Eurofins Scientific SE · EURONEXT:ERF
Eurofins Scientific — Investor Day (November 2015)
111 slides from Eurofins Scientific's investor day presentation, Nov 5, 2015
Slide 1: Eurofins Investor Day
Eurofins A global leader in bioanalytical testing in the food, environment and pharmaceutical sectors Consistently delivering strong, sustainable, profitable growth Doubled revenues 3 times (every 3 years on average) since 2004 Sales & EBITDA Multiplied by over 10 times since 2004 Dr. Gilles Martin
Slide 2: Disclaimer
Disclaimer The statements made during this presentation or as response to questions during the Question & Answers period that are not historical facts are forward looking statements. Furthermore, estimates and judgements may be made based on market and competitive information available at a certain
Slide 3: Contents
Contents Introduction Eurofins Businesses Group Track Record Finance & Outlook North America Title: Eurofins LLI Investor Day 2014 EDR: 1-C-IR-PRE-01187643 Document owner: Sylvain Besson 3
Slide 4: Eurofins' Mission is to contribute to global Health, Safety & Environment
Eurofins’ Mission is to contribute to global Health, Safety & Environment with the best in bioanalysis Eurofins provides testing Founded in 1987 services in three main areas IPO in 1997 in Paris at EUR 1.83 per share that have a strong impact on human health: Network of 200 laboratories in 38
Slide 5: Drivers for long-term market growth
Drivers for long-term market growth Secular Underlying Fundamentals General Market Drivers Laboratory Market Drivers Consumer Demand for safe Increasing wealth expectations for pharmaceuticals, quality food and quality of Life protection and clean environment Consolidation of the fragmented laborato
Slide 6: Contents
Contents Introduction Eurofins Businesses Group Track Record Finance & Outlook North America Title: Eurofins LLI Investor Day 2014 EDR: 1-C-IR-PRE-01187643 Document owner: Sylvain Besson 6
Slide 7: Leading global and local market positions
Leading global and local market positions N°1* N°1 to N°3* N°1* worldwide worldwide worldwide Start 1987 Start 2000-2005 Start 2000 Food & Feed Testing for Environment Testing Pharma/Biotech Testing *Total Market size ~ EUR 2.0bn ~ EUR 5bn ~ EUR 4bn estimate N° 1 in Europe N° 1 Worldwide in Pharma N
Slide 8: Food & Feed testing offering is the most comprehensive
Eurofins’ Food & Feed testing offering is the most comprehensive in the market Agricultural production, product Production Retail & Distribution development Microbiology Sensorial Dioxins Veterinary drug Vitamins Quality Control residues Authenticity Pesticides Organic residues POPs Labelling GMO My
Slide 9: Eurofins serves all the main environmental testing markets
Eurofins serves all the main environmental testing markets Eurofins is the No.1 environmental testing service provider in the world* Lancaster Environmental Consulting and Testing is the laboratory sampling companies of choice for Fortune 500 are natural partners companies in the USA WATER AIR SOIL
Slide 10: Eurofins Pharma Services
Eurofins Pharma Services Spanning the entire drug development cycle Genomics Discovery Pre-clinical / Clinical Pharma Specialty Pharmacology Early (Central Products Clinical Development Laboratory) Testing / Diagnostics cGMP QC Sequencing High-throughput- Pharmacology Biomarkers Impurities Analysis
Slide 11: Eurofins Specialized Clinical Diagnostic Evolution
Eurofins Specialized Clinical Diagnostic Evolution “Genomics is one of the key technologies enabling personalized medicine…” Establishing platform to deploy genomics expertise for development of innovative clinical diagnostic tests to serve global healthcare commnunity One of the world’s leaders in
Slide 12: Eurofins Specialized Clinical Diagnostic Footprint
Eurofins Specialized Clinical Diagnostic Footprint Establishing leadership in targeted higher-growth niche areas of the clinical testing market Title: Eurofins Corporate Presentation October 2015 Document name: October 2015.ppt EDR: 1-C-IR-PRE-01274938 Document owner: Pamela Antay 12
Slide 13: Contents
Contents Introduction Eurofins Businesses Group Track Record Finance & Outlook North America Title: Eurofins LLI Investor Day 2014 EDR: 1-C-IR-PRE-01187643 Document owner: Sylvain Besson 13
