The Power of Information
December 2014Ryan Ashton – Co-founder and CEO
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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.
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Focus on Small – Medium Hospitals
Great Basin - Executing for growth
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
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The Target Market: Hospital Labs
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
Industry undergoing a paradigm shift to molecular
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Specific Example: Blood Sepsis
MDx Testing: Improves Outcomes & Lower Costs
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
Outcomes:
MDx allows for rapid diagnosis and treatment
Reduces incidence and spread of disease
Costs:
Length-of-stay reduced by 6.2 days
Saves an average of ~$7,000 per incidence
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Found $$$ for an StR MDx solution
Great Basin’s Market Opportunity
Hospitals over 400 beds
(~600)
This market is underserved!
Of 4,900 <400 bed hospitals, 84% still await a good MDx solution
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Customers want three things in MDx:
The Unmet Need
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.
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Designed with the Customer in Mind
Our MDx platform -
Executes the test
Provides electronic output to the clinician
Off-the-shelf components keeps cost low
Single-Use
Up to 64 answers per specimen
Same cartridge for all new tests
Designed for low-cost and manufacturability
Analyzer
Cartridges
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Highly Sensitive End-Point Detection – Creates industry-leading menu versatility and cost
Standard Detection
HRP
HRP
HRP
amPED Detection
Inexpensive and highly scalable ($0.10 per chip today) Up to 64 targets per chip Sensitivity adequate for direct from specimen detection
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Leadership in the “Three Cs”
Great Basin Offers Winning Solution
Cost:Low-Cost
✓ ✓
Content: Low-plex
Multiplex
✓
✓
✓
✓
✓
✓
Convenience:Sample to Result
✓ ✓ ✓ ✓
(1)
(1) Still in development
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Customer Experience: Workflow is Faster and Easier
How We Win: Easy to Use “Sample to Result”
Results Results Results
Reader
2Walk-Away
Points
Results
6-10 Hands on Steps 18-25
Hands on Steps
16-23 Hands on Steps
Instrument Instrument
Instrument
Instrument
Results
Instrument
3-5 Hands on Steps3-5 Hands on Steps
2Walk-Away
Points
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Labs need both Low-plex and Multi-plex: Only GBSN delivers both
Broadest Potential Menu in the Industry
Multi-Plex MarketMore Answers/Higher Cost• Gram Positive Blood Sepsis
• Gram Negative Blood Sepsis
• Respiratory
• Stool
• Vaginosis/Vaginitis
Low-Plex Market1-3 Answers, Lower Cost• MRSA
• C. diff
• CT/NG
• Meets all needs of the Lab• Provides pricing power• Allows for Trojan Horse placements to unseat competitors
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Generate Recurring Revenue Stream
The Affordable Model – “Vending Machine”
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
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Sales Funnel – Up 44%December 12th, 2014
Sep-14 Oct-14 Nov-14 Dec-14 40
60
80
100
120
83 81 80 80
39
25
145
85
94
106
122
Evals*U.S. RRCs
*Evals include both Active and Scheduled Evaluations
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Great Basin Product Pipeline
New Tests Make our MDx Platform More Attractive
AvailableNow
AvailableJan-June 2015
AvailableJuly-Dec 2015
AvailableJan-June 2016
C. diff
Group B Strep
Staph ID/R
STEC
MRSA/SAPre-Screen
Food-borne Pathogens
Candida
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Potential Annual Revenue per Customer*
New Products’ Revenue Potential
*Based on assumption that customers reach projected usage levels of all five tests, including four tests pending at the FDA or currently in development.
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Q4 2014 Q2 2015 Q4 2015 Q4 2016
SA Pre-Surgical/MRSA Nasal Screen
Food Borne
Staph ID/R
Group B Strep
C. Diff
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Intend to Develop Rich Menu of Low-plex and Multi-plex Tests
Great Basin 4-Year Roadmap
2014 2015 2016 2017 2018
1
4
8
11
14
26
12
20
Multi-plex Low-Plex
1
6
14
23
34
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Commercially-Focused Management Team
Ryan AshtonChief Executive Officer
Robert JenisonCTO, SVP - Research
Jeffrey RonaChief Financial Officer
Laurence ReaChief Engineer
Sandra NielsenVP - Sales and Marketing
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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
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Why GBSN will win
Summary - Primed for growth
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
The Power of Information
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