June 2015

LD Micro Invitational 2015

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Company Overview

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The First SaaS Cloud-based dClinical Technology

and Services Provider1991

DTRK

5 US Offices, new ChicagoStrategic Partner in Pan Asia

Pre-clinical, Phase I – III, Late Stage Drug and Device Studies - Over 25,000 users trained – 1.5TB data stored

Engaged 100s of clients in 1000s of trials, including 5 of the top 10 Pharma and 3 of the top 10 Biotech Companies

Founded

Ticker

Clients

Scope

Locations

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Management Team Led by Healthcare Executives

Laurence P. Birch, CPA, CGMAChairman and CEO

Jennifer W. Mabe, CPA, CGMACFO

Bill CoatesVP Business Development and Strategy

Dr. Bill GluckVP Clinical Knowledge

Tim LyonsVP Software Dev and Operations

Varnesh SritharanVP Legal Affairs

Susan BishInterim VP Marketing

Walt TownsendSr. Director, Quality Assurance

John ClineVP Client Solutions

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Cloud Technology and Analytics

Unified dClinical™ Platform

Professional Project Teams

Clinical and Consulting Expertise

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► Why is inferior technology accepted?• Challenge the market status quo• There is a better way

► DATATRAK Unified Platform• Removes complexities inherent in

integrated solutions like Medidata, Oracle, Others

► Results?• Clarity from better reporting• Time savings• Reduced cost

Challenging the Industry

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Great Technology Means Less Need for Support

► 24/7 Global Support

► Staffed by DATATRAK team members• Team of 3 Experts• We don’t need

more!

► 95% of calls are administrative• Access resets

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Academic Institutions

Partial Customer ListingMedical DevicesCROs

Strategic Resellers

Biopharmaceutical

Technology Partners

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Financial OverviewUpward Trends in Backlog -Highest Backlog & New Contracts in history

Strong Balance Sheet - No debt except for trade payables. Lower Debt-to-Asset than competitors - Positive Working Capital - Lowest DSO in peer group – strong cash management

Diversity & Stability- Continued new client acquisition - No single client represents even 10% of Revenue

Steady Growth - 2.6 Book-to-Bill Ratio

Industry Leading Gross Margins - 77% - skilled deployment of resources coupled with strength of Unified Platform 2009 2010 2011 2012 2013 2014

$0

$5

$10

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$25

$30

Revenue Backlog

(mill

ions)

DATATRAK Confidential

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Market Overview

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Total Addressable Market

Clinical Development Spend

$85B

Life Sciences IT

Spend $40B

dClinical Solutions Spend

$3B

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Growth of dClinical Market

►CAGR of 13.5% through 2018

• $5 Billion Market Size in 2018

►Growth fueled by: • Record drug approvals in 2014 (41)• Industry’s focus on rare diseases,

biosimilars and immunotherapies• Biotech IPOs

*dClinical Solutions expected to grow at a CAGR of 13.5% to reach $5 billion by 2018

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The Balancing Act

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The key challenge for drug sponsors, policy

makers and payers is to balance the need for new innovative medicines with the equally pressing need

to bring health care spending under control.

- Tufts CSDD Director Kenneth Kaitin

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Rising cost of drug development

Increasing length of time to market

Shrinking patent shelf life

$1.4 B

13 years

4 of 17 years to

achieve ROI

The Up Hill Battle Our Customers Face

Source: Tufts Center For Study of Drug Development 2014

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Pervasive Problems in Data Management

► Delayed Insights to Make Informed Decisions• Long wait times for reporting• Outsourced with long wait times

of days - weeks

► Time consuming trial management• Complex mid-study changes • Systems that are difficult to

learn and use

► Resulting in increased time and cost to complete research

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dClinical: Next Generation Solution

► Cloud, Mobile, Big Data, Analytics, Social, Wearable Devices• More data from more sources• Analyzing the total data set

across all sources to maximize insight

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How the Unified dClinical™ PlatformHelps Customers

► Simplifies dClincial process• Removes complexities

considered status quo

► Saves valuable time• Reduces study cost• Reduces patent shelf burn• Increase potential for drug ROI

► Results in faster market introduction • Needed treatments to

waiting patients faster

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Unified vs. Integrated Systems

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• ONE Database• ONE Source For Real-Time

