity with our stock trading volume

-  $21M cash raised in last 6 months

-  ThyGenX V2 development underway

-  Thyroid registry launched

-  Completed development of Lung Vertical MVPdx

-  Multi-Center Thyroid study launched

-  Barrett’s CEP/Soft launch underway

-  Multiple presentations at key Scientific meetings planned for 2017

-  PancraGEN: 3 clinical utility studies underway

New Clinical and Product Development

-  26 Person Internal Sales Organization

-  In-house billing, reimbursement and collections expertise

-  Marketing and product launch expertise

-  AETNA & United Health approvals

-  All products covered by Medicare

-  250+ million lives covered for Thyroid test,71+ million lives covered for PancraGEN test

-  Launched MVPdx Lung 3Q 2017

Growing Commercial Capabilities

ASIGNIFICANTPARTNERINGOPPORTUNITYFORBARREGEN

Page 39: Interpace Diagnostics Group Presentation

Thank You