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TRANSCRIPT
Namal Nawana | CEO and President
Jefferies Global Healthcare
Conference
June 1, 2015
New York
© 2015 Alere Inc.
Namal Nawana, CEO and President
Forward-Looking Statements
This presentation contains forward-looking statements within the
meaning of the federal securities laws. This includes all statements
concerning or relating to our ability to improve clinical outcomes,
improve access to care and to reduce healthcare costs. Such forward-
looking statements are estimates reflecting management’s best
judgment based upon current information and involve a number of risks
and uncertainties. Actual results and the timing of certain events could
differ materially from those projected or contemplated by the forward-
looking statements due to numerous factors, including without
limitation, the risks and uncertainties described in our periodic reports
filed with the Securities and Exchange Commission, including our Form
10-K for the year ended December 31, 2014, as well as in our Quarterly
Reports on Form 10-Q. Our Company undertakes no obligation to
update forward-looking statements.
Global Leader in Rapid Diagnostics
#1toxicology testing
and specialty labs2
in
global
$1.4Bin revenue from
outpatient settings
1Bdelivered in 2014
tests
1stCLIA-waived
molecular POC test4
#1of rapid, point
of care tests1
global
provider
#1of POC infectious
disease testing3
global
provider
1 Frost & Sullivan, Global Point-of-Care Testing (POCT) Market, April 2013, p. 71.2 Alere Company Estimates.3 BCC Research, Espicom, Cowen, Calorama, Company Estimates.4 FDA press release, http://www.fda.gov./News-Events/Newsroom/PressAnnouncements/ucm429127.htm.
2014 Revenue Profile
Cardio -metabolic
33%
Toxicology25%
Consumer Other14%
Infectious Disease
28%
BROAD & DIVERSE
CUSTOMER BASE
Markets
North America54%
Europe21%
Asia Pacific13%
Africa, Latin
America12%
GLOBAL
PRESENCE
Geographies
Services20%
Royalties1%
Instruments3%
STRONG RECURRING
REVENUE
Products
Consumables 76%
3
Leading Market Position
OEM & Retail
Reference Lab
Hospitals
Pain mgmt
Government
Workplace
Sexual Health
HAIs
Respiratory
Liver
Tropical disease
HIV
Mail Order Diabetes
Anti Coag Service
Anti Coag Product
Lipids
HbA1c
Blood gas
Cardiac markers
Cardio-
metabolic
Infectious
Disease
Toxicology
Business
4-yr expected
CAGR, %
Market
Market
Position, #
Market Size
$M
280+
250
400
200
220
880
700
100
300
300
1,000
800
1,500
200
250
400
100+
200
350
-3
9
7
8
4
11
4
6
5
3
3
5
13
18
25
14
-7
16
12Emerging
2
1
2
1
1
2
1
1
2
1
2
1
5
6
3
1
1
1
* Company estimates.
*
Rapidly Growing Addressable Markets
2018 Total
Market Opportunity
$17.1B
$6.8B
New Markets
Molecular
Diagnostics
Immunochemistry
Forensics
2018 Existing
Market Growth
$10.3B
Toxicology
Cardio
metabolic
Infectious disease
2013 POC
Addressable Market
$8.4B
Source: Frost and Sullivan, BBC, BCC Research, Espicom, Cowen, Kalorama, Company Estimates
Toxicology
Cardiometabolic
Infectious Disease
Toxicology
Cardiometabolic
Infectious Disease
5
Infectious Disease: Global Leader in
Lateral Flow Testing
7
#1Position
>600M
Market leading tests
in HIV, Malaria, Dengue,
Respiratory1
tests sold
in 2014
>190M
malaria
>120
countries
HIV
UAT
Testing
#1
in Flu
tests sold
in 2014
Advocated by
Worldwide
Clinical
Guidelines2
# of countries
that utilize Alere
HIV tests
>50% Market
Share in POL1
1 BCC Research, Espicom, Cowen, Calorama, Company Estimates.2 Infectious Diseases Society of America/American Thoracic Society Consensus Guidelines on the Management of Community-Acquired Pneumonia in Adults, Lionel A. Mandell et al; Clinical
Infectious Diseases 2007; 44:S27–72.