Slide 14: Eurofins is set to reinforce its global market leadership
Eurofins is set to reinforce its global market leadership Eurofins Growth Cycles 4,000 20.9% 22% 1 2 20.5% (2000-2004) (2006-2010) 19.8% Entry in 11 new markets 17 start-ups 19.4% 20% From 7 to 18 coutnries Entry into 12 new/emerging markets 3,500 Acquisitions to strengthen position Acquisition of l
Slide 15: On track towards early achievement of objectives
On track towards early achievement of objectives Eurofins 5 year Report Card: 2009-2014 CAGR YTD 2015: Strong growth & operating momentum Achievements in 2014 33% revenue growth in NM 2015 to EUR 1.35bn Ca. 6% organic growth versus 5% 6.5% organic growth in NM 2015 (8% in Q3) objective 19% i
Slide 16: Outsourcing adds to market growth
Outsourcing adds to market growth Examples of laboratories outsourced to Eurofins Company Outsourced Activity Country Danish Hydrology Inst. Official water reference lab Scandinavia Suez/Sita Envirolab The Netherlands Danish farmers association Steins’ water/environment laboratory Denmark Southern W
Slide 17: Selective acquisitions to secure market leadership
Selective acquisitions to secure market leadership or expand into high-growth niche markets to leverage our existing competencies Selected transactions Rationale/impact Lancaster Laboratories (US, Europe, 2011) Global market leadership in pharma products testing IPL (France, 2011) Leading positi
Slide 18: Contents
Contents Introduction Eurofins Businesses Group Track Record Finance & Outlook North America Title: Eurofins LLI Investor Day 2014 EDR: 1-C-IR-PRE-01187643 Document owner: Sylvain Besson 18
Slide 19: Laboratory Network Investments (1/2): 2014-2017
Laboratory Network Investments (1/2): 2014-2017 35 Greenfield projects in high-growth markets Country Market Operational achievements Hong Kong Food India Food, Agro Group: First wave of start-ups (17) became Asia Australia Env profitable as a whole in 2013 New Zealand Food, Agro Singapore Food Laun
Slide 20: Laboratory Network Investments (2/2): Expansion / Modernization
Laboratory Network Investments (2/2): Expansion / Modernization of Laboratory Sites 100 new/expanded modern state-of-the-art sites to enable consolidation / closure of smaller or old sites Total of ca. 300,000 m2 added or brought to most modern standards between 2005 – 2014 (60,000 m2 in 2014 al
Slide 21: Positive trends drive solid operating results
Positive trends drive solid operating results H1 2015 H1 2014 Adjusted Separately Statutory Adjusted Separately Statutory +/- % Results disclosed Results Results disclosed Results Adjusted EURm Results items items Revenues 841.9 841.9 643.5 643.5 30.8% EBITDA 142.2 -10.1 132.1 109.0 -18.0 91.0 30.5%
Slide 22: Growth and Profitability are critical objectives
Growth and Profitability are critical objectives Group Profitability Objectives++ 3-tiered margin support towards mid-term 4,500 profitability objective 4,000 20% 1. Start of profit contribution from start-ups Group Adjusted EBITDA margin (%) 3,500 Group Revenues (EURm) 2. Exceptional costs and lo
Slide 23: High Degree of Financial Flexibility
High Degree of Financial Flexibility Strong Balance Sheet Leverage ratio well below covenant limit despite EUR Net Debt/ Adjusted EBITDA: max 3.5x 260m cash invested in the business in H1 2015 Largely capex and acquisitions which did not fully contribute yet Acquisition payments in H2 2015 wil
Slide 24: Outlook: becoming the world leader in bioanalytical testing
Outlook: becoming the world leader in the bioanalytical testing market Sustainable Market Growth Drivers + Key Success Factors = Solid Outlook 2015 Food safety & contamination Unique technological portfolio of EUR 1.9bn of revenues* issues over 130,000 methods Pro-forma: EUR 2.2bn revenues and c
Slide 25: Conclusion: our sustainable competitive advantage
Conclusion: our sustainable competitive advantage Best in class technology and quality give best brand High-growth, non-cyclical markets driven by secular protection mega-trends No. 1 or 2 worldwide in most business lines Advancing globalisation but with very few global Strong international presence
Slide 26: Contents
Contents Introduction Eurofins Businesses Group Track Record Finance & Outlook North America Title: Eurofins LLI Investor Day 2014 EDR: 1-C-IR-PRE-01187643 Document owner: Sylvain Besson 26
