JEFFERIES 2015 GLOBAL HEALTHCARE CONFERENCE JUNE 3, 2015 NACHUM HOMI SHAMIR PRESIDENT AND CHIEF EXECUTIVE OFFICER

Transcription

1 JEFFERIES 2015 GLOBAL HEALTHCARE CONFERENCE JUNE 3, 2015 NACHUM HOMI SHAMIR PRESIDENT AND CHIEF EXECUTIVE OFFICER

2 SAFE HARBOR STATEMENT Certain statements made during the course of this presentation may not be purely historical and consequently may be forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements made regarding: our partner model and the ability of our partners and installed base to drive future growth; the ability of our technology to enhance productivity and efficiency; our financial position and long-term revenue growth; our molecular diagnostic business model, the markets we are targeting, market segmentation, expected growth of such markets, and the ability of our products to address those markets; sales of our products, their technical capabilities, and the anticipated market size and acceptance, demand and regulatory environment and approvals therefor; our direct sales efforts; our system placements; our system and assay product pipeline and anticipated timelines for regulatory approvals and market releases, including for ARIES instrumentation and assays; market opportunity for ARIES and NxTAG RPP product; functionality and benefits of ARIES and NxTAG RPP and competitive position; reimbursement trends; development and growth of our PGx strategy, our ability to drive growth through investment in R&D and focus on operating leverage and managing operating costs; our long term financial targets; our key steps and strategies for growth; our strategic outlook and growth plan for our business for 2015 and beyond; operational trends, including those related to sales of systems, assays, consumables, and royalty revenues; competitive threats and products offered by other companies; 2014 revenue guidance; our business outlook, financial targets and projections about revenues, cash flow, system shipments, expenses and market conditions, and their anticipated impact on Luminex for 2015 and beyond; and, any statements of the plans, strategies and objectives of management for future operations. These forward looking statements speak only as of the date hereof and are based on our current beliefs and expectations and are subject to known or unknown risks and uncertainties some of which are beyond our control that could cause actual results or plans to differ materially and adversely from those anticipated in the forward looking statements. Factors that could cause or contribute to such differences are detailed in our annual, quarterly, or other filings with the Securities and Exchange Commission. We undertake no obligation to update these forward looking statements. Also, certain non-gaap financial measures as defined by SEC Regulation G, may be covered in this presentation. To the extent that any non-gaap financial measures are covered, a presentation of and reconciliation to the most directly comparable GAAP financial measures will be included in this presentation may be available on our website at in accordance with Regulation G. 2 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

3 OUR BUSINESS A Foundation Built on Multiplexing - From only one sample, detect and identify up to 500 biological agents - Improves time, cost, and productivity - Distributed by key industry players Growing Focus on Molecular Diagnostics - Expanding product portfolio with the launch of new, innovative products - Moving downstream into large, adjacent markets - Direct salesforce Partnership Channel LMNX Direct Sales Channel Shifting the Company Accelerating into the a Diagnostics Transformation Business into a Diagnostics Business 3 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

4 PARTNERSHIP CHANNEL FUNDING GROWTH IN MOLECULAR CHANNEL $(M) CAGR = 5% [1] Stable, Strong & Profitable Partnership Channel Revenue: ~$117M 50-1Q15 Royalty Revenue: ~$11M (+6% Y/Y) Systems Consumables Royalties - Growth Expectations: mid-single digits - Annualized end-user sales approaching $500M for 2015 $(M) CAGR = 28% [1] Molecular Diagnostics Drives Future Growth Revenue: ~$88M (+18% Y/Y) - 1Q15 Revenue: ~$25M (+17% Y/Y) Assays - Significant growth in PGx and infectious disease portfolio - On Track for ~$100M+ in Assays in 2015 [1] 4-year CAGR based on 2014 revenue over Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

5 POSITIONED FOR ACCELERATING GROWTH DIFFERENTIATED Technology Solution-based product innovation to Lab customers ATTRACTIVE Markets Leadership position in growing multibillion dollar markets with multiple revenue streams NEW PRODUCT Launches NxTAG RPP ARIES FINANCIAL Leverage Strong gross margins & profitability 5 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

6 THE ESTABLISHED LEADER IN MULTIPLEX TESTING 11,200+ Instruments placed 700+ Assays Developed Detect and identify up to 500 biological agents Save time Decrease cost Increase productivity 65 IVDs Clearances on Luminex Technology 325+ Issued Patents Worldwide More than 22,000 published scientific studies cite Luminex technology and/or partner products 6 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

7 NXTAG RPP TIMELINE PROGRESSING TOWARDS COMMERCIAL LAUNCH Started Clinical Trials FDA 510(k) Submission 1Q15 2Q15 Summer 15E 4Q15E RUO Launched Target Date for FDA Clearance 7 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

