Quanterix Corporation · NASDAQ:QTRX
Quanterix — Q3 2020 Earnings Presentation
52 slides from Quanterix's earnings presentation, Nov 5, 2020
Slide 1: Q3 2020 Earnings
Q3 2020 Earnings Kevin Hrusovsky Chairman & CEO November 5, 2020
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend" and similar expressions (as wel
Slide 3: Today's Agenda
Today’s Agenda I. Strategic and Financial Progress – Kevin Hrusovsky – Chairman, CEO i. Q3 2020 Strategic Advances & Highlights ii. Vision and Strategy – Executional / Aspirational value creation II. Financial Report – Amol Chaubal – CFO III. Q&A Q3 2020 Earnings - Nov. 5, 2020 3
Slide 4: Continuing our journey into 2020, despite COVID-19 Headwind
Continuing our journey into 2020, despite COVID-19 Headwind Further pivoting our focus to COVID & Neuro to drive breakout performance PUBLICATIONS* MARKERS* * Cumulative Alzheimer’s Publications Accelerating 985 368 Other 93 70 64 65 30 Infectious Diseases 105 322 60 Oncology* 24 Neurology 50 40 35
Slide 5: Continuing our journey into 2020, despite COVID-19 Headwind
Continuing our journey into 2020, despite COVID-19 Headwind Further pivoting our focus to COVID/ID to drive breakout performance PUBLICATIONS* MARKERS* Accelerator (Trials & Revenue) Instrument Placements Total Revenue $m * Cumulative $m Revenue # of units placed 985 Q1 368 Number of Drug Trial Proj
Slide 6: Neuro + CAC Pivot: Q3 2020 Advances
Neuro + CAC Pivot Q3 2020 Advances NEURO COVID Accelerator Services & China WP2 $18.2m Alzheimer’s drug MS Drug Continuing Antigen Test trials momentum approval solid growth Scale-up Award Major Large China Laboratory pTau-181, N4PE NfL Normative Launched Study Healthcare Surveillance Services Payor
Slide 7: Q3 & YTD 2020
Q3 & YTD 2020 Q3 2020 Q3 2019 YoY $m GAAP Revenue Q3 2019 Q3 2020 Growth% Mix% Revenue ($million) Growth 4.1 Instruments +8% 24% US GAAP $31.4 $14.9 +110% 4.5 Adjusted* $18.3 $14.9 +22% 6.6 Consumables +9% 39% 7.2 Gross Margin (%) Adjusted* 51.5% 51.8% -30 bps Lab. & 4.2 Includes 190 bps adverse Oth
Slide 8: TTM Revenue Stratification
TTM Revenue Stratification 11% 6% 39% 31% 29% Geography Customer Diseases 60% 60% 63% Total Product & Services Revenue Total Product & Services Revenue Consumables & Accl. Services Growth Growth Growth NA +26% Pharma/Biotech CRO +32% Neurology +10% Europe +30% Academia Oncology* +138% +12% Asia +13%
Slide 9: Digital Biomarkers Sensitivity Unlocking Proteomics Potential
Digital Biomarkers Sensitivity Unlocking Proteomics Potential ‘70-’00 Research Clinical Analog (ng / ml) 1300 Proteins 200 Proteins ‘00-’14 (pg / ml) 2014+ (fg / ml) 1000 to Research Clinical 100,000x 100,000 1000 Digital More Proteins Proteins sensitive Q3 2020 Earnings - Nov. 5, 2020 9
Slide 10: Digital Biomarkers Sensitivity Unlocking Proteomics Potential
Digital Biomarkers Sensitivity Unlocking Proteomics Potential ‘70-’00 Research Clinical LATE : INVASIVE Analog (ng / ml) 1300 Proteins 200 Proteins ‘00-’14 (pg / ml) 2014+ (fg / ml) 1000 to Research Clinical 100,000x 100,000 1000 Digital More Proteins Proteins EARLY : NON-INVASIVE sensitive Q3 2020
Slide 11: Proteins Predictive of Health
Proteins Predictive of Health Abundance 100,000+ Diet proteins Infections Stress Radiation Lifestyle RNA Drugs Pollution 22,000 Poor Diet SMOKER genes Diabetes Cancer Disease Triggers Relevance Q3 2020 Earnings - Nov. 5, 2020 11
