Outset Medical, Inc. · NASDAQ:OM
Outset Medical — Investor Presentation (February 2022)
28 slides from Outset Medical's investor presentation, Feb 16, 2022
Slide 1: Outset Medical Investor Presentation February 2022
Outset Medical Investor Presentation February 2022 Exhibit 99.2
Slide 2: Forward-looking statements and non-GAAP information
Forward-looking statements and non-GAAP information This presentation and the accompanying oral statements contain forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are forward-looking statements. In some cases, you
Slide 3: Tablo is a disruptive, first-of-its-kind technology to reduce cost and complexity of dialysis
Tablo is a disruptive, first-of-its-kind technology designed to reduce the cost and complexity of dialysis. 3
Slide 4: Investment highlights
Investment highlights SUMMARY Proven management team with track record of execution $11.4B U.S. U.S. total addressable market1 Recent reimbursement tailwinds expected to drive home dialysis adoption Established footprint in $2.5B U.S. acute care market is a strategic entry point for $8.9B U.S. home
Slide 5: Dialysis is one of the largest, most expensive, least-changed sectors of healthcare
Dialysis is one of the largest, most expensive, least-changed sectors of healthcare $73B Annual spending on dialysis in the U.S. $41B Paid by Medicare Percentage of entire Medicare budget spent on dialysis for ESRD patients, who comprise 1% of the Medicare population (2019) 2020 810,000 ESRD patient
Slide 6: Patients are treated with dialysis across multiple settings of care
CURRENT STATE Patients are treated with dialysis across multiple settings of care ACUTE CARE Hospital & sub-acute based dialysis 4.5 million Treatments/year1 ~ 3% Annual growth rate 81 million Treatments/year2 8–10% Annual growth rate for home dialysis CHRONIC CARE In-center, transitional care & hom
Slide 7: The result: hospitals lose money while patient outcomes remain poor
130,000 new ESRD patients diagnosed annually in the U.S.2 60% “crash” into dialysis $5,000–$15,000 Average loss by hospital for each inpatient stay for renal failure with dialysis1 $25 billion spent on in-center dialysis treatments annually2 34% readmission 30-day hospital readmission rate for hemod
Slide 8: Innovation is desperately needed
Complicated Burdensome Inflexible Expensive labor and supplies Operational inefficiency Low adoption and retention at home Innovation is desperately needed 8
Slide 9: A first-of-its-kind enterprise solution replacing multiple machines and a water treatment room
A first-of-its-kind enterprise solution that replaces multiple machines and a water treatment room with a single device Anywhere An electrical outlet and tap water instead of costly fixed infrastructure Anytime Water purification and dialysate on demand, customized to the patient’s prescription Anyo
Slide 10: Broad technology innovation drives execution against key strategic initiatives
Broad technology innovation drives execution against key strategic initiatives Benefits to customers EMR-integrated treatment data and Tablo fleet management Remote diagnostics and predictive maintenance Remote treatment monitoring and clinical analytics Benefits to Outset Operating efficiencies and
Slide 11: $11.4 billion U.S. addressable market
$8.9 billion1 U.S. Home market $2.5 billion1 U.S. Acute Care market Hospitals, Long-Term Acute Care, Skilled Nursing Facilities $11.4B U.S. addressable market DIALYSIS CARE LANDSCAPE 88% Dialysis in clinic 12% Dialysis at home Note: “CKD” represents Chronic Kidney Disease; “ESRD” represents End Stag
Slide 12: Dialysis is a cost center for hospitals
Dialysis is a cost center for hospitals ACUTE CARE No separate DRG for inpatient dialysis; ~600 DRGs involved dialysis in 2018 60% of hospitals stays involving dialysis resulted in negative operating margin, with average loss of $5,000–$15,000 per stay 536,000 ESRD annual admissions 454,000 Addition
Slide 13: Significant cost savings generated for leading hospitals and health systems
Significant cost savings generated for leading hospitals and health systems ACUTE CARE $5.4M Pre-Tablo $1.5M Supplies savings $1.4M Labor savings $2.4M Post-Tablo Case Study ICU Dialysis Cost Cut by 55% Cleveland Clinic 55% Total potential cost savings $300–$500/Tx Potential payback period <1 year P
Slide 14: Tablo enables health systems to optimize patient care from the ICU to the home
Tablo enables health systems to optimize patient care from the ICU to the home ACUTE CARE Home peritoneal dialysis Home hemodialysis Incident ESRD patients Chronic kidney disease patients ACUTE CHRONIC 01 Reduce acute labor and supplies cost by up to 80%1 02 Over 50 % of chronic dialysis patients ma
