Quanterix Corporation · NASDAQ:QTRX
Quanterix — Q2 2020 Earnings Presentation
35 slides from Quanterix's earnings presentation, Aug 4, 2020
Slide 1: Earnings Call Q2 2020
Earnings Call Q2 2020 Kevin Hrusovsky August 4, 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. Vision and Strategy - Executional / Aspirational value creation ii. 1H 2020 Strategic Advances & Highlights iii. 2H 2020 Growth & Strategic Catalysts II. Financial Report – Amol Chaubal – CFO III. Q&A Quanterix E
Slide 4: Advances in Digital Biomarkers Unlocking Proteomics Potential
Advances in Digital Biomarkers Unlocking Proteomics Potential 1970-’00 RUO IVD (ng / ml) 1300 200 Late : Invasive Proteins Proteins 2000-’14 (pg / ml) 2014+ (fg / ml) 1000x More sensitive + 100x RUO IVD 10,500 1000 Proteins Proteins Early : Non-Invasive Concentration, pg/ml Quanterix Earnings Call |
Slide 5: Simoa Sees Health to Disease Continuum
Simoa® Sees Health to Disease Continuum sickness begins symptoms 209 Current Biopsy, publications* detection Spinal tap limit and other invasive procedures 500 publications New detection Blood, Saliva, 90 limit publications Urine Current detection New limit detection limit * Incl. Immunology & Infla
Slide 6: Compelling and Rare Investment Thesis
Compelling and Rare Investment Thesis Digital Biomarker Disruption EXECUTION ASPIRATION Research: High growth / low risk High Value Diagnostics & Health Screens Short to Mid-term: 2 – 3x Mid to Long-term: 10 – 15x Catalyzing “High Probability” Drug Development Neuro Toolbox Acceleration + COVID + Br
Slide 7: Capture Major Market Opportunity
Capture Major Market Opportunity EXECUTION ASPIRATION $1B - $4B: Research $55B+ Dx & Health Screens Market Growth ~10% p.a. Immunoassay Oncology / Immunology Diagnostics Luminex (55% Share) HD-X $22bn** MSD (17%) Neuro & Disruptive COVID Others (28%) SR-X Diagnostics HD-X & SP-X ~$5bn* COVID HD-X <
Slide 8: Advances Accelerating RUO Execution & Diagnostic Aspirations
Advances Accelerating RUO Execution & Diagnostic Aspirations COVID Compelling Neuro Neuro Tool Box Platform Simoa potentially holds the keys to 100x Launched more sensitivity High-Definition pTau-181, 4-Plex, Testing Attractive Entry pTau 213 license to Precision HD-X is Health Vison Nf-L / pTau Val
Slide 9: Covid-19 Vaccine Watch
Covid-19 Vaccine Watch Quanterix Earnings Call | Q2 2020 | August 4, 2020 | 9
Slide 10: Covid-19 Vaccine Watch
Covid-19 Vaccine Watch Quanterix Earnings Call | Q2 2020 | August 4, 2020 | 10
Slide 11: SARS-CoV-2 Testing Landscape
SARS-CoV-2 Testing Landscape Large gaps in testing arsenal propagate epidemiological risk Sample Type Simoa sensitivity & multiplexing technology Mucosal/local Systemic Nasal swab, Saliva, GCF* Venous, capillary/ Nasopharyngeal swab dried blood spots RT-PCR (qual) Inaccuracy/low T.P. No test/unknown
Slide 12: Simoa holds the keys to complete High-Definition picture of SARS-CoV-2 Infection
Simoa holds the keys to complete High-Definition picture of SARS-CoV-2 Infection 3 Innate Immune Response 1 High Sensitivity Antigen 2 High Definition Serology 4 NfL – Brain Health Cytokine Storm Profiling & Risk Selected for NIH RADx Feasibility Grant Won 5 Studies with one of the largest private M
Slide 13: PPH Network has enabled worldwide outreach through collaborations
