Advanced Assay Design Software for the iCycler iQ™ Detection System Launch package April 2002 Lab Devices Division Molecular Biology Business Unit NEW Design Software for the iCycler iQ System Beacon Designer from PREMIER Biosoft International Launch April 2002 Bio-Rad has become the recognized expert in the real-time PCR market by offering real solutions to meet customers’ needs. We plan to solidify our strengths by offering the complete solution to our customers with a truly advanced primer and probe design software product. Designing assays with this software for experiments on the iQ system will result in success for both customers in their laboratories and success for Bio-Rad in the marketplace. The real-time PCR instrumentation market is growing by 50% in the coming year, and primer/probe design packages directly support this growth. Real-time PCR requires different design and assay conditions than traditional PCR due to the high sensitivity of detection by the real-time PCR instrument. Performance on real-time instrumentation is directly tied to how well the assays are designed. There is a great need for intuitive tools to create the optimal assay. Currently, our customers must rely on field application specialists, technical support, and competitor information to design their assays. By offering this design software, we will give our customers the necessary tools and support to design for their assays. We are excited to introduce Beacon Designer software, an advanced probe and primer design software for real-time PCR assay design. This software does more than just design molecular beacons. It also designs optimal TaqMan® probes and primers. Easy-to-use features make designing for SNP detection effortless. It is unique in its ability to design for multiplex assays. The software is the only one linked to the Web for quick sequence retrieval from Entrez and dbSNP and the ability to BLAST sequences. The software was introduced to the iCycler iQ Field Application Specialists at the 2002 International Sales Meeting in Puerto Rico. Those of you who have had the opportunity to betatest this new software have given great feedback. This product will be available for iQ customers in April 2002. Please review the information and return the attached FAX back form by Friday, April 5th, so we can plan for an effective launch. Thank you! Larissa, Shannon, Hilary, and Steve 2 PRODUCT DESCRIPTION Beacon Designer is a probe and primer design software that designs optimal primer sets and probes for real-time PCR assays to be run on real-time PCR instruments, such as the iCycler iQ. This software was created by PREMIER Biosoft and is currently offered through their website www.premierbiosoft.com for $1885. Beacon Designer is one of many scientific software packages PREMIER Biosoft offers, but this is the only one we will be offering to our iQ customers. Bio-Rad will be distributing this product, and PREMIER Biosoft’s name will remain on the product. Why Beacon Designer? We chose this particular design software because of its open platform- you can choose the type of probe designed and the temperature parameters you need for your assay. The software originally designed molecular beacons only. Now it contains new features for TaqMan, allelic discrimination, and multiplex design. PREMIER Biosoft’s commitment to continually improve the product and responsiveness to customer feedback means that features we need will be incorporated in the future. In the software, you can select “Request Feature” which links you directly to their website to give them immediate feedback on this product. This is a key feature for improving the product. Does this mean we promote molecular beacons over TaqMan? No, because the iCycler iQ is an open platform system, we strive to meet all real-time PCR needs. For most applications, customers prefer linear/TaqMan probes because they are easily designed and synthesized, and produce robust results in real-time PCR assays. For some applications, molecular beacons may be the preferable chemistry. Beacon Designer was originally a program that designed molecular beacons only. Feedback from Bio-Rad R&D and other customers helped define the need for a software program that also designed for TaqMan, multiplex, and allelic discrimination assays. So PREMIER Biosoft incorporated these needed new features to Beacon Designer, and we believe the design software will further improve with feedback from our customers. 3 KEY FEATURES This software will be the first truly comprehensive primer and probe design package on the market because it offers design of two probe types (TaqMan and molecular beacons) and offers the most user flexibility in the design parameters. The software is distinguished in its ability to check the cross-homologies of the amplicon sequence by the integration of NCBI website to BLAST sequences and integration for direct retrieval of sequences from Entrez and dbSNP. Optimal primers and probes are designed due to the calculations using nearest neighbor Santa Lucia values and the evaluation of secondary structure of the primer and probe sequences. Feature This is the only software that designs molecular beacons with accurate calculations of arm and probe sequence and display of structures. The software designs optimal linear/TaqMan probes, with more flexible Tm parameters compared to ABI Primer Express. The algorithm provides the most accurate Tm calculation for the customers’ assays using nearest neighbor, Santa Lucia values, taking into account salt concentrations and GC content. This software designs TaqMan and molecular beacon probes to detect wildtype and mutant alleles. This is the only software that designs for multiplex by automatically