jefferies 2019 healthcare conference laboratories.pdfglobal organizationalstructureand executive...
TRANSCRIPT
Bio-Rad Laboratories, Inc.Jefferies 2019 Healthcare Conference
2
Forward-Looking Statements
Some statements in this presentation may be forward-looking statements within the meaning ofthe Private Securities Litigation Reform Act of 1995, including, without limitation, statements regardingour investment in high growth emerging markets and development of new products, applications andtechnologies, our new focus on lab to clinic solutions, improvements to our operational efficiency, growthof markets and demand for products, and our future financial performance. Forward-looking statementsgenerally can be identified by the use of forward-looking terminology such as, “anticipate,” “believe,”“expect,” “assume,” “continue,” “may,” “will,” “intend,” “estimate,” or similar expressions or the negative ofthose terms or expressions, although not all forward-looking statements contain these words. Thesestatements are subject to risks, uncertainties and other factors that could cause actual results to differmaterially from our expectations. Such factors include, but are not limited to, recent changes to ourglobal organizational structure and executive management team, difficulties in implementing our globalERP system, our ability to develop and market new or improved products according to our businessplan, currency fluctuations and other factors discussed in more detail in our recent filings with theSecurities and Exchange Commission. The forward-looking statements contained in this presentationreflect our views and assumptions only as of the date of this presentation. We do not undertake anyobligation to publicly update any forward-looking statements.
Advance discovery. Improve lives.
3
Bio-Rad Today
Continuous Innovation
A History of Contribution
8,300+Employees Worldwide
65+Years StrongPerformance
$2.2B+Annual Sales
Key CompetenciesFueling Ongoing Growth
Complementary Business Mix
Leveraging Across the Company
Advance discovery. Improve lives.
4
Bio-Rad Global Profile
BioPharma
11%
Reference Labs
13%Transfusion Labs
12%
Academic
23%
Applied
3%
Hospital Labs
38%
Americas
44%
EMEA
35%
Asia
21%
Diversified Customer Base Worldwide Presence Broad Product Base
Customers Geography Products
Advance discovery. Improve lives.
5
A History of Innovation
1972Electrophoresis grade chemicals are introduced
2000 Launched the first 4-color real time PCR platform on the market
2017Bio-Rad launches the first digital PCR CE-IVD test to monitor levels of BCR-ABL in cancer
2012Bio-Rad launches the droplet digital PCR system
1967: Bio-Rad launches first T-4 by column test revolutionizing Thyroid testing
1982: First commercial test for Hemoglobin A1c
2006: Place first multiplex immunoassay system BioPlex 2200
Advance discovery. Improve lives.
6
Leadership Positions
DNA amplification
Gel image
Protein Assay Quality Control
Blood Typing
Bio-Chromatography
Infectious Disease
Diabetes
Autoimmune
Digital Biology
Electrophoresis
Advance discovery. Improve lives.
Market Focus
7
Bio-Rad is Well-Positioned in New Focus on Lab to Clinic Solutions
Translational Research Continuum
Discovery Development Production Treatment & follow up
• Basic disease mechanism research
• Pathway research• Target
identification
• Target validation• Lead development
of a therapy and/or diagnostics
• Pre-clinical studies
• Clinical studies• Regulatory• Drug and/or
diagnostics mfg. & commercialization
• Treatment planning and monitoring
• Post-market surveillance
- Bio-Rad Confidential - Advance discovery. Improve lives.
Genomics, Cell Biology, Proteomic, Software & Informatics
8
Life Science Profile
Asia
26%Americas
43%
EMEA
31%
Consumables
48%
Instruments/Apparatus
52%
Applied Markets
7%Research
63%
BioPharma
30%
HighlightsMarket Size: $45B–50BMarket Growth 4% CAGR Addressable Market: $8–9B
Source: Bio-Rad Internal
CustomerSegments
RevenueGeography
Products
Advance discovery. Improve lives.
9
Life Science SolutionsGenotyping & Gene
Expression (PCR & qPCR)
Protein Purification(chromatography)
Gene Transfer & Modulation
Protein Expression (multi-analyte detection)
Cellular Imaging
Protein Quantification(western blotting)
AntibodiesCell Sorting & Analysis
Multi-omicsSolutions
Digital Biology(Droplet Digital PCR, ddSeq)
Advance discovery. Improve lives.
10
Cell Biology
New Entrant in Growing Market Flow Cytometry Cell Sorters
and Analyzers Cell Imagers and Counters Flow Cytometry Reagents & Assays Flow Cytometry Antibodies
ZOE Fluorescent Cell Imager ZE5 Cell Analyzer
TC20 Automated Cell Counter
S3e Cell Sorter
Flow Cytometry Antibodies
Advance discovery. Improve lives.