Slide 27: International network of standardised laboratories
An international network of world class, standardised laboratories is attractive for our customers H1 2015 revenue split : N. America 34.1% Others 14.9% France 14.1% Germany 13.8% Nordic Region 9.2% Benelux 8.3% Entry into high-growth UK & Ireland 5.5% markets with start ups & acquisitions 80% of th
Slide 28: North America as a major growth region for Eurofins
North America as a major growth region for Eurofins Eurofins Geographic Revenue Breakdown June 2014 Eurofins Geographic Revenue Eurofins Breakdown US through June 2014 the years 2,000 40% 1,800 35% 1,600 Benelux 30% EM & APAC UK 6% US as % of total Group revenues 8% 1,400 Nordics 15% France 14% 25%
Slide 29: Eurofins North America
Eurofins North America Food Testing Environment Testing Pharmaceuticals Testing Title: Eurofins LLI Investor Day 2014 EDR: 1-C-IR-PRE-01187643 Document owner: Sylvain Besson 29
Slide 30: Eurofins Food Testing US
Eurofins Food Testing US Farm to Fork Seed to Supermarket Eurofins provides testing services at every stage along the generic food chain Helping our customers to minimize risks and maximize value Title: Eurofins LLI Investor Day 2014 EDR: 1-C-IR-PRE-01187643 Document owner: Sylvain Besson 30
Slide 31: Driving Growth: Growth in Samples Processed
Driving Growth Growth in Samples Processed 750,000 700,000 650,000 600,000 550,000 500,000 Number of Samples 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 2008 2009 2010 2011 2012 2013 2014 2015* 5 Labs 5 Labs 7 Labs 7 Labs 10 Labs 10 Labs 13 Labs 15 Labs 243 FTEs 267 FTEs 2
Slide 32: Eurofins North America
Eurofins North America Food Testing Environment Testing Pharmaceuticals Title: Eurofins LLI Investor Day 2014 EDR: 1-C-IR-PRE-01187643 Document owner: Sylvain Besson 32
Slide 33: Eurofins Differentiates Through Its Competence Centers Strategy
Eurofins Differentiates Through Its Competence Centers Strategy… Eurofins Eurofins Eurofins Eaton Eurofins Air Toxics Eurofins Frontier Lancaster Calscience Largest full-service The 2 largest water Largest Air Testing Leading testing lab Largest full-service Testing lab in US testing labs
Slide 34: Eurofins Environment Testing US
Eurofins Environment Testing US Top 10 Environment testing service providers in the US (2014) 250 200 Organic growth and acquisitions move 150 Eurofins from 3rd to 2nd position Revenues US$m 100 50 0 Test America Eurofins US Pace Analytical ALS Labs Accutest EMSL Microbac Labs SGS Environmental Alph
Slide 35: Eurofins North America
Eurofins North America Food Testing Environment Testing Pharmaceuticals Testing Title: Eurofins LLI Investor Day 2014 EDR: 1-C-IR-PRE-01187643 Document owner: Sylvain Besson 35
Slide 36: Eurofins BioPharma Services
Eurofins BioPharma Services Global Leader in Contract Testing Services to the Biopharmaceutical Industry Timothy Oostdyk, Ph.D. Eurofins BioPharma Product Testing Eurofins Lancaster Eurofins Investor Day 05 November 2015 36
Slide 37: Eurofins BioPharma Services
Eurofins BioPharma Services Spanning the entire drug development cycle Genomics Discovery Pre-clinical / Clinical Pharma Specialty Pharmacology Early (Central Products Clinical Development Laboratory) Testing / Diagnostics cGMP QC Sequencing High-throughput- Pharmacology Biomarkers Impurities Analys
Slide 38: Our Customers
Our Customers Top 10 Pharmaceutical Companies Top 10 Biologics Companies Mid sized Pharmaceutical and Biologics Companies Small and Virtual Companies Contract Manufacturing Organizations (CMOs) 38
Slide 39: Global Bio/Pharma R&D Spend is Rising
Global Bio/Pharma R&D Spend is Rising 39
Slide 40: Improving R&D Productivity
Improving R&D Productivity Novel New Drug Approvals by the FDA hit a record level of 46 in 2014, up from 29 the previous year Industry has been delivering higher success rates with the number of Phase III failures falling markedly Companies are benefiting from a shift to specialized drugs, man
Slide 41: Global Biologics Market
Global Biologics Market The market for biologics is expected to continue to grow Source: BCC Research LLC 41
Slide 42: Biosimilars: A Huge Opportunity
Biosimilars: A Huge Opportunity Source: C&E News 42
Slide 43: So what are the trends relevant to our business?