evaluating primers and probes for cross homologies, with a graphical display of structures. This is the only software integrated to the web so that sequences can be retrieved immediately from Entrez using accession numbers and from dbSNP using assay IDs. The uniquely integrated BLAST feature automatically screens for the major cross-homologies of the amplicon sequence. Benefit This gives the customer more options for their assay design. The customer is in control of the design. The software designs truly optimized primers for molecular beacon and TaqMan assays. The customer can choose the best assay design to promote specificity for allelic discrimination. The customer can accelerate time to results for an optimized multiplex assay. The customer can begin design immediately, without having to modify the sequence. This ensures specificity of the product amplified from the designed probes and primers. 4 COMPETITIVE ANALYSIS The major competitors are Applied Biosystems (ABI) and Roche, who offer both real-time instruments and probe design software. The software offered is seen as completing the package of support to the customer from assay design to assay detection on the real-time instruments. The ABI Primer Express is widely recognized and accepted by its users, and it is used as a major selling feature. Roche launched their design package this year, which also completes their realtime PCR package. Roche Light Cycler Probe Design Software v. 1 $1000 This software can only design one type of probe, which works only on the Roche system. It can design for two types of assay- 1) quantitation and 2) mutation analysis. The software has welldesigned interface, very easy to use, and the user can print a detailed report. The major weakness is that this probe works well only on their system. Applied Biosystems Primer Express v. 2 $5000 This software can design two types of probes, TaqMan and TaqMan MGB probes. TaqMan MGB probes can be designed on this software only and bought only through Applied Biosystem. The software program displays features and sequences in a good format that is easy to view. The software designs for quantitation and allelic discrimination, but for allelic discrimination, the user has to evaluate the probe sequences himself. Manual is very large. The major weakness is that the user is restricted to the temperature parameters of Applied Biosystems, so program is very inflexible. PREMIER Biosoft Beacon Designer v. 2 $1885/ Bio-Rad Laboratories $1485 This software can design molecular beacons, unlike the other programs, and also TaqMan probes. The user may set the design parameters, with much more flexibility than Primer Express. Interface is simple, and streamlined so that a novice can have optimized primers and probes designed for him for quantitation, allelic discrimination, and multiplex assays. The major weaknesses are that the export of results is not as sophisticated, and the adjustments of user sequences is not as visual as the other two programs. However, PREMIER Biosoft’s commitment to improve this product and free upgrades will overcome these weaknesses. 5 COMPETITIVE ANALYSIS PREMIER Biosoft Beacon Designer Price in USD Applied Biosystems Primer Express Roche Applied Science Light Cycler $1885, $1485 for iQ customers $5000, included with system $1000 YES YES NO YES NO NO Designs TaqMan Probes Designs molecular beacons Designs for SNPanalysis YES YES YES Multiplex function to check for crosshomologies YES NO NO Integrated to web YES NO NO Tm calculations using Santa Lucia values YES NO NO BLAST sequences YES NO NO Input of sequences directly from Entrez and dbSNP Flexible Tm Parameters YES NO NO YES NO YES NO YES YES YES YES YES Can annotate sequences Results page 6 TARGET COG, PROPOSED PRICING STRATEGY Suggested List Price Cost of Goods PREMIER Biosoft’s Price $1485 USD $1010 USD $1885 USD The primary intent in offering this product is to generate increased sales of the iCycler iQ system by offering the complete iQ package with design software. The opportunity to bundle Beacon Designer software with new iCycler iQ sales enables us to increase the value of our real-time PCR detection system. New competitors in the instrument market, such as the Corbett Rotogene, Cepheid SmartCycler, and the Stratagene MX4000 do not offer probe/primer design software. Our main competitors Roche and Applied Biosystems do offer design software to accompany their instruments, which increases the perceived value of their system. However, both offer limited design software. We can maintain a competitive edge by offering the complete iQ system, one that offers support from assay design to assay detection. We extend this same support to the existing iCycler iQ customer base by offering this product at a discounted price from PREMIER Biosoft’s list price. This increases the value of being an iQ user. We strive to help customers succeed in their scientific efforts using our instrument, and now we have design software to aid in their efforts. Furthermore, the service demand on our field application specialists and technical support will be alleviated because customers will have more control in optimizing their assays. Design software will be a great benefit to Bio-Rad and our customers. Our distribution agreement with PREMIER Biosoft allows us to offer the Beacon Designer software only to iQ customers because we offer a customer base that would benefit from this software. We gain from this agreement because we are able to offer advanced design software that will continue to improve with feedback from our customers. In addition, we have the opportunity to work with a company that believes in being responsive to the needs of the researcher. MARKETING POSITION