11
Digital Biology
Leadership Position
• ddPCR technology
• Broad IP portfolio
• Broad application from research to therapeutics
• Rapid development of new applications
Advance discovery. Improve lives.
12
Clinical Diagnostics Profile
HighlightsMarket Size: $55-60B Addressable Market: $5.5B Market Growth ~ 5%
TransfusionLaboratory
18%
CustomerSegments Hospital
Laboratory
61%
Source: Bio-Rad Internal
EMEA
39%
Americas
42%
Asia
19%
RevenueGeography
Instruments
25%
Reagents
75%
Products
ReferenceLaboratory
21%
Advance discovery. Improve lives.
13
Clinical Diagnostics
Blood Typing Blood Virus Screening HIV Confirmation Testing
Protecting the Blood Supply
Diagnostic Testing and Monitoring
Diabetes Infectious Disease Autoimmune Transfusion Compatibility
Quality Controls Quality Assessments Data Management
Quality Assurance
Advance discovery. Improve lives.
14
Highlights Bio-Rad #2 in Market 3,000+ Automated Systems Placed Unrivalled Results Management Broadest portfolio for safe transfusions
Geographic Expansion IH-1000 and IH-500 FDA Approvals IH-Com and Manual Systems Approval Growing Demand in Emerging Markets
Blood Typing
IH-500
Tango infinity
IH-1000
Gel Cards
IH-Com & IH-WebResults Management
Advance discovery. Improve lives.
15
Portfolio Expansion
Near Term Focus• Core Market Enhancement• Microbiome• Point of Care• Non-Invasive Prenatal Testing
Advance discovery. Improve lives.
16
The Importance Of Clinical Diagnostics In Healthcare
Earlier detection saves lives• Lowers total costs• Reduces risks• Increases satisfaction• Improves treatment efficiency
Targeted Disease Prevention
Early Disease Detection
Accelerated Diagnostics
Targeted Therapy
Improved Outcomes
Advance discovery. Improve lives.
17
Diabetes
Diabetes is an accelerating global problem.
Advance discovery. Improve lives.
18
Bio-Rad Pioneered HbA1c Testing
Bio-Rad provides HbA1c testing solutions for all segments, leading to better outcomes for patients with diabetes.
Small Labs / Clinics
Medium Labs Large Labs
D-10 VARIANT II D-100
Advance discovery. Improve lives.
19
Cancer
The global cancer burden continues to rise, with 18 million new cases and over 9 million deaths in 2018.
Early Detection Is Key To Survival
* Cancer Research UK Advance discovery. Improve lives.
20
Bio-Rad Is Pioneering Digital PCR In Liquid Biopsy
Systems Consumables Menu
For customers developing and validating tests
Droplet digital PCRplatforms
Large portfolio of assays
Bio-Rad products enable monitoring of a patient’s response to targeted therapy.
Advance discovery. Improve lives.
21
Discovery
Development Therapies
Translational Discovery to Diagnostics
Advance discovery. Improve lives.
Target validation
Lead development of a therapy and/or diagnostics
Pre-clinical studies
Basic disease mechanism research
Pathway research
Target identification
Treatment planning and monitoring
Post-market surveillance
Clinical studies
Regulatory
Drug and/or diagnostics manufacturing and commercialization
Production
Translational Medicine
22
Operational Transformation
Advance discovery. Improve lives.
Building a Scalable Model
23
The Opportunity
Increase visibility Optimize inventory levels Improve service Reduce scrap Lower project overhead
Leverage ERP Investment
Rationalize Global Footprint Consolidate distribution
centers Close redundant
commercial sites Increase Asia
manufacturing
Manage Procurement Centralized Procurement Global price concessions Targeted reduction in
direct and indirect purchases
Advance discovery. Improve lives.
24 Advance discovery. Improve lives.
Creating Shareholder
Value
Accelerating Free Cash
Flow
Driving Revenue Growth
Expanding EBITDA Margins
The Path Forward
Increased Cash Flow Disciplined Capital
Allocation
Geographic Expansion New Products New Markets
Higher Profitability Reduced CAPEX Tax Savings
Optimized Supply Chain Reduced ERP Spend Shared Services Operating Leverage
Key Contributions to Value Creation
25
Summary – Closing Remarks
Investments at an inflection point
Building on our market and product leadership
Increased focus on acquisition opportunities
Leveraging our new organization, operating model and systems to drive value
Advance discovery. Improve lives.
Bio-Rad Laboratories, Inc.Jefferies 2019 Healthcare Conference