the power of information - great basin · 2018. 7. 20. · focus on small – medium hospitals...
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The Power of Information
December 2014 Ryan Ashton – Co-founder and CEO
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Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements that involve significant risks and uncertainties, including those discussed in this presentation and others that can be found in the “Risk Factors” section of the quarterly report on Form 10-Q of Great Basin, filed with the SEC on November 14, 2014. All statements other than statements of historical facts, included in this presentation regarding our strategy, future operations, future financial position, future net sales, projected expenses, products’ placements, performance and acceptance, prospects and plans and management’s objectives, as well as the growth of the overall market for our products in general and certain products in particular and the relative performance of other market participants are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievement to be materially different from those expressed or implied by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or will occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date hereof or to conform these statements to actual results or to changes in our expectations.
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Focus on Small – Medium Hospitals
Great Basin - Primed for growth
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§ Positioned for growth • >100 Customers worldwide • Sales grew 83% YOY in 1st 9 months of 2014 • One FDA-cleared test – 2nd submitted to FDA • Two add’l tests approaching clinical trial
§ Only Company with technology for 3 Keys to Success • Sample-to-result • Low cost • Menu of low-plex and multiplex tests
§ Rich Product Pipeline • Low-Plex
• Group B strep – 510(k) submitted • E Coli – Trial start in Q1 2015 • SA Pre-surgical Screen – Development complete Q2 2015
• Multiplex • Staph blood Panel – Q4 2014 trial start • GI Panel – (food borne) 1st half 2015 trial start
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The Target Market: Hospital Labs
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Tests § Gastrointestinal Infections: 20-25MM § Blood Infections 15-25MM § Respiratory Infections 30-40MM § MRSA Surveillance 40-60MM
100MM – 150MM tests World Wide > $1.25B - 1.5B Addressable Market
Source: Company es0mates
Industry undergoing a paradigm shift to molecular
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Specific Example: Blood Sepsis
MDx Testing: Improves Outcomes & Lower Costs
Problem:
§ Hospitals are responsible for all treatment costs for Medicare patients that get Staph Aureus or MRSA infections
§ Hospitals are seeking cost-effective, automated solutions for prevention and detection
Outcomes:
§ MDx allows for rapid diagnosis and treatment
§ Reduces incidence and spread of disease
Costs:
§ Length-of-stay reduced by 6.2 days
§ Saves an average of ~$7,000 per incidence
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Still Waiting for the right solution
Target Customer – <400 Beds
~2,000 hospitals performing molecular tests
Source: AHA Annual Survey
2,577 1,005
1,119 272
<100
100-‐199
200-‐499
>500
US Hospitals By Number of Beds
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Customers want three things in MDx:
The Unmet Need
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1. Automated workflow
2. Powerful test menu
3. Ra0onal test and instrument cost
We believe fewer than 50% of tests in a hospital lab are molecular. Top two reasons for not switching are cost and ease of use.
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Highly SensiAve End-‐Point DetecAon – Creates industry-‐leading menu versaAlity and cost
Standard DetecAon
HRP
HRP
amPED DetecAon
§ Inexpensive and highly scalable ($0.10 per chip today) § Up to 64 targets per chip § Sensitivity adequate for direct from specimen detection
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Designed with the Customer in Mind
Our MDx platform -
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§ Executes the test § Provides electronic output to the clinician § Off-the-shelf components keeps cost low
§ Single-Use § Up to 64 answers per specimen § Same cartridge for all new tests § Designed for low-cost and manufacturability
Analyzer
Cartridges
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Leadership in the “Three Cs”
Great Basin Offers Winning Solution
Cost: Low-Cost
✓ ✓
Content: Low-plex Multiplex
✓
✓
✓
✓
✓
✓ Convenience: Sample to Result
✓ ✓ ✓ ✓
(1)
(1) S0ll in development 10
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Customer Experience: Workflow is Faster and Easier
How We Win: Easy to Use “Sample to Result”
Results Results Results
Reader
2 Walk-‐Away
Points
Results
6-‐10 Hands on Steps 18-‐25
Hands on Steps 16-‐23
Hands on Steps
Instrument Instrument
Instrument
Instrument
Results
Instrument
3-‐5 Hands on Steps 3-‐5 Hands on Steps
2 Walk-‐Away
Points
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Labs need both Low-plex and Multi-plex: Only GBSN delivers both
Broadest Potential Menu in the Industry
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Multi-Plex Market More Answers/Higher Cost • Gram Positive Blood Sepsis • Gram Negative Blood Sepsis • Respiratory • Stool • Vaginosis/Vaginitis
Low-Plex Market 1-3 Answers, Lower Cost • MRSA • C. diff • CT/NG
• Meets all needs of the Lab • Provides pricing power • Allows for Trojan Horse placements to unseat competitors
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Great Basin Product Pipeline
New Tests Make our MDx Platform More Attractive
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Available Now
Available Jan-June 2015
Available July-Dec 2015
C. diff
Group B Strep
Staph ID/R
STEC
MRSA/SA Pre-Screen Food-borne Pathogens
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Generate Recurring Revenue Stream
The Affordable Model – “Vending Machine”
§ No long capital equipment sales cycle
§ “You pay only for a result”
§ Recurring cartridge sales
§ Follow-on tests: Faster, easier sale
No-cost “vending machine” model drives faster market share growth
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71% Molecular = 71% win rate *
Customer Response Has Been Very Positive
3 Criteria Met = Success
*Decision by lab manager to switch to Great Basin during 12-‐month period.
Non-‐Molecular : Example of win rate *
Molecular: Example of win rate *
ü Selling model generates high success rate ü Short Ame from evaluaAon to decision
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Wins Wins
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Intend to Develop Rich Menu of Low-plex and Multi-plex Tests
Great Basin Pipeline
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2014 2015 2016 2017 2018
2 6
12
20
1
4
8
11
14
Mul0-‐plex Low-‐Plex
1
6
14
23
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Potential Annual Revenue per Customer*
New Products’ Revenue Potential
*Based on assumption that customers reach projected usage levels of all five tests, including four tests pending at the FDA or currently in development.
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$-‐
$50,000
$100,000
$150,000
$200,000
$250,000
Q4 2014 Q2 2015 Q4 2015 Q4 2016
SA Pre-‐Surgical/MRSA Nasal Screen
Food Borne
Staph ID/R
Group B Strep
C. Diff
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Financial Highlights
§ GSBN completed IPO for $8 million in stock and warrants
§ As of September 30, 2014 – Cash Balance - $0.7 million
• $7.1 million pro-forma including net proceeds from the IPO(Note 1) – YTD Revenue = $1.2 million
• Compared to $0.8 million for 12 months ended 12/31/13 (already up 50% vs. full year 2013)
– 3rd Quarter Revenue = $0.4 million • 83% growth YOY • Recurring revenues
– 5.1 million shares outstanding
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Note 1 – Proforma cash balance
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Commercially-Focused Management Team
Ryan Ashton Chief Executive Officer
Robert Jenison CTO, SVP - Research
Jeffrey Rona Chief Financial Officer
Laurence Rea Chief Engineer
Sandra Nielsen VP - Sales and Marketing
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Why GBSN will win
Summary - Primed for growth
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§ Large under-penetrated market § Technology designed for the 3 Keys to
Success § Rich Product Pipeline increases Revenue
per Customer § Strong Management Team
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The Power of Information
Thank You