Slide 12: Simoa Enlightens Health to Disease Continuum
Simoa® Enlightens Health to Disease Continuum SICK, H E A LT H C A R E SICK CARE CONCENTRATION A S Y M P T O M AT I C BIOMARKER Biopsy, SYMPTOMS SICKNESS BEGINS spinal tap, 218 pubs* and other cancer invasive procedures I N VA S I V E N E S S neuro 569 pubs cardio 105 pubs GOAL infectious disease co
Slide 13: Simoa Enlightens Health to Disease Continuum
Simoa® Enlightens Health to Disease Continuum SICK, H E A LT H C A R E SICK CARE CONCENTRATION A S Y M P T O M AT I C BIOMARKER Biopsy, SYMPTOMS SICKNESS BEGINS spinal tap, 218 pubs* and other cancer invasive procedures I N VA S I V E N E S S neuro 569 pubs cardio 105 pubs GOAL infectious disease co
Slide 14: Simoa Enlightens Health to Disease Continuum
Simoa® Enlightens Health to Disease Continuum SICK, H E A LT H C A R E SICK CARE CONCENTRATION A S Y M P T O M AT I C BIOMARKER Biopsy, SYMPTOMS SICKNESS BEGINS spinal tap, 218 pubs* and other cancer invasive procedures I N VA S I V E N E S S Current neuro detection limit 569 pubs cardio 105 pubs Si
Slide 15: Transforming Drug Development
Transforming Drug Development Drug Performance Probability Of Drug Approval Rapid Adoption Of SimoaTM TOXICITY 300% Instruments at CROs Projects at Quanterix Adverse drug events are a substantial increase if biomarkers are used cause of death in USA 128 EFFICACY Hematology 26.1% 55 Depression 62% In
Slide 16: Rapid Adoption for Transforming Drug Development - 2019
Rapid Adoption for Transforming Drug Development - 2019 Research Institutions Biopharma CROs & Other Q3 2020 Earnings - Nov. 5, 2020 16
Slide 17: Serum Nf-L Powering Major Drug Trials
Serum Nf-L Powering Major Drug Trials $22B Market – 16 drugs Relapse Right Drug? • Phase III ASCLEPIOS I/II trials APPROVED IN Q3 • Nf-L used as secondary endpoint, reduction after 3 months • Approved in Q3 2020 • Phase III OPERA I/II AND ORATORIO trials: Nf-L lowered to healthy. • Ocrevus: $1.75B s
Slide 18: Revolution in Neuronal Biomarkers Measurement: CSF & Blood
Revolution in Neuronal Biomarkers Measurement: CSF & Blood NfL: 100 to 200 pg/ml NfL: 2 to 4 pg/ml AΒ 42: 451 pg/ml AΒ 42: 4.70 pg/ml Tau: 87 pg/ml Tau: 1.65 pg/ml Cerebral spinal fluid BBB Blood vessels Simoa Ultrasensitive detection required to quantify in blood Q3 2020 Earnings - Nov. 5, 2020 18
Slide 19: Revolution in Neuronal Biomarkers Measurement: CSF & Blood
Revolution in Neuronal Biomarkers Measurement: CSF & Blood NfL: 100 to 200 pg/ml NfL: 2 to 4 pg/ml AΒ 42: 451 pg/ml AΒ 42: 4.70 pg/ml Tau: 87 pg/ml Tau: 1.65 pg/ml Cerebral spinal fluid BBB Blood vessels Simoa Ultrasensitive detection required to quantify in blood Q3 2020 Earnings - Nov. 5, 2020 19
Slide 20: Neuro Diagnostics
Neuro Diagnostics CSF-based IVDs and NeuroTool Kit • Aβ42 • tTau • pTau181 Alzheimer's • Nf-L • BDNF • SNAP-25 Parkinson’s • α-synuclein • GDF-15 • IL-6 Multiple Sclerosis • GFAP • Neurogranin • NPTX2 Traumatic Brain Injury • S100b • sTREM2 • TDP43 Lewy Body Dementia • VILP-1 • YKL-40 • MMP-3 Huntin
Slide 21: Neuro Diagnostics
