Great Basin Scientific — IPO Roadshow (September 2014)
27 slides from Great Basin Scientific's IPO roadshow presentation, Sep 29, 2014
Slide 1: The Power of Information
The Power of Information Powerful Molecular Diagnostics Platform September 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 1,650,000 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: The Target Market: Hospital Labs
The Target Market: Hospital Labs Industry undergoing a paradigm shift to molecular 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 estimates
Slide 7: Commercially-Focused Management Team
Commercially-Focused Management Team Name Position Past Experience 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: The Company
The Company Commercial Stage – Primed for Growth 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: The Technology
The Technology DNA Amplification and Array-based detection £ 90 Minutes to Answer + Accurate diagnosis = The correct treatment sooner
Slide 10: Proprietary Signal Amplification Technology (amPED) Permits Direct from Specimen Detection
Proprietary Signal Amplification Technology (amPED) Permits Direct from Specimen Detection Dextran Polymer Streptavidin Standard Detection amPED Detection Patent Protected (U.S. #8,574,833) TMB HRP (subsrate) Detector (biotin tagged) Target Target Detector (biotin tagged) TMB TMB TMB HR HR HR P P P1
Slide 11: The Unmet Need
The Unmet Need Customers want three things in MDx: 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: The MDx Platform
The MDx Platform Designed with the Customer in Mind Executes the test Provides electronic output to the clinician Off the shelf components keeps cost low Analyzer Up to 64 answers per specimen Same cartridge for all new products Designed for low-cost and manufacturability Cartridges
Slide 13: Current Microbiology Lab Workflow
Current Microbiology Lab Workfow Slow. Labor intensive. Culture Sub-Culture Can take days to Antibiotic Susceptibility obtain a result
Slide 14: Microbiology Lab Workflow with Great Basin
Microbiology Lab Workflow with Great Basin Sample-to-result = Simple workflow and fast, accurate results Simple, sample prep Load cartridge in analyzer Results in ~90 minutes!
Slide 15: The Need Met
The Need Met And What the Customer Wants… 1. “Sample to Result” format 2. Multiplexing capability with up to 64 answers per test 3. Rational customer cost model
Slide 16: The Model – "Vending Machine"
The Model – “Vending Machine” No cost razor – Powerful razor blades “You pay only for a result” Avoid long capital equipment sales cycle Follow-on products, a faster, easier sale Footprint, Footprint, Footprint
Slide 17: The Customer Response
The Customer Response Latest Twelve Month “Win Rate” (US Only) Non-molecular Molecular 85.2% win rate* 70.6% win rate* Evals not won Evals not won Eval wins Eval wins 77% aggregate win rate * Where accounts have made a decision
Slide 18: Commercial Strategy
Commercial Strategy Focus Is on Growing U.S. Customer Base U.S. – Three existing reps., cover ~5% of the hospitals in the U.S. – Add 1-3 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 4th Quarter 2014 – Complete Staph ID/R pre-clinical development – Submit Group B Strep 510(k) to FDA 1st Quarter 2015 – Complete Stool Panel pre-clinical development 2nd Quarter 2015 – Complete MRSA/SA Nasal pre-clinical development – Group B Strep 510(k) clearance expect
Slide 21: New Products' Revenue Potential
New Products’ Revenue Potential Potential Annual Revenue per Customer* Test Type Revenue Potential Gastro Intestinal C. diff $ 24,090 $24,090 Food Bourne $38,325 Blood Infections Staph ID and Resistance $13,140 MRSA SA Pre-Surgical/MRSA Nasal Screen $124,100 Sexual Health Group B Strep $17,338 TOTAL
Slide 22: Financials
Financials
Slide 23: Financial Highlights
Financial Highlights As of June 30, 2014 – Cash Balance - $431,000 $4.0 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 – 2nd Quarter Revenue - $402,000 145% growth YOY Key Metrics – One diagnostic test on the
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 1,650,000 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