PPH Network has enabled worldwide outreach to leverage Simoa capabilities through collaborations with key participants Quanterix Earnings Call | Q2 2020 | August 4, 2020 | 13
Slide 14: Payers + Quanterix; Biomarker Baseline Strategic Partnership
Payers + Quanterix; Biomarker Baseline Strategic Partnership A. Large COVID & health studies with a large Payer Group B. Measure baselines for health, aging & early detection Millions of Members Goal: Improved Goal: Improved Outcomes Outcomes Identify Biomarkers for early detection, Early detection
Slide 15: Simoa Possible Testing Workflow
Simoa Possible Testing Workflow NP RT-PCR Testing: High false negatives On-site/at-home High false negatives sample collection High false positives Worker exposure during sampling Challenged supply chain Rapid/automated Depletion of available PPE sample processing Simoa Home-Based Dried Bl
Slide 16: Highly Sensitive Simoa SARS-CoV-2 Antigen Test
Highly Sensitive Simoa SARS-CoV-2 Antigen Test Improves Performance and May Extend Detection Window Beyond PCR SARS-CoV-1 Antigen Simoa SARS-CoV-2 Antigen in Blood in Blood Days between Patients admitted hospitalization and to ICU intubation Rates of detection, % Days after onset of symptoms Che et
Slide 17: Practical Embodiment of Testing Reach Potential
Practical Embodiment of Testing Reach Potential % US Population Covered LabCorp 16 Primary Testing Sites 53% LabCorp 4 additional Speciality Lab. Sites 175m 4 Additional Metros 9% 40% 130m 7% 13% 24% 10% 80m 5% 7% 31% 23% 12% 25 miles 50 miles 75 miles radius radius radius End of day/end of shift or
Slide 18: Simoa sNf-L Identifies Neuronal Injury in COVID-19 Patients
Simoa sNf-L Identifies Neuronal Injury in COVID-19 Patients Growing body of evidence that COVID-19 is associated with many neurological symptoms including: Loss of Smell Loss of Taste Journal of Neurology Headaches Insomnia Neuronal biomarker (sNF-L) Cognitive would be extremely useful to Impairment
Slide 19: Alzheimer's Blood Testing Advancement
Alzheimer’s Blood Testing Advancement Breakthrough Alzheimer’s Disease testing recently published in JAMA – highlighting: Simoa P-tau 181 Simoa Nf-L Simoa Total Tau P-Tau 217 Quanterix Earnings Call | Q2 2020 | August 4, 2020 | 19
Slide 20: Simoa Technology Has Promise to Advance IVD market
Simoa Technology Has Promise to Advance IVD market Potential to apply validation established in RUO markets WW Immunoassay Market* $bn (2020F) 22 100% • IVD Core-Labs and PoC are large, stable, growing attractive markets w/ high barriers of entry Software 2 Services • QTRX recaptured exclusive IVD r
Slide 21: 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 Q1 348 Number of Drug Trial Projects
Slide 22: Q2 & YTD 1H 2020
Q2 & YTD 1H 2020 $m Revenue Q2 2019 Q2 2020 1x study revenue Growth% Mix% Q2 2020 Q2 2019 YoY 2.7 2% 21% Revenue ($million) Growth Instruments 2.8 0.2 US GAAP $13.1 $13.5 -3.0% 6.1 Consumables -34% 31% 4.0 Gross Margin (%) Lab. & 4.8 Adjusted* 44.1% 51.2% -710 bps 33% 48% Other Services 6.3 Includes
Slide 23: TTM Revenue Stratification
TTM Revenue Stratification 6% 12% 26% 42% 30% Geography Customer Diseases 58% 58% 67% Total Product & Services Revenue Total Product & Services Revenue Consumables & Accl. Services Growth Growth Growth NA +27% Pharma/Biotech CRO +29% Neurology +21% Europe +49% Academia Oncology* +135% +39% Asia +44%