8 NXTAG RESPIRATORY PATHOGEN PANEL (RPP) SCALABLE SOLUTION FOR STREAMLINED RESPIRATORY TESTING Challenges for Labs Many pathogens present with similar symptoms Labs are busy and may be understaffed Require quick results, even during peak seasons Post-PCR contamination can cause false results Seasonal demand NxTAG Solution Single-well assay, 22 pathogens, comprehensive coverage Simplified workflow, minimal hands-on time Results on up to 96 samples in ~4 hours Closed-tube workflow reduces contamination risk Scalable throughput: from 1-96 samples at a time 8 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

9 ARIES TIMELINE ADVANCING TOWARDS COMMERCIAL LAUNCH Completed Development FDA 510(k) Submission/ RUO Launch Commercial Launch 5+ Assays Cleared 20 systems placed across 10 customer sites 2H14 1Q15 Summer 15E 4Q15E 2Q16E ~20 systems placed across 10 customer sites Started Clinical Trials HSV 1/2 Completed C. Diff Ongoing Target Date for FDA Clearance 9 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

10 ARIES : SOLUTION-BASED PRODUCT INNOVATION Challenges for Labs Contamination and Misdiagnosis Varying Testing Platforms Scarcity of Personnel (i.e. Lab Technicians) High Volume of Reports Limited Bench Space ARIES Solution Sample-to-Answer, Minimizes User Error Compelling Menu Strategy (i.e. Rapid Menu Expansion) True Walkaway Capability Streamlined Reporting Minimal Footprint 15 Bench Space 10 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

11 LUMINEX CURRENT MDx PORTFOLIO INFECTIOUS DISEASES GENETICS Portfolio Performance 2014: ~$88M (+18% Y/Y) 1Q15: ~$25M (+17% Y/Y) On Track for ~$100M+ in 2015 MARKETS Respiratory Gastrointestinal PRODUCTS xtag RVP xtag RVP Fast xtag GPP Women s Health MultiCode HSV 1/2 Source: Market Diagnostics International (MDxi), 2013 EMMES and internal estimates PRODUCTS Total Addressable Market = ~500M 11 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science MARKETS Pharmacogenetics (Personalized Medicine) Cystic Fibrosis PRODUCTS xtag CYP2D6 xtag CYP2C19 xtag CF

12 INCREMENTAL MARKET OPPORTUNITY EXPANDING DOWNSTREAM WITH ARIES Luminex 2015 and Beyond A R I E S xtag NxTAG Full MDx (500) Moderately Complex MDx (1000) Limited MDx (5,000) Current MDx TAM: ~$500M MDx TAM with ARIES: $1.5B+ Key Positioning Access to Attractive, Fast Growing Markets Segments Simple, Easy to Use Solutions Drive Adoption Offering Complete Testing Solution: - xtag / NxTAG RPP (High Multiplex) - ARIES (Real-time PCR) No MDx Capability (7,000) Source: Mdxi Market Diagnostics Int l, 2013 Emmes: 1,000 U.S. laboratory survey, Scientia Analysis, AHA Registered U.S. Hospitals, CMS CLIA 12 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

13 ARIES COMMERCIAL LAUNCH PROGRESS REGULATORY Initiated HSV and C. Diff Clinical Trials On track for FDA submission in Summer 15 SALESFORCE EXPANSION ~10 Additional Headcount Goal: Strategically position for maximum coverage Integrated salesforce CUSTOMER ENGAGEMENT Early Access Program Clinical Whitepapers Time in Motion studies Engaging with KOL s SCALE UP OPERATIONS Invested in semiautomation equipment R&D resource allocation 13 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

14 ARIES VISION FOR THE FUTURE LEVERAGING OUR MULTIPLEXING HERITAGE Additional Plex Capabilities ARIES Menu Expansion Multiplexing & RT-PCR Building a Platform for Sustainable Growth 14 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

15 CONSISTENT TOP-LINE GROWTH Total Revenue ($M) Expectation above mid-point of range Guidance of $230M - $236M [2] E [1] 5-year CAGR based on mid-point of 2015 guidance range over 2010 [2] 2015 revenue guidance as of 1Q15 earnings call, May 4, Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

16 STRONG GROSS AND OPERATING MARGINS Gross Margin: 68% 68% 70% 67% 70% 70% Non-GAAP Operating Margin [1] 20% 16% 12% 8% 4% Highlights Industry Leading Gross Margins Significant Operating Leverage & Profitability - 1Q15 EPS: $0.18 Strong Free Cash Flow - No Debt - ~$111M in Cash and Investments at March 31, % Q15 YTD [1] Non-GAAP Operating margin for years exclude litigation fees, restructuring, severance, and settlement of distributor agreements 16 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

17 EXCITING FUTURE AHEAD Utilize brand recognition and reputation while expanding addressable market Offer a complete testing solution Focus on execution, organizational synergy and becoming market driven Leverage a strong balance sheet Growing emphasis on diagnostics 17 Copyright 2015 Luminex Corporation Breakthrough solutions to improve health and advance science

18 THANK YOU