Neuro Diagnostics CSF-based Blood-based IVDs and NeuroTool Kit SIMOA Neuro Assays • Aβ42 • tTau • pTau181 Aβ42,Aβ40 tTau pTau181/217 Alzheimer's • Nf-L • BDNF • SNAP-25 Nf-L BDNF SNAP-25 Parkinson’s • α-synuclein • GDF-15 • IL-6 α-synuclein • GDF-15 IL-6 Multiple Sclerosis • GFAP • N
Slide 22: An Alzheimer's blood test is now within reach
An Alzheimer’s blood test is now within reach.... Very early detection Blood p-Tau 217 Blood Nf-L Q3 2020 Earnings - Nov. 5, 2020 22
Slide 23: An Alzheimer's blood test is now within reach
An Alzheimer’s blood test is now within reach.... Very early detection High specificity and clinical accuracy Blood p-Tau 217 Blood p-Tau 181 Blood p-tau181 predicts amyloid pathology & identifies AD Blood Nf-L Strong correlation between CSF and blood p-tau181 Q3 2020 Earnings - Nov. 5, 2020 23
Slide 24: An Alzheimer's blood test is now within reach
An Alzheimer’s blood test is now within reach.... Very early detection High specificity and clinical accuracy Relevance to Alzheimer’s treatment Blood p-Tau 217 Blood p-Tau 181 CSF p-Tau 181 Blood p-tau181 predicts amyloid pathology & identifies AD Blood Nf-L CSF p-tau181 modulated by aducanumab Str
Slide 25: Nf-L Rapidly Expanding as Best In Class Neuro Biomarker
Nf-L Rapidly Expanding as Best In Class Neuro Biomarker PEER-REVIEWED PUBLICATIONS ON Nf-L 160 Simoa Nf-L Nf-LNFL PUBLICATIONS PUBLICATIONS Key meeting Abstracts and presentations 25 60 2015 Our Focus 140 50 2016 20 2017 PubMed Citations 40 120 2018 30 42 MS Nf-L 15 134 Nf-L 49 100 20 40 clinical tr
Slide 26: High-Definition picture of SARS-CoV-2 Infection
High-Definition picture of SARS-CoV-2 Infection 3 Innate Immune Response 1 High Sensitivity Antigen 2 Serology 4 NfL – Brain Health Cytokine Storm Selected for Awarded 5 IRB Studies Measure impact on Brain Profiling & Risk NIH RADx $20M Awards with Payer Group Vaccine & drug development & Cognitive
Slide 27: Expanding the Diagnostic Window
Expanding the Diagnostic Window Diagnostic Utility In Asymptomatic & Pre-Symptomatic Patients Robust Antigen Detection from Dried Blood Key priority: expand the diagnostic window to Spots in Pre & Asymptomatic Patients open the door for asymptomatic & pre- symptomatic population surveillance testing
Slide 28: Considerations for Agencies & Commercialization Logic
Considerations for Agencies & Commercialization Logic National Pace of Impact Authorization Blood Saliva What is FDA’s view on pre-symptomatic & Oral Swab asymptomatic spread given the urgent challenges with current testing? Nasal Swab NP Swab National testing needs to be urgently corrected BUT the
Slide 29: Emerging Payer & Biomarker Relationship Holds Disruption Promise
Emerging Payer & Biomarker Relationship Holds Disruption Promise Payer Groups Millions of Members Goal: Improved Outcomes Early detection, remove cost, lengthen life, add members PPH Ecosystem Q3 2020 Earnings - Nov. 5, 2020 29
Slide 30: Emerging Payer & Biomarker Relationship Holds Disruption Promise
Emerging Payer & Biomarker Relationship Holds Disruption Promise Massive Opportunity to Transform Healthcare Payer Groups Millions of Members Five IRB’s Underway Goal: Improved Outcomes Acquired HDx for R&D Early detection, remove cost, Vaccine Durability is Focus lengthen life, add members PPH Ecos
Slide 31: Emerging Payer & Biomarker Relationship Holds Disruption Promise