So what are the trends relevant to our business? Large BioPharma R&D spending has remained relatively consistent and at high levels The large companies are doing less development themselves and making up the difference through partnerships and acquisitions – licensed products are more likely to
Slide 44: Outsourcing has become essential for drug discovery and development
Outsourcing has become an essential approach for drug discovery and development Outsourcing is expected to continue to grow at ~8% CAGR over the coming years Discovery Preclinical Development Drug Discovery Outsourcing Drug Development Outsourcing 20 40 Spend (USD, billion) Spend (USD, billion) 15 3
Slide 45: Eurofins BioPharma Provides Complete Outsourcing Services
Eurofins BioPharma Provides Complete Outsourcing Services Spanning the entire drug development cycle Genomics Discovery Pre-clinical / Clinical Pharma Specialty Pharmacology Early (Central Products Clinical Development Laboratory) Testing / Diagnostics cGMP QC Sequencing High-throughput- Pharmacolog
Slide 46: Comprehensive portfolio addresses all stages of discovery research
Our comprehensive portfolio addresses all stages of discovery research We are a partner to our Pharma clients, providing simple to complex, yet biologically relevant, tests to help them identify candidate drug molecules with the best properties for success to get through in the clinic P P P P P P Ta
Slide 47: Eurofins Global Central Laboratory
Eurofins Global Central Laboratory LANCASTER PA – WASHINGTON DC – BREDA – PARIS – BANGALORE – SINGAPORE – SHANGHAI Global coverage 47
Slide 48: The role of the Central Laboratory
The role of the Central Laboratory Setup and conduct assay testing schedules on subjects enrolled in Phase I - IV clinical trials Clinical testing of human specimens (e.g., blood, urine) in response to the IND CLINICAL V1 V2 Vn Supply PROTOCOL Data CONTAINERS REQ FORM Assay 1 Assay 2 Database Tr
Slide 49: Market leading Bioanalytical Services to support drug development
Leading the industry with market leading Bioanalytical Services to support drug development Eurofins Bioanalytical Services was the first laboratory focused on safety and efficacy testing of biopharmaceuticals which has continued over more than ten years Specialists in immunogenicity, Industry-leadi
Slide 50: Largest GMP contract testing lab in the world
Largest GMP contract testing lab in the world Worldwide Operations 14 GMP Operations Worldwide Total Facility Space: > 55,000 m2 Total Employees: >2,700 Active Clients: >8,000 Eurofins Lancaster Laboratories 50
Slide 51: Eurofins BioPharma Product Testing – GMP services
Eurofins BioPharma Product Testing – GMP services Provider of comprehensive laboratory services in the pharmaceutical and biopharmaceutical sciences Complete CMC Testing Services All starting material, process intermediates, drug substance, drug product, and manufacturing support Broad Techn
Slide 52: Global Capabilities
Global Capabilities < eurofins Comprehensive Small Molecule Services Comprehensive Large Molecule Services «# Raw Materials # Sterile Products Testing # Comparator Product Testing (using Isolator technology) # Stability Studies # Product Release # Non-sterile products # Organism Identification # End
Slide 53: Biopharmaceutical Drug Development
Biopharmaceutical Drug Development 53
Slide 54: Eurofins – Key Strengths
Eurofins – Key Strengths 1. Global Testing Services Strong North American, EU and Asian presence 2. The most comprehensive range of laboratory services available Full service small molecule Full service biologics 3. Three-tiered service delivery model Fee for service, FTE, PSS 4. Industry le
Slide 55: Client Satisfaction
Client Satisfaction Eurofins has been recognized with eight strategic partner awards in the past several years for exceeding each client’s expectations. In each case, these clients utilize multiple services and service delivery models. 55
Slide 56: What's Next?