AND SALES STRATEGY The target customer will be current and new iCycler iQ users. iQ customers currently rely on the field application specialists, technical notes, and competitor software and technical notes for information on how to design probes for their real-time assay. Often times, they rely on the competitor’s inferior information regarding probe design. Current iQ customers are familiar with the complexity and time for assay design. There is a need to further support these customers with advanced design software to facilitate their assay design needs. Now, customers will be able to design their assays in minutes with Beacon Designer. You will be able to offer this software at a price with a significant discount from the vendor’s list. New iQ customers need a software program that maximizes the range and flexibility of our system. This software offers more than what the competitors’ offer, and PREMIER Biosoft’s commitment to continuous improvement ensures this design software will remain superior. By packaging this design software with the iQ system, you will be able offer the new customer a complete iQ package of support from assay design to assay detection. 7 ORDERING INFORMATION Catalog# 170-8734 iCycler iQ Beacon Designer Probe/Primer Design Software Product Code 1441 NOTE: This is a product available to iQ customers only. 1) An iQ serial number will be required to activate the product. 2) Each purchase allows three activation keys for three installs of the software. SPECIFICATIONS The software runs on Windows NT / 98 / 2000 / ME / XP and Mac OS X 10.1. Beacon Designer requires web access for full functionality of the features. The customer will receive a CD-ROM and instructions with a registration number. The demo version of the software is downloaded from the CD-ROM. The demo version generates a Machine ID for your computer and requires an activation key to convert it to a workable version. To obtain an activation key, the customer will have to email/fax/call PREMIER Biosoft with the registration number, Machine ID, and serial number of the iQ to obtain the activation key. The customer is given up to three activation keys for three Machine IDs/computers. This means a customer can install up to three copies of the software. 8 PROMOTION PLAN PROMOTION PLAN Print Advertising Bio-Rad will not directly advertise this software product by itself. It is a product that will help promote the iCycler iQ Detection System as a complete package from assay design to assay detection. The iQ print campaign for 2002 will include the design software as part of the iQ complete package. This will run in Quarter 2 of 2002 in April 18th and 19th issues of Science and Nature. Sales Literature The main point of sale piece/ promotional literature will be a two-sided 8.5’’ by 11’’ page. Front will have key selling points of the design software. Back will have the features, comparison to competitor info, and product ordering information. In addition to this, there will be a Quick Guide to using Beacon Designer, which outlines how to use the main features of this software. This will be the Bio-Rad signature piece to go with the PREMIER Biosoft product. For Amplification Group shared literature, the, the Complete iQ point of sale piece/promotional literature will contain information on the complete package offered for the iQ system- optical system, thermal cycler, reagents, and the design software. Also, the design software will also be part of the new iQ family brochure, containing point of sale pieces for all products offered for the iQ. Both of these will be available in Quarter 2 of 2002. Web Based Advertising/Promotion The iCycler website (www.bio-rad.com/iCycler) will feature a new “What’s New Section” which will have a link to Probe/Primer Design Software. This will open up the page for Beacon Designer with key points, Features section, Quick Guide section with figures, Competitor Section, and Ordering Information. Available Materials The powerpoint presentation of Beacon Designer from the 2002 sales meeting is posted on Livelink. An informative and brief multimedia tour of the software can be viewed and/or downloaded from the PREMIER website (www.premierbiosoft.com). This clear and informative multimedia tour is the most comprehensive way to become familiar with the software. FAX BACK form is attached 9 FAX BACK Bio-Rad Laboratories To: Larissa Tan Fax: (510) 741-5811 Life Science Group 2000 Alfred Nobel Drive Hercules, CA 94547 Tel: (510) 741-6336 From: Date: Thank you for taking the time to learn about the Probe and Primer Design Software- Beacon Designer. This product will be an exciting new feature to promote the iCycler iQ Detection System as a complete package to meet all needs of the real-time PCR instrument user. Please fill out the information listed below to help us ensure a successful launch and support your sales needs. Product Launch When will you launch this product? How many will you need, and when will you need them? Number/month: Date: Sales forecast for 6 months (number of units) April May July August June September Preliminary Promotion Plans How do you plan to launch the Probe/Primer Design Software? Training The multimedia tour provided by PREMIER Biosoft for Beacon Designer is an informative training tool for the software. Would you like more training, like a web conference for this product? 10 Regional Competitive Information Who is your main competitor? Which instrument? Which design software? ________ Are there any other competitors in probe design software that you expect to see? (Please describe) Please indicate any questions or comments you have regarding the Beacon Designer Probe/Primer Design Software? Thank you! Larissa Tan 11