Slide 24: Quanterix Product Offerings
Quanterix Product Offerings Instruments Assay kits Services Bead based Planar HD-X SR-X SP-X Plate Bead Accelerator List Price: $200k List Price: $75k List Price: $75k 300+ assays Contract research 255+ Installed (@YE 2019) 120+ Installed (@YE 2019) 15+ Installed (@YE 2019) (200+ HD-1s, 55+ HD-Xs) H
Slide 25: Blue Chip Customers
Blue Chip Customers 2019 2018 2017 2016 2015 2014 Research Institutions Biopharma CROs & Other Quanterix Earnings Call | Q2 2020 | August 4, 2020 | 25
Slide 26: Addressing a Significant Unmet Need in Drug Development
Addressing a Significant Unmet Need in Drug Development DRUG PERFORMANCE PROBABILITY OF DRUG APPROVAL VALIDATION OF SIMOA IMPACT TOXICITY 300% Instruments at Projects at CROs Quanterix 118 Adverse drug events are a substantial cause of Death in USA increase if biomarkers are used EFFICACY Hematology
Slide 27: FDA Supporting Biomarkers for Drug Development
FDA Supporting Biomarkers for Drug Development 1 Issued guidance to use biomarkers for drug approvals 2 Neuro health is national Priority: Drug makers need Rapid adoption - COVID long-term impairment objective biomarker - Nf-L - veteran PTSD / opioid addiction endpoints - pTau 181 / 213 - Beta Amylo
Slide 28: 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-L PUBLICATIONS NFL PUBLICATIONS Key meeting Abstracts and presentations 60 25 2015 140 Our Focus 50 2016 20 2017 40 PubMed Citations 120 2018 30 42 MS Nf-L 15 134 Nf-L 49 clinical trials clin
Slide 29: 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 • Nf-L used as secondary endpoint, reduction after 3 months • Phase III OPERA I/II AND ORATORIO trials: Nf-L lowered to healthy. • Ocrevus: $1.75B sales, highest MS drug share in US o
Slide 30: Neurofilament light chain (Nf-L): Normative Study Read-Out
Neurofilament light chain (Nf-L): Normative Study Read-Out at ECTRIMS (Sept. 2020); landmark NIH TBI studies Nf-L Clinical Validation Large normative study completed 11,000 healthy controls, >18,000 samples Evidence of Evidence neuronal of damage neuronal damage Illustrative ranges Nf-L, pg/mL No ne
Slide 31: Neuro Diagnostics
Neuro Diagnostics CSF-based Blood-based IVDs and NeuroTool Kit SIMOA Neuro Assays AD • Aβ42 • tTau • pTau181 Aβ42 tTau pTau181/217 • Nf-L • BDNF • SNAP-25 Nf-L BDNF SNAP-25 • α-synuclein • GDF-15 • IL-6 MS α-synuclein • GDF-15 IL-6 SMA GFAP Neurogranin • NPTX2 • GFAP • Neurograni
Slide 32: 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 New Methodical market penetration strategy to reward investors $3B to
Slide 33: Q2 2020 Financial
Q2 2020 Financial $m Q2 Revenue * GAAP Non-GAAP* Q2 2019 Q2 2020 1x Study Revenue +33% -34% In $m Q2 2020 Q2 2019 Q2 2020 Q2 2019 6.1 6.3 0.2 Instruments 2.8 2.7 2.8 2.7 4.8 +2% 4.0 Growth vs. PYR 2% 2% 2.7 2.8 Consumables 4.0 6.1 4.0 6.1 Growth vs. PYR -34% -34% Services 6.3 4.8 6.3 4.8 Instruments
Slide 34: Appendix
Quanterix APPENDIX
Slide 35: Reconciliation of non-GAAP Financials
Reconciliation of non-GAAP Financials In thousands (Unaudited) Three months ended Six months ended in ‘000 USD June 30 June 30 2020 2019 2020 2019 Total revenue $ 13,130 $ 13,536 $ 28,857 $ 25,872 Gross profit $ 5,213 $ 6,931 $ 12,026 $ 12,936 Acquisition-related purchase accounting charges (Note 1)