What’s Next? 1. Continue to drive market share – organic growth and acquisition 2. Drive further integration and harmonization of services and systems across the network Global IT projects actively underway Market leading global client interfaces 3. Coordinated and compelling Global Offering D
Slide 57: Specialty Clinical Diagnostics: Viracor-IBT Laboratories
Specialty Clinical Diagnostics Viracor-IBT Laboratories, Inc. Julie Kliegl Viracor-IBT Eurofins Investor Day 05 November 2015 www.eurofins.com 57
Slide 58: Our History
Our History ( IBT Laboratories Founded ) Expertise in allergy & immunology; leader in translational science L ~ ViraCor Laboratories Founded Set the industry TAT benchmark for infectious disease testing to aid post-transplant diagnostics L | 2000 | ~ (ViraCor & IBT merge to become Viracor-IBT Immuno
Slide 59: Viracor-IBT: Leading Specialized Diagnostics Platform
Viracor-IBT : Leading Specialized Diagnostics Platform With Unique Scale Viracor-IBT’s targeted markets create a complementary platform across multiple testing modalities: Shared Highly specialized technology and Strong service / Overlap in sales Business to testing requiring instrumentation quality
Slide 60: Viracor-IBT: Hospital Transplant Market
Viracor-IBT: Hospital Transplant Market Currently, more than 300 hospitals nationwide support transplant programs, typically across multiple organ / procedure types Transplant Centers (n=315) VIBT has relationships with 63% of dual transplant programs - #1 POSITION VIBT has tremendous opportunit
Slide 61: Viracor-IBT: Attractive Payor Mix
Viracor-IBT: Attractive Payor Mix Unlike the majority of the clinical lab sector, ViraCor’s institutional client base utilizes a direct billing model, generating predictable cash flow and negligible bad debt Third-Party Payor Model Direct Model (<1% of Revenue) (99% of Revenue) Test Ordered By: Test
Slide 62: Viracor-IBT's Value Proposition
Viracor-IBT’s Value Proposition Leading Turnaround Times Competition often 50%+ longer to deliver results Service & Quality Specialty Testing Live access to lab, billing, and Expertise scientific affairs; Across multiple quality and fields, testing accuracy of results Viracor-IBT platforms and in hi
Slide 63: Diatherix
Dennis Grimaud Diatherix Eurofins Investor Day 05 November 2015 www.eurofins.com 63
Slide 64: What is Diatherix and what does it do?
What is Diatherix and what does it do? CAP accredited and CLIA certified high complexity laboratory providing proprietary molecular multiplex infectious disease diagnostic services to hospitals, physicians and healthcare facilities Multiplex PCR amplification process (TEM-PCR™), providing highes
Slide 65: History of Diatherix
History of Diatherix Joint Two MRSA Commission TEM-PCR patent Programs Improve Collaboration became effective Patient Outcome & Technology UAE Reduces Cost Studies begin Innovation Partnership ABX at Kettering & Award Crossroads Huntsville Kettering MRSA SARS first Hospital study completed with Kett
Slide 66: Vision
Vision Focused on Innovative Technology for Superior Evidenced Based Patient Care to Link Diagnostics to Therapeutics Provide More Drive Use Through Accurate, More Primary Care Calling Affordable Testing Efforts with Faster Results Broader Testing Eliminate Range to Provide Unnecessary Costs in Grea
Slide 67: TEM-PCR: Bringing Innovation to Healthcare
TEM-PCR: Bringing Innovation to Healthcare Timely One day results as determined by Innovative sample receipt Simultaneous Thorough identification of Detection of bacteria bacteria, viruses, in the presence of parasites and antibiotics Candida Benefits of TEM-PCR Meaningful Accurate Drives laboratory
Slide 68: TEM-PCR: Value to Hospitals
TEM-PCR: Value to Hospitals Revenue Impact Cost Avoidance • DRG reimbursement • Reduce infection rates • Inpatient, Outpatient and • Reduce isolation days Non-patient testing • Improve bed control Financial Outcomes Cost Reduction Loss Avoidance • Reduce length of stay • Readmission penalty • Reduce
