Transcript Slide 1

The Power of Information
December 2014
Ryan Ashton – Co-founder and CEO
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.
2
Great Basin - Executing for growth
Focus on Small – Medium Hospitals
 Who are we?
 FDA-cleared MDx system with 83 U.S. customers
 IPO October 2014 NASDAQ:GBSN
 Post- IPO Execution
•
•
•
•
39 new sites in evaluation or scheduled for evaluation
2nd Test submitted to FDA
Begun trial for 3rd Test
Expanded 2015 Trial schedule from 3 to 5 tests
 Only Company with all 3 Customer Needs
•
•
•
Sample-to-result
Low cost
Menu of low-plex and multiplex tests
3
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
4
MDx Testing: Improves Outcomes & Lower Costs
Specific Example: Blood Sepsis
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
Costs:
Outcomes:
 MDx allows for rapid diagnosis
and treatment
 Reduces incidence and spread of
 Length-of-stay reduced by 6.2 days
 Saves an average of ~$7,000 per
incidence
disease
5
Great Basin’s Market Opportunity
Of 4,900 <400 bed hospitals, 84% still await a good MDx solution
Found $$$ for an
StR MDx solution
Hospitals over
400 beds
(~600)
This market
is underserved!
6
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.
7
Our 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




Single-Use
Up to 64 answers per specimen
Same cartridge for all new tests
Designed for low-cost and manufacturability
Cartridges
8
Highly Sensitive End-Point Detection – Creates
industry-leading menu versatility and cost
Standard
Detection
amPED
Detection
 Inexpensive and highly scalable ($0.10 per chip today)
 Up to 64 targets per chip
 Sensitivity adequate for direct from specimen detection
9
Great Basin Offers Winning Solution
Leadership in the “Three Cs”
(1)
Cost:
Low-Cost
✓
Content:
Low-plex
✓
Multiplex
Convenience:
Sample to
Result
(1)
Still in development
✓
✓
✓
✓
✓
✓
10
✓
✓
✓
✓
How We Win: Easy to Use “Sample to Result”
Customer Experience: Workflow is Faster and Easier
3-5 Hands on Steps
Instrument
3-5 Hands on Steps
6-10
Hands on Steps
16-23
Hands on Steps
2
Walk-Away
Points
2
Walk-Away
Points
Instrument
Instrument
Results
Results
Instrument
Instrument
Reader
Results
18-25
Hands on Steps
Results
Results
11
Broadest Potential Menu in the Industry
Labs need both Low-plex and Multi-plex: Only GBSN delivers both
Low-Plex Market
Multi-Plex Market
1-3 Answers, Lower Cost
More Answers/Higher Cost
• MRSA
• Gram Positive Blood Sepsis
• C. diff
• Gram Negative Blood Sepsis
• CT/NG
• Respiratory
• Stool
• Vaginosis/Vaginitis
•
•
•
Meets all needs of the Lab
Provides pricing power
Allows for Trojan Horse placements to unseat competitors
12
The Affordable Model – “Vending Machine”
Generate Recurring Revenue Stream




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
13
Sales Funnel – Up 44%
December 12th, 2014
122
120
106
100
39
94
85
25
14
Evals*
80
5
60
80
80
81
83
Sep-14
Oct-14
Nov-14
Dec-14
U.S. RRCs
40
*Evals include both Active and Scheduled Evaluations
14
Great Basin Product Pipeline
New Tests Make our MDx Platform More Attractive
Available
Now
Available
Jan-June
2015
C. diff
Group B Strep
Staph ID/R
STEC
MRSA/SA
Pre-Screen
Food-borne
Pathogens
Candida
15
Available
July-Dec
2015
Available
Jan-June
2016
New Products’ Revenue Potential
Potential Annual Revenue per Customer*
$250,000
SA Pre-Surgical/MRSA
Nasal Screen
$200,000
Food Borne
$150,000
Staph ID/R
$100,000
Group B Strep
$50,000
C. Diff
$Q4 2014 Q2 2015 Q4 2015 Q4 2016
*Based on assumption that customers reach projected usage levels of all five tests, including four tests pending at the FDA
or currently in development.
16
Great Basin 4-Year Roadmap
Intend to Develop Rich Menu of Low-plex and Multi-plex Tests
34
23
14
6
1
14
11
8
20
12
4
1
2
2014
2015
6
2016
Multi-plex
17
2017
Low-Plex
2018
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
18
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
– 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
19
Summary - Primed for growth
Why GBSN will win
 Large under-penetrated market
 Technology designed for the 3 Keys to



Success
High demand for System
Rich Product Pipeline increases Potential
Revenue per Customer
Strong Management Team
20
The Power of Information
Thank You