Data• ONE Cross-Study Reporting

Tool• ONE Digital Platform• ONE Training for All

Solutions

• Multiple Friction Points• Increased Validation• Multiple Sources of

Data• Multiple Interfaces• Increased Training

Needs• Delayed Data Feeds

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Growth Strategy

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Strategy for Growth

Challenge Market Status Quo - Position Technology Gold Standard

Product Roadmap - UX CTMS 360™, UX dPRO (future) , UX Wearables (future)

Grow Services Revenue- Consulting and Support Services (DCCS)- Leverage CRO Relationships

Growth Channels- CRO, Sponsors, Device, Biotech, Strategic Partners in Asia Pacific- TBT EA

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Targeted Growth Areas

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► Japan• NTT Data & ClinCloud are strategic partners in Japan• Clients include to pharma and research centers• Over 100 trials deployed• Focus on PMS market – est. $200M

► China• NTT Data is strategic partner in China• DATATRAK working with multiple CROs• Clinical Trial Market is growing and expected to reach $48 billion by

2016

Asia Pacific StrategyJapan

China

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CTMS

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CTMS: A Definition

► A clinical trial management system (CTMS) is a software solution used by biotech, pharma, device, and CRO entities to manage the business of research. • Budget Manager• Personnel Manager• Vendor Manager• Sites Manager• Holistic Clinical Data Manager

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Closer Look at 2017 CTMS Market

Fragmented Market Share

PAREXEL - 24%

Oracle - 19%

Medidata - 14%

Bioclinica - 7%

All others - 36%

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► Simplifying the business of research• Leverages the power of the unified dClinical™ platform• Active management of investment with instant insight

to status of all trials on the platform – Payments, Staffing, Visits, and more

• Regulatory reporting streamlined

► 1% market share is $15 Million

► Launching June 2015

► Elegantly simple, remarkably sophisticated

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Active Trial Management Means Better Investment Management

► CTMS market ripe for unified benefits • Need for online real-time data

access• 360 Data Views• Execs can actively manage trial

investment• Information for investors and

financiers readily available

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Financial Performance

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Historical vs. Current Metrics

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014$0

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$10

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$-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$15.7

$17.7

$10.6

$8.8

$6.9 $7.4 $7.9

$9.7$10.9 $11.0

$20.3

$12.2$13.0

$11.4

$9.5

$11.2 $11.6

$17.8

$20.9

$26.0

Cash Revenue Backlog Share Price

Share

Pri

ce n

Dollars

($ in

mill

ion

s)

Highest new contracts in history led to highest

Backlog in historyImproved Book-to-Bill

ratio due to large, long-term Enterprise deals =

Stability

Flat share price =

opportunity for value

creation

Contin

ued

Growth

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Public Company Comparables

  Company

Closing Price Market Enterpris

eBusiness Enterprise

Value/

5/28/2015

Value (MM)

Value (MM) Revenue EBITDA

Medidata Solutions, Inc. $57.24 $3,159.36 $3,105.55 8.9x 78.6x

Merge Healthcare Incorporated $4.62 $446.81 $701.83 3.3x 19.4x

OmniComm Systems Inc. $0.20 $18.44 $42.79 2.5x NM

Veeva Systems Inc. $29.00 $3,817.40 $3,388.89 10.1x 41.6x

Minimum $0.20 $18.44 $42.79 2.5x <0x

Mean $22.77 $1,860.50 $1,809.77 6.2x 46.5x

Median $16.81 $1803.09 $1903.69 6.1x 41.6x

Maximum $57.24 $3,817.40 $3,388.89 10.1x 78.6x

DATATRAK $7.01 $8.96 $6.64 0.6x NMAll data sourced from S&P Cap IQ or calculated by Alpha IR Group

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5 Reasons to Invest

Unparalleled Technology Platform - Unified database is pure integration

Leading Growth Indicators - Backlog, new contract sales, enterprise agreements all increasing

Balance Sheet Dramatically Improved- No long-term debt, strong cash balance

Growth Initiatives in Place- Mktg programs successful, new CRO relationships, growth in APAC

Share Price does not Reflect Fundamental Value

#1

#2

#3

#4

#5

from Concept to Cure

with DATATRAK ONE

DATATRAK InternationalCleveland, Ohio Bryan, Texas Cary, North CarolinaChicago, IllinoisPlymouth, Minnesota

+1.440.443.0082www.datatrak.com

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