Slide 69: Growth Strategy
Growth Strategy Expansion of Sales, Marketing and Patient Outcome Studies Launch Complex Wound Panel to Assist in reducing Amputations Strategic Focus on Developing Robust Hospital Alliances Growth and Profitability Submit Testing Panels to the FDA for Approval as a Service Launch MDRO Panel to Hosp
Slide 70: Growth Opportunities
Growth Opportunities Other Potential Applications in Other Healthcare Applications (Non-Healthcare) Industries Clinical Trials Food Safety Cancer Diagnostics Genetic Drug Resistance (MDRO) Veterinary / Animal Pharma Alliances Companion Diagnostics Biodefense / Military Licensing IP 70
Slide 71: Breadth of Diagnostic Disease Testing
Breadth of Diagnostic Disease Testing Panels Number of Pathogens Patient Illness • Identifies up to 19 • Conjunctivitis • Otitis Media • Orbital Cellulitis Ear Nose & Throat pathogens • Keratitis • Dacryocystitis • Sinusitis • Otitis Externa • Endophthalmitis • Bronchitis • Gastroenteritis • Travele
Slide 72: TEM-PCR Comprehensive Portfolio
TEM-PCR Comprehensive Portfolio Viral Respiratory Influenza Pharyngitis Atypical Pneumonia Ear, Nose & Throat Staph Differentiation Infectious Disease Pediatric Respiratory Bacterial Vaginosis Sepsis C. diff Toxin B STD HPV Group B Strep Women’s Health Gastrointestinal Respiratory Infection Where is
Slide 73: Recognition of the Technology
Recognition of the Technology 2009 2010 Effectiveness of TEM-PCR Top 10 Innovations in in H1N1 Testing * 2009 Podiatric Care Rapid Molecular Testing in 2008 2010 Multiplex PCR for Bacterial Bloodstream Infections * New Method for Detecting Respiratory Detection * MRSA in Trauma Patients * 2010 2014
Slide 74: Diatherix distinctions
Diatherix is an innovative, CLIA certified, molecular diagnostic laboratory utilizing proprietary TEM-PCR™ (Target Enriched Multiplex Polymerase Chain Reaction) technology for precise detection of infectious diseases – linking diagnostics to therapeutics. Diatherix distinctions: Simultaneous identif
Slide 75: EGL Genetic Diagnostics
Madhuri Hegde EGL Genetic Diagnostics Eurofins Investor Day 05 November 2015
Slide 76: EGL at a Glance
EGL at a Glance Established heritage and world-class expertise in genetic testing Founded in 1970 as part of Emory University’s School of Medicine Incorporated into the Department of Human Genetics in 2002 Acquired by Eurofins – September 1, 2015 Comprehensive provider of high-complexity m
Slide 77: Overview of EGL's Testing Service
Overview of EGL’s Testing Service EGL currently offers 1,190 tests (covering >1,500 genes) for the diagnosis of 14 categories of rare and common genetic diseases/disorders, carrier screening, prenatal testing and newborn screening EGL provides a full range of testing modalities: Molecular Test
Slide 78: EGL's Profile
EGL’s Profile “One-stop shop” – comprehensive genetic testing and interpretation Recognized leader in cutting-edge genetic testing and research & development 80%+ of EGL’s tests have been first-to-market Strong reputation with customers for quality and timeliness of reporting History of pr
Slide 79: Dynamics of the Rare Disease Testing Market
Dynamics of the Rare Disease Testing Market Large testing menu is key to maintaining competitive positioning and a requisite for building a sustainable business Testing volumes for many single disorders are relatively small given incidence rates Unlike other areas of lab testing, test turn-aro
Slide 80: New Test Launch History
New Test Launch History New Tests Launched, FY 2011 – YTD FY 2015 168 Leader in technology translation 145 Rapid high quality test development 122 A voluntary slowdown in new test launches in H2 2013 into Q1 2014 95 New test launches initiated in Q2 2014, in order to maintain EGL’s leadershi
Slide 81: Diseases/Disorders Covered by EGL's Tests