Emerging Payer & Biomarker Relationship Holds Disruption Promise Massive Opportunity to Transform Healthcare Payer Groups Millions of Members Five IRB’s Underway Goal: Improved Outcomes Acquired HDx for R&D Early detection, remove cost, Vaccine Durability is Focus lengthen life, add members A. Known
Slide 32: cancerSEEK - Multi-Omic Liquid Biopsy
cancerSEEK - “Multi-Omic” Liquid Biopsy 2,000 DNA variants, 8 proteins used in classifier for cancer screening A B C 100% 100% 100% Proportion Detected by cancerSEEK (%) Proportion Detected by cancerSEEK (%) 80% 80% 80% 60% 60% 60% Sensitivity (%) AUC 40% 40% 40% 91% (90%-92%) 20% 20% 20% 0% 0% 0% 1
Slide 33: Proteins Used in Classification – False Negative Results
Proteins Used in Classification – False Negative Results Stage I,II,III False Negative Samples CEA TIMP-1 cancerSEEK LLOQ 500pg/mL Simoa LLOQ 2.33pg/mL Prolactin OPN CA19-9 MPO cancerSEEK LLOQ 16 U.mL HGF Simoa LLOQ 0.041 U/mL CEA CA19-9 CA125 CA-125 cancerSEEK LLOQ 5 U/mL 0% 10% 20% 30% 40% 50% 60%
Slide 34: Protein Biomarkers Measurement in CancerSEEK
Protein Biomarkers Measurement in CancerSEEK Breast Cancer False Negative Results 120% Breast Cancer False Negative Samples Protein xMap LLOQ Simoa LLOQ 100% TGFα 20 pg/mL 0.207 pg/mL NSE 1000 pg/mL 9.88 pg/mL 80% Leptin 2500 pg/mL 2.46 pg/mL 60% IL-8 30 pg/mL 0.092 pg/mL 40% IL-6 3 pg/mL 0.010 pg/m
Slide 35: Disruptive innovation in sensitivity catalyzes TAM expansion
Disruptive innovation in sensitivity catalyzes TAM expansion Q U A L I TAT I V E N E AT SINGLEPLEX H I G H I N VA S I V E N E S S L AT E E A R LY TA M LOW S E N S I T I V I T Y HIGH CURRENT NEW DETECTION LIMIT Q3 2020 Earnings - Nov. 5, 2020 35
Slide 36: Disruptive innovation in sensitivity catalyzes TAM expansion
Disruptive innovation in sensitivity catalyzes TAM expansion Q U A L I TAT I V E N E AT SINGLEPLEX H I G H I N VA S I V E N E S S L AT E E A R LY TA M LOW S E N S I T I V I T Y HIGH CURRENT NEW DETECTION LIMIT Q3 2020 Earnings - Nov. 5, 2020 36
Slide 37: Disruptive innovation in sensitivity catalyzes TAM expansion
Disruptive innovation in sensitivity catalyzes TAM expansion Q U A L I TAT I V E N E AT SINGLEPLEX H I G H I N VA S I V E N E S S L AT E E A R LY TA M LOW S E N S I T I V I T Y HIGH CURRENT NEW DETECTION LIMIT Q3 2020 Earnings - Nov. 5, 2020 37
Slide 38: Sensitivity catalyzes TAM expansion
Sensitivity catalyzes TAM expansion Q U A L I TAT I V E N E AT SINGLEPLEX H I G H I N VA S I V E N E S S L AT E E A R LY TA M LOW S E N S I T I V I T Y HIGH CURRENT NEW DETECTION LIMIT Q3 2020 Earnings - Nov. 5, 2020 38
Slide 39: Disruptive innovation in sensitivity catalyzes TAM expansion
Disruptive innovation in sensitivity catalyzes TAM expansion Q U A L I TAT I V E N E AT SINGLEPLEX H I G H I N VA S I V E N E S S L AT E E A R LY TA M LOW S E N S I T I V I T Y HIGH CURRENT NEW DETECTION LIMIT Q3 2020 Earnings - Nov. 5, 2020 39
Slide 40: Digital Molecules of Life; QTRX Focused on Proteins & Sensitivity
Digital Molecules of Life; QTRX Focused on Proteins & Sensitivity $ $$ IVD Products $8B Next LDT Generation TRIALS Lab Sequencing $ $$ Nucleic Acid Genomics Health Screens $ Research Genomics TAM: $21B $$ Clinical Genomics TAM: $10B Q3 2020 Earnings - Nov. 5, 2020 40
Slide 41: Digital Molecules of Life; QTRX Focused on Proteins & Sensitivity
