Chembio Diagnostics — Investor Presentation (May 2019)
24 slides from Chembio Diagnostics's investor presentation, May 29, 2019
Slide 1: Corporate Presentation May 2019
Corporate PresentationMay 2019 © 2018 Chembio. All Rights Reserved. | # © 2019 Chembio. All Rights Reserved. Page 1
Slide 2: Safe Harbor Statement
Statements contained herein that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of Chembio and its management. Such statements reflect manag
Slide 3: Chembio Diagnostics
We deliver high-quality diagnostic tests that use a small drop of fingertip blood and provide results in approximately 15 minutes © 2019 Chembio. All Rights Reserved. Page 3 Chembio Diagnostics
Slide 4: DPP HIV 1/2 Assay and Test Cartridge
99.8% Sensitivity(1)100% Specificity(1) Patented DPP® Technology Platform (1) Based on fingerstick whole blood samples: DPP® HIV 1/2 Assay Product FeaturesSimple: easy to useFast: results in ~15 minutesReliable: FDA approved, CLIA waivedProduct UniquenessEnhanced sensitivity and specificityAdvanced
Slide 5: DPP technology enhanced through optical analyzer
DPP® technology is enhanced through use of an optical analyzer Provides data capture, storage, and connectivity (e.g., Bluetooth, cloud, direct)Enables quantitative measurement Drives down level of detection and improves analytical sensitivitySimplifies interpretation of results compared to visually
Slide 6: Lateral Flow Test Market
Lateral Flow Test Market: $5.5B(1)Expected to grow at 8.2% CAGR(1), reaching $8.2B(1) (2022) © 2019 Chembio. All Rights Reserved. Page 6 Infectious disease is the largest and fastest growing segment, estimated at $1.4 billion(2) annually and growing at ~10% CAGR(2)Chembio is currently focused on thr
Slide 7: Lateral Flow Infectious Disease Market
HIV has claimed more than 35 million lives to date, including 940,000 in 2017(1)Approximately 36.9 million people were living with HIV at the end of 2017; 1.8 million people became newly infected in 2017(1)Syphilis = Estimated 18 million prevalent cases and 5.6 million new infections annually(2)Deng
Slide 8: 2019 Corporate Priorities
1. Expand Commercialization2. Advance R&D Pipeline3. Prepare for Additional Growth 2019 Corporate Priorities © 2019 Chembio. All Rights Reserved. Page 8
Slide 9: Expand Commercialization
Expand Commercialization 1 © 2019 Chembio. All Rights Reserved. Page 9
Slide 10: Multiple Growth Drivers
Increase market penetration in existing marketsUnited StatesBrazilAfricaEurope Register existing and new products into unchartered countries/regionsLatin AmericaSoutheast Asia Multiple Growth Drivers © 2019 Chembio. All Rights Reserved. Page 10 Expand commercial presenceEuropeUnited States
Slide 11: Expanding our Commercial Presence
© 2019 Chembio. All Rights Reserved. Page 11 Colombia S. Africa Germany Malaysia Kenya Expanding our Commercial PresenceDirect sales presence in US, EU, LATAM, Africa, Asia Brazil United States
Slide 12: Expanding Product Approvals Geographically
Expanding Product Approvals Geographically Product Name U.S. Int’l(1) DPP® HIV 1/2 DPP® HIV-Syphilis Pending FDA Approval DPP® Syphilis Screen & Confirm DPP® Dengue-Zika-Chikungunya DPP® Dengue DPP® Zika FDA EUA DPP® Chikungunya DPP® Leishmania STAT-PAK® HIV 1/2 SURE CHECK® H
Slide 13: HIV-Syphilis Presents U.S. Growth Opportunity
HIV-Syphilis Presents U.S. Growth OpportunityCo-infection and mother-to-child transmission are global health concerns Key AccomplishmentsDeveloped DPP® HIV-Syphilis multiplex testReceived regulatory approvals from ANVISA (Brazil), COFEPRIS (Mexico), CE mark (EU) Completed DPP® HIV-Syphilis U.S. clin
Slide 14: Advance R&D Pipeline
Advance R&D Pipeline 2 © 2019 Chembio. All Rights Reserved. Page 14
Slide 15: Chembio's Infectious Disease Pipeline
Chembio's Infectious Disease PipelinePresents multiple growth opportunities Product Name Collaborator Phase I(Feasibility) Phase II(Development) Phase III(Verification/Validation) Phase IV(Clinical/Regulatory) Phase V(Commercial Launch) DPP® HIV-Syphilis (US) Submitted FDA PMA Q1 2018 DPP® Dengue (I
Slide 16: Leverage our DPP Technology Platform
Leverage our DPP® Technology PlatformWhat opportunities do our technology collaborations provide? Expansion into new marketsCancer DiagnosticsConcussion / Traumatic Brain InjuryVeterinaryBroadening application from POC diagnostics to companion diagnosticsDrugsVaccinesCost-effective research & develo
Slide 17: Chembio's Technology Collaborations
Chembio’s Technology CollaborationsProvides expansion into new markets and fully-funded R&D costs Product Name Collaborator Phase I(Feasibility) Phase II(Development) Phase III(Verification/Validation) Phase IV(Clinical/Regulatory) Phase V(Commercial Launch) DPP® Eosinophilic / Respiratory Ongoing R
Slide 18: Why Global Leaders Choose Chembio
Deep scientific expertise with a proven technology platformSensitive and specificAdvanced multiplexing capabilitiesQuantitative resultsSuccessful track record developing DPP® tests with diverse collaboratorsGlobal commercial companiesGovernmentsNon-governmental organizationsExtensive experience achi
Slide 19: Prepare for Additional Growth
Prepare for Additional Growth 3 © 2019 Chembio. All Rights Reserved. Page 19
Slide 20: Automate U.S. Manufacturing
Automate U.S. ManufacturingAutomated DPP® line commenced production Q1 2019 EfficientReduces variable costs to produce DPP® testsIntelligentEnhances inspection and quality control via vision-guided, robotic operationFlexibleAllows assembly of various configurations of DPP® tests on a single lineScal
Slide 21: Expand and Improve U.S. Facilities
Expand and Improve U.S. FacilitiesNew U.S. Headquarters: 555 Wireless Boulevard, Hauppauge, NY © 2019 Chembio. All Rights Reserved. Page 21 Facility consolidation, expansion and improvement occurs in three phasesPhase 1: Sales, Marketing, Finance, Regulatory, Warehouse, Distribution (H1 2019)Phase 2
Slide 22: Q1 2019 Financials
Q1 2019 Financials Q1 2019 Q1 2018 RevenueGross marginOperating expenseCash balanceNet working capital $8.3 million42.5%$6.6 million(1)$7.4 million$19.9 million $7.7 million46.6%$4.3 million$12.5 million$18.5 million © 2019 Chembio. All Rights Reserved. Page 22 (1) Includes $0.4 million acquisition
Slide 23: Investment Highlights and Five-year targets
Five-year targets: 2023FY Revenue $100M and 2023YE 50% Gross Margins Proprietary DPP® technology platform with broad diagnostic applications, providing enhanced sensitivity and specificity, advanced multiplexing capabilities, and quantitative results Growing infectious disease business (39%) with on
Slide 24: © 2019 Chembio. All Rights Reserved. Page 24
© 2019 Chembio. All Rights Reserved. Page 24
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