Prevention and Diagnosis
Alere HIV Portfolio:
Spanning the Continuum of Care
8
Prevention Monitoring / Management / Care
Staging &
Monitoring
Co-Morbidities
Determine™ HIV 1/2 Ag/Ab
Combo
SD HIV Combo
Alere™ q HIV EID
Alere Pima™ CD4 Analyzer
Alere™ q HIV 1/2 VL
Alere Determine™ TB LAM Ag
Data Point Connectivity
Epocal
Creatinine
Alere™ i:
Disrupting the Market
9
Features Traditional
Lateral FlowLab-based
Molecular Alere i
Molecular Accuracy
Molecular level results allow for improved
sensitivity and specificity
Decentralization
Results at the point of care allow for
feedback and adjustments to care
Rapid Results
Physicians, labs and hospitals desire rapid
tests to improve workflow
Alere™ i Influenza A & B
CLIA Waived
Products:Products:
Cardiometabolic Care Continuum
10
Markets:
Emergency Departments
In-Patient Testing
Products:
Markets:
Office-Based Testing
Pharmacies
Market:
Home Testing
Chronic Chronic at Home
Triage® epoc®
Afinion™ RALS®
LDX® Triage®
INRatio® Afinion™ Nycocard™
Alere™ Home Monitoring
Arriva
Acute
epoc® Blood Analysis System Alere Afinion™ Analyzer Alere™ Home Monitoring
Acute Care Portfolio
11
Alere™ i Alere Triage® System epoc® System 3rd Party POCT
RALS® Data Management System
Leading Solutions. One Partner
Chronic Care Management in Multiple Settings
12
Solutions for:
• Physician practices
• Retail settings
• Home
Early intervention at the point of care,
with ease of use and accessible cost
900+ MinuteClinics® (CVS Health)
have adopted LDX® and Afinion™
systems
Alere Afinion™ AnalyzerAlere Cholestech LDX®
Alere INRatio® 2 NycoCard™
Strategy:Strategies:
Toxicology: Driving Growth
13
Segments:
Employer
Government
Strategies:
Segments:
Pain Lab
Hospital
Segments:
OEM
Reference Lab
Full Solutions
Innovation (Global, Dx Testing)
Stabilize in Pain
Regain Hospital share with new
Triage® Tox product
Launch 8-10 new reagents to
enter untapped markets
Core
Integrated eReader® Triage® Clinical Panel Reagents
Clinical Trade
Comprehensive Toxicology Portfolio
14
Toxicology Products Specialty Lab Services Program Management
25 reagents
32 rapid tests
Small instruments
83 drugs
Urine, saliva, hair
Global Reach
4,000 collection sites
75% ‘e-enabled’
Exclusive e-reader
Integrated
eReader®
Electronic Drug Test
Management
e-Enabled Global Collection NetworkReagents
Rapids
Triage®
Clinical Panel Complex
AnalysisLab
Screening
Mobile Meters
Historical Revenue
$0.00
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
$3,000.00
$Millions
2010 2011 2012 2013 2014
$1,686.7
$1,946.2
$2,394.4
$2,616.4 $2,588.7
Revenue excludes Alere Health entities sold to Optum in January 2015
2015 Organic Growth
Growth to
accelerate
as year
progresses
Key growth drivers
■ International sales (China, India, Africa,
Latin America)
■ epoc® availability
■ Afinion™
■ Alere™ i (Flu A/B, Strep A)
■ HIV (Determine™ Combo, CD4, Alere™ q)
■ Core Toxicology
■ Toxicology Reagents
Aggressively Paying Down Debt
Q4 2014 Q4 2014
Post Divestitures
Q1 2013
$3.53B$3.35B
$2.77B
18
Note: Figures represent net debt.
Divestiture Initiatives
19(1) EBITDA amounts include equity income earned on 50% interest in SPD and 49% interest in Techlab.
Entity Description
BBI
Wampole/Techlab
SPD
Clinical reagents
Clinical reagents
50% JV with P&G, Women’s Health
Collectively,
businesses
contributed
$184M revenue,
$58.6M EBITDA
in 2014(1)
2015 Revenue and EPS Guidance(As of May 29, 2015)
Revenue
Adjusted
Diluted EPS
$2.5B - $2.6B
$2.40 - $2.50*
* Adjusted diluted EPS excludes restructuring charges, amortization and other items of a similar nature to those excluded in prior
periods. For a summary of adjustments to earnings in 2014, see http://www.alere.com/us/en/about/investor-relations/events.html.
First Quarter 2015 Results
* Please visit http://www.alere.com/ww/en/investor-relations/events.html to view our Q1-15 Press Financials which
contain detailed reconciliations of the non-GAAP financial measures under GAAP.
($ millions, except EPS) GAAP Non-GAAP
Net Revenue $608.2 $608.4
Gross Margin % 48.0 50.7
Total OpEx % 43.5 31.8
R&D % 4.6 4.3
SG&A % 33.1 27.4
Income (Loss) –
Cont. Operations
$(12.9) $45.1
Diluted EPS $(0.15) $0.53
* Please visit: http://www.alere.com/ww/en/investor-relations/events.html to view our Q1-15 Press Financials which contain detailed
reconciliations of the non-GAAP financial measures under GAAP.
Building on Our Momentum
■ Grow at market (>5%)
■ Focus resources on
outpatient
■ Enter MDx
■ International markets
■ Launch new products
■ Double TAM to $17B
by 2018
Growth
■ Rapidly populate existing
platforms
■ Enhance instruments
■ Invest in MDx
■ Quality culture
■ Improve time to market
Innovation
■ OpEx discipline
■ New products drive margin
improvement
■ Global procurement
■ Manufacturing:
- Low cost regions
- Automation/Lean
- Footprint reduction
■ Restructure debt
■ Tax planning
Operating Leverage