Standard Biotools Inc. · NASDAQ:LAB
Standard Biotools — Investor Presentation (January 2025)
31 slides from Standard Biotools's investor presentation, Jan 13, 2025
Slide 1: Setting Standards, Empowering Research, Building Shareholder Value
Setting Standards Empowering Research Building Shareholder Value Investor Presentation January 2025
Slide 2: Legal Information: Forward-looking statements
Legal Information 2 Forward-looking statements This presentation contains forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. All statements other than sta
Slide 3: Our Approach
Standard BioTools 3 OUR APPROACH Operate as OWNERS, act like INVESTORS “Increase ROI, Diversify Risk & Generate Returns” Focus on EFFICENCY to grow PROFITS “Without Margin, there is no Mission” Offer SOLUTIONS that enable “We are a business not a technology or 'omics application”
Slide 4: Strategy: Attract, Consolidate, Operate
Strategy: Attract, Consolidate, Operate Amass Talent, Build a Diversified Solutions Leader, Deliver Operational Excellence Consolidate: High-Value Products & Solutions targeting High-Growth, High-Margin, End- Markets Talent recruited from all the leading Life Science Companies + ~200 yrs of experien
Slide 5: Leadership: Bring Operational Experience to Business of Science
Michael Egholm, PhD Chief Executive Officer Experience: • Danaher • Pall • Roche Alex Kim Chief Financial Officer Experience: • Danaher • Pall • Milliken Sean Mackay Chief Business Officer Experience: • IsoPlexis • PhenomeX • Lazard Agnieszka Gallagher SVP, Chief Legal Officer Experience: • Sandoz •
Slide 6: Tactics: Climb the Value Pyramid, Expand the Customer Pie
CONSUMABLES INSTRUMENTS SERVICES Tactics: Climb the Value PYRAMID, Expand the Customer PIE ACADEMIC $13B1 BIOPHARMA $27B1 CURRENT (Q3 YTD) PRODUCT MIX CONSUMABLES INSTRUMENTS SERVICES FUTURE PRODUCT MIX2 53%* Q3 YTD GROSS MARGINS 65% TARGET GROSS MARGINS CURRENT END MARKETS 1Management estimate 2Ant
Slide 7: Environment Needing a Partner Like Standard BioTools
Environment Needing a Partner Like Standard BioTools Emerging Life Science Tools & Biopharma Markets Difficulties Create Consolidation Opportunity $0 $10 $20 $30 $40 $50 $60 Jan '22 Jan '23 Jan '24 Jan '25 Avg. Share Price Valuation & Sales Decreases in LS Tools1 1Average share price of 13 emerging
Slide 8: M&A Pipeline: Disciplined Criteria and Filling Funnel
M&A Pipeline: Disciplined Criteria and Filling Funnel 8 Consumables Instrument Services DIVERSIFIES PRODUCT MIX & END MARKET • High margin recurring consumables • Diversified product mix • Growth in pharma and new end markets DE-RISKED TECHNOLOGY • Science fully understood • Deployable product PATH
Slide 9: Applying SBS to Drive Improvement
• 32% improvement in adjusted EBITDA YTD Q3 2024 • 98% on time delivery Q4 2024 vs 78% Q4 2022 • 4+ fold Reduction in complaints FY 2024 vs FY 2022 APPLYING SBS TO DRIVE IMPROVEMENT Acquire Smartly, Consolidate Quickly, Leverage SBS to Deliver Value TARGETING ASSETS WITHROI • Identify high-value sol
Slide 10: Fluidigm Case Study: Improving Key Operational and Financial Metrics
10 Fluidigm Case Study: Improving KEY Operational and Financial Metrics STRATEGIC RATIONALE • Company had spent ~$900M of cash prior to acquisition, and despite 20+ years of operations, declining sales and extensive operating losses. • Attractive jumping off point and an instrument sales chassis for
Slide 11: SomaLogic Merger: Improving Key Metrics, Months In
11 SomaLogic Merger: Improving Key Metrics, 12 Months In STRATEGIC RATIONALE • Company had spent ~$800M of cash prior to acquisition; similar to Fluidigm, required operating discipline to drive to profitability • Cash position of $425M+ pre merger. Enabled further restructuring activities, investmen
Slide 12: Executing Our M&A Strategy: Two Transformative Acquisitions
12 Executing Our M&A Strategy: Two Transformative Acquisitions FY22 $98M FY24 FY 25 - 26 $106M FY23 $174M M&A SBS FLYWHEEL M&A STRATEGY DRIVING REVENUE GROWTH New Asset LEAN TRANSFORMATION: Realizing value through reduction in cost-per-unit KAIZEN Continuously Improve on margin & customer delivery C
Slide 13: Standard BioTools Merged Two Businesses
Standard Biotools CONFIDENTIAL 13 Merged Two Businesses: Turned around two technology focused cash burning situations to $174 million in revenue with path to 2026 profitability Leveraged SBS and lean systems on cost & quality: Delivered $100million+ in overall cost savings to two acquisitions, while
Slide 14: Product Portfolio & Opportunity
Product Portfolio & Opportunity 14
Slide 15: Proteomics: A Large Opportunity, Entering Transformative Era
Proteomics: A Large Opportunity, Entering Transformative Era 15 1 Biospace 2024. Transformative Era Impacting Large Areas of Human Health Cardiometabolic (i.e. GLP-1), cardiovascular, Alzheimer's, and immunological disease Targeted Oncology & Gene Variant Diseases Limited / Targeted Populations Larg
