Great Basin Scientific — IPO Roadshow (September 2014)
27 slides from Great Basin Scientific's IPO roadshow presentation, Sep 9, 2014
Slide 1: The Power of Information
The Power of Information Powerful Molecular Diagnostics Platform September 2014 ISSUER FREE WRITING PROSPECTUS Filed Pursuant to Rule 433 Registration Statement No. 333-197954 Dated September 9, 2014
Slide 2: Free Writing Prospectus
Free Writing Prospectus Great Basin Scientific, Inc. (“Great Basin”, “we”, “our”, “us”, or the “Company”) is providing this presentation, which highlights basic information about us and the offering to which this communication relates. Because it is a summary, it does not contain all of the informat
Slide 3: Cautionary Note Regarding Forward-Looking Statements
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 Registration Statement on Form
Slide 4: Initial Public Offering Summary
Initial Public Offering Summary Issuer Great Basin Scientific, Inc. Exchange / Ticker NASDAQ / GBSN Securities Offering 2,500,000 units with each unit consisting of one share of common stock with one Series A warrant to purchase (i) one additional share of common stock, and (ii) one Series B warrant
Slide 5: Investment Highlights
Investment Highlights 1. Large, existing market—undergoing paradigm shift to modern technology 2. We have the low-cost and ease of use customers are waiting for 3. 77% win-rate* and sales traction validated in three sales territories 4. Recurring revenue model brings strong, sticky revenues. 5. Sign
Slide 6: Industry undergoing a paradigm shift to molecular
Industry undergoing a paradigm shift to molecular The Target Market: Hospital Labs Tests Gastrointestinal Infections: 20-25MM Blood Infections 15-25MM Respiratory Infections MRSA Surveillance 40-60MM 100MM – 150MM tests World Wide > $1.25B - 1.5B Addressable Market Source: Company estimates 30-40MM
Slide 7: Commercially-Focused Management Team
Name Position Past Experience Commercially-Focused Management Team Ryan Ashton CEO Extensive experience in driving successful marketing, sales, IPO and M&A strategies for advanced-technology companies SVP of Sales and Marketing at Megahertz Senior Officer at Inari CEO of Printelligent Coporation Rob
Slide 8: Commercial Stage – Primed for Growth
Commercial Stage – Primed for Growth The Company At Revenue and Growing – 102 Customers W.W. – 77% win rate for the most recent twelve months – Experienced Commercial Team Huge Existing Market Undergoing Paradigm Shift – Still in the early stages: only ~50% have adopted molecular c. diff, and other
Slide 9: DNA Amplification and Array-based detection
DNA Amplification and Array-based detection The Technology <90 Minutes to Answer + Accurate diagnosis = The correct treatment sooner
Slide 10: Proprietary Signal Amplification Technology (amPED)
Proprietary Signal Amplification Technology (amPED) Permits Direct from Specimen Detection Streptavidin Dextran Polymer • Patent Protected (U.S. #8,574,833) Standard Detection amPED Detection
Slide 11: Customers want three things in MDx
Customers want three things in MDx: The Unmet Need 1. Automated workflow 2. Powerful test menu 3. Rational 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.
Slide 12: Designed with the Customer in Mind
Designed with the Customer in Mind The MDx Platform Executes the test Provides electronic output to the clinician Off the shelf components keeps cost low Up to 64 answers per specimen Same cartridge for all new products Designed for low-cost and manufacturability Analyzer Cartridges
Slide 13: Slow. Labor intensive.
Slow. Labor intensive. Current Microbiology Lab Workfow Culture Sub-Culture Antibiotic Susceptibility Can take days to obtain a result
Slide 14: Sample-to-result = Simple workflow and fast, accurate results
Sample-to-result = Simple workflow and fast, accurate results Simple, sample prep Load cartridge in analyzer Results in ~90 minutes! Microbiology Lab Workflow with Great Basin
Slide 15: And What the Customer Wants…
And What the Customer Wants… The Need Met 1. “ Sample to Result ” format 2. Multiplexing capability with up to 64 answers per test 3. Rational customer cost model
Slide 16: No cost razor – Powerful razor blades
No cost razor – Powerful razor blades The Model – “Vending Machine” “You pay only for a result” Avoid long capital equipment sales cycle Follow-on products, a faster, easier sale Footprint, Footprint, Footprint
Slide 17: Latest Twelve Month “Win Rate” (US Only)
Latest Twelve Month “Win Rate” (US Only) The Customer Response * Where accounts have made a decision 77% aggregate win rate Non-molecular 85.2% win rate* Evals not won Eval wins Molecular 70.6% win rate* Evals not won Eval wins
Slide 18: Focus Is on Growing U.S. Customer Base
Focus Is on Growing U.S. Customer Base Commercial Strategy U.S. – Three existing reps., cover ~5% of the hospitals in the U.S. – Add 3-5 additional reps over the next 12 months – Expand test menu Europe – Maintain network of four distributors – U.K., Spain, France, Germany, Switzerland, Scandinavia
Slide 19: Tests Marketed and in Development
Tests Marketed and in Development Marketed – C. diff (Clostridium difficile) – hospital acquired GI infection, 347,000 cases per year, market potential of between $110-$120 annually In development – Group B Strep – nearly all pregnant woman in the US are tested, 3.95 million live births in the US, m
Slide 20: Product Timeline Milestones
Product Timeline Milestones th Quarter 2014 – Initiate Staph ID/R clinical trial – Submit Group B Strep 510(k) to FDA st Quarter 2015 – Submit Staph ID/R 510(k) to FDA – Initiate MRSA/SA Nasal clinical trial – Initiate Stool Panel clinical trial nd Quarter 2015 – Group B Strep 510(k) clearance expec
Slide 21: Potential Annual Revenue per Customer
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 currently in development.
Slide 22: Financials Why/Why Not Switching to Molecular?
Financials Why/Why Not Switching to Molecular?*
Slide 23: Financial Highlights
Financial Highlights As of June 30, 2014 – Cash Balance - $413,000 • $4.5 million pro-forma including additional Series D Preferred sold in July 2014 – YTD Revenue - $752,000 • $761,000 for 12 months ended 12/31/13 – nd Quarter Revenue - $402,000 • 145% growth YOY Key Metrics – One diagnostic test o
Slide 24: Hitachi Chemical
Hitachi Chemical Independent publicly traded Company in Japan – Hitachi, Ltd owns 51.2% FY 2013 sales of ~US$5 billion Market capitalization of ~US$4 billion Traditional business in Functional Materials and Advanced Components and Systems Stated intention is to invest in diagnostics as a future grow
Slide 25: Investment Highlights
Investment Highlights 1. Large, existing market—undergoing paradigm shift to modern technology 2. We have the low-cost and ease of use customers are waiting for 3. 77% win-rate* and sales traction validated in three sales territories 4. Recurring revenue model brings strong, sticky revenues. 5. Sign
Slide 26: Initial Public Offering Summary
Initial Public Offering Summary Issuer Great Basin Scientific, Inc. Exchange / Ticker NASDAQ / GBSN Securities Offering 2,500,000 units with each unit consisting of one share of common stock with one Series A warrant to purchase (i) one additional share of common stock, and (ii) one Series B warrant
Slide 27: The Power of Information
The Power of Information Powerful Molecular Diagnostics Platform September 2014
Great Basin Scientific — IPO Roadshow (September 2014) on 6ix