Jefferies Healthcare Conference Frank Witney, President & CEO
Forward Looking Statement This presentation contains statements that are "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause our actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements other than statements of historical facts included in this presentation, including statements regarding our future financial position and results, are forward-looking statements. For further information regarding risks and uncertainties associated with our business, please refer to our SEC filings, including, but not limited to, the Risk Factors section of our SEC filings, including without limitation our annual report on Form 10-K and quarterly reports. Forward-looking statements are made as of June 3, 2015 and the Company assumes no obligation and expressly disclaims any duty to update this information. 2
Our Strategic Roadmap Realigned and expanded product portfolio for translational medicine and clinical diagnostics Return to growth Reduce cost structure Drive profitability & strengthen balance sheet Profitable and growing Expand translational medicine and clinical diagnostic franchises Strong balance sheet & strategic flexibility Phase I Phase II Phase III 2011 2012 2013 2014 2015 3
The Right Tool for the Job Reproductive Health Cyto and NIPT Genetic variants (SNP, CNV) Expression analysis (RNA, Protein, Pathway) Cancer Genomics Genotyping Biobanks Single-cell analysis Functional analysis Single Cell Biology Flow cytometry Molecular Pathology Integrated molecular and cellular view with clinical data 4
Development & Application Priorities Translational Medicine & Molecular Dx Genotyping Single Cell Biology Whole genome cytogenetics Reproductive Health Cancer RNA biomarkers Biobanks Ag Bio HLA Flow cytometry reagents Multiplex immunoassays Molecular pathology (RNA-ISH) Pharmacogenomics Microbiome Pharmacogenomics Wellness & DTC Single cell genomics Molecular pathology (RNA-ISH) 5
Growth Drivers in Genotyping Biobanks Large-scale genetic analysis Highly flexible, rapid and cost effective customization Photolithographic manufacturing reduces batchto-batch variation Fully automated highthroughput workflow enables large projects AgBio Rapid adoption of genetic tools for genomic selection / trait improvements New 384-format Axiom increases throughput and lowers cost Recurring revenues that are not subject to academic funding Represents ~ 25% of our genotyping revenues 6
Acquisition of Eureka Genomics Announced acquisition of Eureka Genomics for $15 million in cash Established in 2008 using flexible & cost-effective technology developed at the University of Houston Early stage business leveraging an innovative SNP assay with NGSbased detection that can support both service and product kits Compliments our genotyping portfolio with low-plex applications that can leverage the large installed base of NGS instrumentation Addresses the largely under-served market for low-plex agrigenomics Clear synergies with our global commercial channel and manufacturing 7
Broad Menu of AgBio Applications Enabled by Eureka Genomics Technology <100 SNPs Traceability & QC Eureka Assay Low 00s SNPs Parentage 500 SNPs Marker Assisted Management 8 2-5000 SNPs Imputationpowered Affordable Genomic Selection
LowPlex AgBio Market is a Significant Growth Opportunity with a CAGR of ~ 25% Low-Plex (100 s-few 1,000 s) AgBio SAM Med-high-Plex (few 1,000 s-few 100,000 s) AgBio SAM SAM 2014 SAM 2017 $50M $98M $110 M $210M Segment size, $ Millions * Sources: MacQuarie, 9 Cowen and BCC
Expands our Genetic Analysis Portfolio FY 2014 26% 6% 21% 7% 40% Expression Life Sci. Reagents ebioscience Genetic Analysis Corporate 10
Growth Drivers for Reproductive Health Post Natal Cytogenetics We now have more than 350 active accounts New Growth Opportunities Ariosa Diagnostics has migrated their industry-leading Harmony Prenatal test to an array-based approach from Affymetrix in January of 2015 The NIPT market is forecast to grow to approximately $4.8 billion by 2018* A recent study of 19K patients demonstrated that cell free DNA testing was superior to traditional first trimester screening for the detection of trisomy 21, regardless of age or risk status 11 * - reference JPM NGS Deep Dive report
Growth Drivers for Single Cell Biology 1. Expected to grow into a $1B Market by 2017 2. What s the unmet need? Bulk analysis of heterogeneous cells masks relevant events Cells with identical genomes can have different cellular traits Goal is to understand individual cells in context, not an average 3. Convergence of proteomic and genomic analysis applied at the single cell level is a funding mega-trend with strong translational and clinical market pull 12
A Portfolio of Tools for Single Cell Biology ISOLATION AMPLIFICATION (cdna library prep) OMIC ANALYSIS Flow cytometry GeneChip WT Pico Reagent Kit Microarray SINGLE CELL VALIDATION 13 QG View Tissue PrimeFlow RNA QG ViewCell RNA
Improved Growth, Profitability & Cash Metric Q1 2015 Q1 2014 Delta Total Revenue $88.7M $82.9M 6.9% *Adjusted EBITDA $17.1M $12.9M 33% *Non-GAAP Net income $7.9M $1.9M $6M *Non-GAAP EPS $0.10 $0.03 $0.07 Cash & Securities $104M $58M 79% Senior Debt $22M $36M 39% * See published reconciliations to GAAP results 14
Summary In Phase II of our strategic plan we returned company to growth, profitability and strengthened our balance sheet In Phase III we are focused on generating durable growth in our core markets of Reproductive Health Human and AgBio Genotyping Single Cell Biology In FY15 we expect to grow our total revenues in the midsingle digit range on a constant currency basis We will our use our strengthened balance sheet to execute on tuck in acquisitions to stimulate growth in our verticals 15
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