Slide 16: Portfolio Capitalizing on Transition from Genomics to Proteomics
SOMASCAN PLASMA PROTEOME KREX ANTIBODY PROFILING OMICS AS A SERVICE SINGLE CELL PROTEOMICS SPATIAL PROTEOMICS SERVICES & CONSUMABLES Portfolio Capitalizing on Transition from Genomics to Proteomics 16 Reflects combined historical information with certain adjustments, assuming the merger closed on Ja
Slide 17: Proteomics Era Unlocked with DNA-Based SOMAmers
Proteomics Era Unlocked with DNA-Based SOMAmers 17 Population Genomics Population Proteomics Detect ATCG Distinct Capture of 10K+ proteins DNA Based SOMAmers: Scale in ways Antibodies Cannot 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 0 2000 4000 6000 8000 10000 12000 # protein measurements Precision on du
Slide 18: SomaScan: Leading Platform, Data, & Therapeutic Partners
SomaScan: Leading Platform, Data, & Therapeutic Partners 18 1,000+ Proteomics publications SBI's Leading SOMAmer Solution Positioned at '25 Tipping Point Published January 03, '25 by Novo Nordisk Measuring ~6,400 human proteins in nearly 2,000 participants, uncovered key insights into semaglutide (i
Slide 19: Transformative Opportunity: Integration of SOMAmers with Illumina's NGS Platform
Transformative Opportunity 19 Integration of SOMAmers with Illumina's Leading NGS Platform Transformative Era for Proteomics: Opportunity over the next decade + Multiple '24 Studies: Aptamers are Only Scalable Solution on the Market Today Key ’24/’25 Data: Leading Population Biomarker Studies1 2000+
Slide 20: Our Approach
Standard BioTools 20 OUR APPROACH Operate as OWNERS, act like INVESTORS “Increase ROI, Diversify Risk & Generate Returns” Focus on EFFICENCY to grow PROFITS “Without Margin, there is no Mission” Offer SOLUTIONS that enable “We are a business not a technology or 'omics application”
Slide 21: Appendix: Financials
Appendix: Financials 21
Slide 22: Q3 2024 Revenue
Q3 2024 Revenue Continued Focus on Diversifying Revenue Mix Pro Forma Combined Q3 2024 YOY Q3 YTD 2024 YOY Consumables $14M 13% $45M 21% Instruments $6M (42%) $20M (28%) Lab Services $18M 1% $41M (23%) Field Services $6M (4%) $19M 0% Collaboration and other $1M 10% $3M (19%) TOTAL $45M (5%) $128M (9
Slide 23: Q3 2024 Gross Margin (Non-GAAP)
Q3 2024 Gross Margin (Non-GAAP) Pro Forma Combined Q3 2024 YoY Q3 YTD 2024 YoY Non-GAAP Gross Margin $ $26M $1M $68M ($5M) Non-GAAP Gross Margin % 57% 520 bps 53% 110 bps Executing Roadmap to Expanded Gross Margin Profile • 520 bps positive impact in Q3 2024 over Q3 2023 from mix shift driven by low
Slide 24: Q3 2024 Operating Expenses (Non-GAAP)
Q3 2024 Operating Expenses (Non-GAAP) Non-GAAP OpEx Reduction Showing up in Q3 Run Rate • 24% and $13M reduction in Q3 2024 pro forma combined non-GAAP Opex over Q3 2023 • Ahead of plan on synergies with $80M merger cost synergies operationalized; preserving investments in growth initiatives Non-GAA
Slide 25: Q3 2024 Adjusted EBITDA (Non-GAAP)
Q3 2024 Adjusted EBITDA (Non-GAAP) Maintain Vigilance and Focus on Bottom Line Pro Forma Combined Q3 2024 YoY Q3 YTD 2024 YoY Operating Loss $ ($32M) $16M ($147M) $6M Net Loss $ ($27M) $14M ($135M) ($26M) Adjusted EBITDA $ ($14M) $14M ($69M) $33M • 50% and $14M improvement in Q3 2024 pro forma combi
Slide 26: Q3 2024 Cash
Q3 2024 Cash Numbers in cash use table are non-GAAP and based on calculations derived from company’s financial books and records. Adjusted cash burn excludes transaction and integration-related, restructuring-related, capex, and share repurchases. | Numbers may not add, and percentages may not foot
Slide 27: Capitalization Table
Capitalization Table (in millions, except per share data) Issued and Outstanding(a) Fully Diluted Common Shares 372M 372M 2019 Convertible Notes (b) - 19M Restricted Stock Units - 14M Warrants(c) - 12M Stock Options (d) - 40M Total Shares 372M 457M Market Capitalization (e) $718M Cash and short-term
Slide 28: Non-GAAP Reconciliation Gross Margin
Non-GAAP Reconciliation Gross Margin Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding. As Reported Pro Forma Q3 2024 Q3 2023 Q3 2024
Slide 29: Non-GAAP Reconciliation - YTD Gross Margin
Non-GAAP Reconciliation - YTD Gross Margin Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding. As Reported Pro Forma Q3 YTD 2024 Q3 YT
Slide 30: Non-GAAP Reconciliation Operating Expenses
Non-GAAP Reconciliation Operating Expenses Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding. As Reported Pro Forma In $M Q3 2024 Q3
Slide 31: Non-GAAP Reconciliation - YTD Operating Expenses
Non-GAAP Reconciliation - YTD Operating Expenses Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding. As Reported Pro Forma In $M Q3 YT
Standard BioTools — Investor Presentation (January 2025) on 6ix