Slide 15: The Tablo Home program brings economic opportunity
The Tablo Home program brings economic opportunity ACUTE CARE $15,000– $17,000 Amount of annual profit each patient has the potential to generate for the provider1 ESRD patients Annual revenue outsourced to 3rd party dialysis operators2 Converting 30% of ESRD patients to home program drives 1,000 ~$
Slide 16: Physicians and patients prefer Tablo
Physicians and patients prefer Tablo ACUTE CARE NEPHROLOGISTS n=184 IN-CENTER & PERITONEAL DIALYSIS PATIENTS n=138 77% Rated Tablo as a significant clinical improvement 98% Said Tablo’s benefits make them more likely to recommend home dialysis 72% Rated Tablo as a significant clinical improvement 77
Slide 17: The home market is significantly underpenetrated
The home market is significantly underpenetrated HOME CARE Company estimates based on, and data contained in, U.S. Renal Data System’s 2021 Annual Data Report ~570,000 Chronic dialysis patients 30% Patients eligible for home hemodialysis 2% Patients on home hemodialysis Historical barriers Medicare
Slide 18: Tablo addresses key barriers to home dialysis adoption and retention
Tablo addresses key barriers to home dialysis adoption and retention HOME CARE 3x Treatments per week <25 hours Training per patient 0 hours Dialysate prep time 5–6 Treatments per week 100 hours Training per patient 16–24 hours Dialysate prep time per week Historical device 18
Slide 19: IDE trial demonstrated Tablo's safety and effectiveness in the home
Trial participants Met efficacy endpoints Achieved weekly Std Kt/V ≥ 2.1 Met safety endpoints 1.8% overall incidence of adverse events High home retention rate and treatment compliance 0 % Drop-out during in-home period 99 % Adherence to prescribed home treatment frequency 0 Pre-specified adverse ev
Slide 20: Patients prefer Tablo for home
Touchscreen System simplicity of training tools Treatment setup Alarm troubleshooting Adaptability into your home environment Treatment take-down Machine clean-up and general care Management of dialysis supplies Ease of saline bolus application User flexibility Overall ease of use 100% 89.3% 86.4% 8
Slide 21: Reimbursement tailwinds for home dialysis on Tablo
HOME CARE Reimbursement tailwinds for home dialysis on Tablo 2022–2023 TPNIES ~$23-25/treatment on top of the Medicare base rate for each Tablo home treatment over 2 years CMS determined Tablo to be a substantial clinical improvement over incumbent device Payment is per treatment, irrespective of nu
Slide 22: Outset's highly efficient business model
Outset’s highly efficient business model PROFILE SINGLE PLATFORM Optimizes commercial outreach and manufacturing DATA ECOSYSTEM Streamlines service and support CONSOLE UTILIZATION Leads to higher treatment revenue mix ONGOING REVENUE Initial console purchase generates recurring and predictable consu
Slide 23: Integrated commercial strategy drives acute growth and home expansion
Integrated commercial strategy drives acute growth and home expansion PROFILE CLINICAL SALES REPS Utilization and fleet expansion CAPITAL SALES TEAM System-wide console adoption FIELD SERVICE ENGINEERS Technical support Top-down installed base growth through national and regional customers Expand wi
Slide 24: Strong financials
+113% CAGR 102.6 28.2 17.2 49.9 15.1 2022E 2021 2019 2020 2.8% GM%2 12.0% Fourth quarter revenue ($M) Annual revenue ($M) Strong financials PROFILE as of Dec. 31, 2021 Acute Strong momentum with both new and existing customers Home Encouraging results on faster training and differentiated retention
Slide 25: Strategic focus and key 2022 priorities
Strategic focus and key 2022 priorities PROFILE Revenue growth Guidance of 38%–46% revenue growth in 2022 Health system-centric enterprise solution sold through ongoing land- and-expand model into national and regional health systems Inflection in Tablo home sales Gross margin improvement Guidance o
Slide 26: Outset Medical contact
Outset Medical 3052 Orchard Drive San Jose, CA 95134 outsetmedical.com 26
Slide 27: Appendix
Appendix 27
Slide 28: Reconciliation between GAAP and non-GAAP results
Reconciliation between GAAP and non-GAAP net loss attributable to common stockholders: Reconciliation between GAAP and non-GAAP net loss per share attributable to common stockholders: Reconciliation between GAAP and non-GAAP results of operations: Three Months Ended Years Ended December 31, 2021 202
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