Digital Molecules of Life; QTRX Focused on Proteins & Sensitivity Research Proteomics TAM: $1B Clinical Proteomics TAM: $10B $90B Low Risk / Return Higher Risk / Return $ $$ Proteomics IVD Products Protein Quanterix Early detection, home sampling, multiplex and quantitative LDT “Trojan Horse” TRIALS
Slide 42: Digital Molecules of Life; QTRX Focused on Proteins & Sensitivity
Digital Molecules of Life; QTRX Focused on Proteins & Sensitivity Research Proteomics TAM: $1B Clinical Proteomics TAM: $10B $90B Low Risk / Return Higher Risk / Return $ $$ Proteomics IVD Products Protein Quanterix Early detection, home sampling, multiplex and quantitative LDT TRIALS Lab $ $$ 1 2 T
Slide 43: Capture Major Market Opportunity
Capture Major Market Opportunity Increase Penetration 1 30 - 40% Long-term CAGR Research TAM: $1B COVID ( I N F E C T I O U S D I S E A S E S ) < 1 % PEN ET RA TED Oncology / Immunoassay < 1 % PEN ET RA TED Neurology < 1 0% PEN ET RA T ED Oncology & Other COVID $200M Neuro $350M Q3 2020 Earnings - N
Slide 44: Capture Market Opportunity
Capture Market Opportunity Increase Penetration 1 30 - 40% Long Term CAGR 2 Expand into diagnostics Research TAM: $1B Diagnostics TAM: $10B COVID ( I N F E C T I O U S D I S E A S E S ) < 1 % PEN ET RA TED Oncology / Immunoassay < 1 % PEN ET RA TED Neurology < 1 0% PEN ET RA T ED COVID $5B Oncology
Slide 45: Capture Market Opportunity
Capture Market Opportunity Increase Penetration 1 30 - 40% Long-term CAGR 2 Expand into diagnostics Research TAM: $1B Diagnostics TAM: $10B $90B COVID ( I N F E C T I O U S D I S E A S E S ) < 1 % PEN ET RA TED Oncology / Immunoassay < 1 % PEN ET RA TED Neurology < 1 0% PEN ET RA T ED COVID $5B Onco
Slide 46: From Technology to Applications
From Technology to Applications Q3 2020 Earnings - Nov. 5, 2020 46
Slide 47: From Technology to Applications
From Technology to Applications Exact Sciences $16B VALUE Thrive $2.5B Illumina $48B VALUE Grail $8B Q3 2020 Earnings - Nov. 5, 2020 47
Slide 48: From Technology to Applications
From Technology to Applications Exact Sciences $16B VALUE Thrive $2.5B Illumina $48B VALUE Grail $8B Proteomics Q3 2020 Earnings - Nov. 5, 2020 48
Slide 49: Q3 2020 Financials
Q3 2020 Financials in $m Q3 (3 Months) YTD (9 Months) $m Q3 & YTD Cash Flow GAAP Non-GAAP * GAAP Non-GAAP * Restricted Cash 174.2 2020 2019 2020 2019 2020 2019 2020 2019 1.0 Instruments 4.5 4.1 4.5 4.1 11.0 10.3 11.0 10.3 -$7m 91.4 Growth vs. PYR +8% +8% +7% +7% 89.8 Consumables 7.2 6.6 7.2 6.6 17.3
Slide 50: Poised to Disrupt Healthcare and Create Significant Value
Poised to Disrupt Healthcare and Create Significant Value Execution: 2 – 3x value creation Aspirational: 10 – 15x value creation Differentiator Value Best in 1 Category-defining; Unrivaled Sensitivity / Technology Disrupt Class 2 $1B to $90B New Methodical market penetration strategy to reward inves
Slide 51: Appendix
Appendix Q3 2020 Earnings - Nov. 5, 2020 51
Slide 52: Use of Non-GAAP numbers
Use of Non-GAAP numbers Note 1: During the three and nine months ended September 30, Cost of Income Total Gross Gross Operating 2020, we recognized $10.0 million in license revenue in connection Goods (Loss) from with a non-exclusive license agreement with Abbott Laboratories. Revenue Profit Margin