Diseases/Disorders Covered by EGL’s Tests Prenatal Testing Eye Disorders Pan Ethnic Carrier Screening Glycogen Storage Disorders Newborn Screening Disorders Hearing Loss Autism Spectrum Disorders Hereditary and Somatic Cancer Cardiomyopathies Intellectual Disability/Development D
Slide 82: Durable Differentiation
Durable Differentiation Long history of leadership in genetic testing Well-established reputation in the market with customers, top-tier collaborators and industry leaders Demonstrated track record of innovation and robust engine for new test development First mover advantage Ability to ra
Slide 83: f-Se8 EMORY GENETICS
3,8, f-Se8 EMORY GENETICS LABORATORY e EMORY GENETICS @ Eons &* eurofins CINE
Slide 84: Boston Heart Diagnostics
Susan Hertzberg BHD Eurofins Investor Day 05 November 2015
Slide 85: Population Medicine Has Been a Spectacular Failure
Population Medicine Has Been a Spectacular Failure Heart Disease Death Rate Per 100,000 2008-2010 1. Map created using Interactive Atlas of Heart Disease and Stroke, a website developed by the Centers for Disease Control and Prevention, Division for Heart Disease and Stroke Prevention. http://www.cd
Slide 86: The Facts Speak For Themselves: CVD Today
The Facts Speak For Themselves CVD Today 1. Writing Group. Heart Disease and Stoke Statistics 2012. Update: A report from the American Heart Association. Circulation 2012;125:220. 2. Sachdeva A, Cannon CP, Deedwania PC, et al: for the Get With The Guidelines Steering Committee and Hospitals. Lipid l
Slide 87: Health Plan Data Confirms CVD Cost Curve is Too Far to the Right
Health Plan Data Confirms CVD Cost Curve is Too Far to the Right Annual Cost Per Patient $60,000 $50,000 $50,000 $40,000 $30,000 $20,000 $10,000 $8,000 $1,500 $- Sub-Chronic Care Chronic Care Event & Post Event Care Composite national health plan data 87
Slide 88: Boston Heart's Integrated Approach to CVD
Boston Heart’s Integrated Approach to CVD Diagnostics Inform Personalized Treatment Decisions Patient Reports A comprehensive yet and Nutrition Plans focused panel of diagnostics Patient friendly lab reports drive health literacy Identify and stratify at-risk IDENTIFY INDIVIDUALIZE Scientifically-de
Slide 89: Individualized Patient Management Drives Treatment, Engagement & Outcomes
Individualized Patient Management Drives Treatment, Engagement & Outcomes PERSONALIZED RESULTS NEXT GENERATION DIAGNOSTICS INTERACTIVE PORTAL SUPPORT PREFERENCES TAILOR-MADE STRATEGIES 89
Slide 90: Proprietary Tests Are Choice Drivers
Proprietary Tests Are Choice Drivers Clinical Utility Changes PT Management Lipid Inflammation Metabolic Genetic • Boston Heart • hs-CRP • Boston Heart • Boston Heart Statin Cholesterol • LpPLA₂ Prediabetes Induced Myopathy Balance® • MPO Assessment® (SLCO1B1) • Lp(a), sdLDL • Boston Heart Fatty Gen
Slide 91: Our Industry Leading Patient Reports
Our Industry Leading Patient Reports Improve Health Literacy & Engagement 91
Slide 92: Treatment Centerfold Describes Options
Treatment Centerfold Describes Options for HOW to Improve Areas of Concern 92
Slide 93: Nutrition Algorithm is Evidenced Based
Nutrition Algorithm is Evidenced Based 100+ Attributes Medical Family Lab Results History History Patient Food Lifestyle Demographics Preferences Choices 93
Slide 94: Personalized Eating Strategy for Heart Health
Yielding a Personalized Eating Strategy that Can improve Heart Health not Just Weight Loss 94
Slide 95: Registered Dietitians Add Accountability
Registered Dietitians Add Accountability Improving Compliance and Success Rates Lilia Gonzalez MS, RD Boston Heart Coach Average Number of Pounds Lost Within 6 Months 14 12 10 8 6 4 2 0 No Coaching Phone In Person Coaching Coaching 95
Slide 96: Feedback Loops Reinforce Provider Treatment Plans
Feedback Loops Reinforce Provider Treatment Plans Feedback Feedback Feedback to Provider to Patient to Coach 96
Slide 97: An Integrated and Unique Approach to Improving Outcomes
An Integrated and Unique Approach to Improving Outcomes in Chronic Disease PERSONALIZED RESULTS NEXT GENERATION DIAGNOSTICS INTERACTIVE PORTAL SUPPORT PREFERENCES TAILOR-MADE STRATEGIES 97
Slide 98: Boston Heart's Services Lead to Superior Results
Boston Heart’s Services Lead to Superior Results and Long-Term Patient Adherence Data for patients since 2013 with a baseline LDL-C > 130 mg/dL Error bars: ± 1 SE 98
Slide 99: Lifestyle Support Leads to Superior Results
Lifestyle Support Leads to Superior Results and Long-Term Patient Adherence *Test improvement data based off of 1:1 match of 2,662 Boston Heart patients with same healthcare provider, gender and baseline LDL-C. 99
Slide 100: YTD Volume and EBITDA Strong Growth
YTD Volume and EBITDA Strong Growth and Leveraged Fixed Costs Per Day Volume +40% September YTD EBITDA DOUBLE 2014 $ and % 2014 2015 Jan Feb Mar Apr May Jun Jul Aug Sept Oct (Est) EBITDA ($k) EBITDA% 100
Slide 101: YoY Results
YoY Results Employees Capacity Volume per Day 400 4,000 1,500 3,000 1,000 360 2,000 500 1,000 320 - 0 2014 2015 Est 2014 2015 Est 2014 2015 Est Revenue ($M) Gross Margin Profit ($M) 70% 60% 50% 40% 30% 20% 10% 0% 2014 2015 Est 2014 2015 Est 2014 2015 Est 101
Slide 102: Looking Forward
Looking Forward bostonheart iagnostics®
Slide 103: Channel Expansion: Hospital Market
Channel Expansion Hospital Market Monthly Volume 3,000 2,500 2,000 1,500 1,000 500 - Apr May Jun Jul Aug Sept 103
Slide 104: A PCSK9 World
A PCSK9 World List Price: $14,400/patient/year • 8-10M people could be eligible = $XX Billions new spend - Express Scripts coverage – 1st year spend estimate is $750M • Medical experts believe most patients could be managed effectively with existing medications and lifestyle modification • Boston He
Slide 105: Value Based Approach
Suspect FH (by checklist) Secondary Prevention Is it Stay with working? Plan Yes Follow Boston up Heart Adjust therapy Testing Testing Add BH Lifestyle No PCSK9 sequencing Which statin type? Lipid Tests Absorption agent required? Inflammation Tests Fish oil or other supplement? Metabolic Tests Metfo
Slide 106: Appendix
APPENDIX 108 bostonheart diagnostics®
Slide 107: Boston Heart Cholesterol Balance Test
Boston Heart Cholesterol Balance® Test • Measures key markers for Cholesterol absorption and production to better target therapy • Production markers can be treated with a statin, which inhibits cholesterol production • Absorption markers can be treated with ezetimibe or the combination of a statin
Slide 108: Boston Heart HDL Map Test
Boston Heart HDL Map® Test Assesses HDL particle maturation, enabling providers to prescribe appropriate HDL raising therapy. ApoA-I containing HDL particle size and mobility distribution identifies underlying dyslipidemia. Every 1 mg/dL increase in mature, very large α-1 particles is associated wit
Slide 109: Boston Heart Statin Induced Myopathy Genotype Test
Boston Heart Statin Induced Myopathy (SLCO1B1) Genotype Test • Identifies patients at genetic risk for reduced uptake of statins resulting in muscle aches and pains, the number one side effect of statins • 60% of patients who stopped taking a statin cited muscle pain as the primary reason. • The SLC
Slide 110: Boston Heart Prediabetes Assessment
Boston Heart Prediabetes Assessment® 80% of Diabetics Die from Heart Disease Identifies patients at risk of conversion of prediabetes to diabetes within 10 years with a predictive accuracy Better than any other testing option in the market. 92% predictive accuracy Predictive Accuracy 0.92 using the
Slide 111: Boston Heart Fatty Acid Balance Test
Boston Heart Fatty Acid Balance™ Test Measures selected key fatty acids for the purposes of cardiovascular disease characterization and management. Having the right balance of fatty acids can improve cholesterol balance, improve immune system function, reduce inflammation, and reduce rates of heart