MOSAIQ™ BY QUOTIENT - Jefferies · 2019. 6. 13. · Deep dive into seven opportunities Ability to...

MOSAIQ™BY QUOTIENT

Chris Lindop, CFO

June 4th - 7th 2019

Jefferies 2019 Healthcare Conference

Safe Harbor Statement

June 2019The MosaiQ™ system is now commercially available in Europe. 2

This presentation contains forward-looking statements within the meaning of Section

27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act

of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-

looking statements include statements regarding our expectations of continued growth,

the development, regulatory approval, commercialization, and impact of MosaiQ and

other new products (including our current expectations regarding the timing of MosaiQ

project milestones) and forecasts of the demand for MosaiQ Microarrays and our

expected sources of funding. Such statements are based on current assumptions that

involve risks and uncertainties that could cause actual outcomes and results to

differ materially.

These risks and uncertainties, many of which are beyond our control, include delays

or denials of regulatory approvals or clearances for products or applications;

market acceptance of our products; the impact of competition; the impact of facility

expansions and expanded product development, clinical, sales and marketing

activities on operating expenses; delays or other unforeseen problems with respect

to manufacturing, product development or field trial studies; adverse results in

connection with any ongoing or future legal proceeding; continued or worsening

adverse conditions in the general domestic and global economic markets; as well as

the other risks set forth in the company's filings with the Securities and Exchange

Commission (“SEC”). Investors are cautioned not to place undue reliance on these

forward-looking statements, which speak only as of the date hereof. Quotient

disclaims any obligation to update these forward-looking statements.

The Quotient logo and MosaiQ are registered trademarks or trademarks of Quotient

Limited and its subsidiaries in various jurisdictions. Any images, schematics or other

graphic or pictorial representations contained herein, including those representing

the MosaiQ™ Instrument or Microarrays, are for illustrative purposes only. Those

representations may change and may not accurately represent final Quotient products

or services.

This presentation contains statistics and other data that in some cases have been

obtained or compiled from information made available by third parties. Quotient makes

no representation or warranty, expressed or implied, with respect to the accuracy,

reasonableness or completeness of such information.

A shelf registration statement relating to the ordinary shares was filed with the SEC

and is effective. We will also file a prospectus supplement with the Sec for the

offering to which this communication relates. Before you invest, you should read the

prospectus in that registration statement, the prospectus supplement, and other

documents the issuer has filed with the SEC for more complete information about the

issuer and this offering. You may get these documents for free by visiting EDGAR

on the SEC website at www.sec.gov. Alternatively, the issuer, the underwriters, or

any dealer participating in the offering will arrange to send you the prospectus if you

request it by contacting Jefferies LLC, Attention: Equity Syndicate Prospectus

Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by telephone at

(877) 547-6340 or by email at [email protected]; or Cowen

and Company, LLC, by mail at Cowen and Company, LLC, c/o Broadridge Financial

Services, 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus

Department, or by telephone at (631) 274-2806.

Quotient

Eysins, Switzerland

Global headquarters & center of competence for MosaiQ microarray manufacturing

Edinburgh, United Kingdom

Center of competence for Alba reagent business and

product development for both reagent and MosaiQ microarray development

Newtown, Pennsylvania, USA

US Commercial base

History

1990: Scottish National Blood Services creates National Reagents Unit

1998: Diagnostics Scotland (later renamed Alba Bioscience)

created from merger of NRU and Scottish Antibody Production Unit

2007: Quotient founded and acquired Alba Bioscience

2014: Quotient Suisse SA formed & Quotient IPO on Nasdaq

2018: 72 reagents products CE marked and 63 FDA licensed/cleared

MosaiQ factory ISO certified and instrument CE marked

2019: Obtained CE mark for first microarray

Over 30 years’ heritage in transfusion Dx



Milestones

June 2018 ✓

– Successful clinical trials (Initial IH)

– Senior notes issuance completed

September 2018 ✓

– EU submission of Initial IH

– MosaiQ instrument CE marked

October 2018 ✓

– Allan Robb Campus certified ISO 13485 under MDSAP (EU)

– Full FDA licensure (US)

December 2018 ✓

– Senior Notes restructured

– Raised $65m of new equity capital

– Eysins facility ISO 13485 certified

– V&V for initial SDS Microarray completed

January 2019 ✓

– Consolidation on Allan Robb Campus completed

– Publication of successful Expanded IH data

– Initial SDS field trial commenced

April 2019 ✓

– Initial SDS EU field trial results published

– Obtained CE mark for first microarray

June 2019 5

First microarray CE markedReady to launch MosaiQ in Europe

✓ Obtained CE mark for

initial microarray in

April 2019

The MosaiQ™ system is not yet commercially available or approved by any government agency.The MosaiQ™ system is now commercially available in Europe.

Transfusion Dx marketAttractive $3.4 billion* market growing low single digit

The MosaiQ™ system is now commercially available in Europe.

*Source: Estimate based on BCC Research, The Global Blood Industry, March 2015

Donor Testing 2/3

– Concentrated customer base

– High test volume per customer

Patient Testing 1/3

– Fragmented customer base

– Low test volume per customer

SDS: $875m

MDS: $1,100m

IH: $325m

IH: $1,100m

June 2019 6

Transfusion Dx playersFragmented market with many highly specialized players


IH MDS

Source: Independent global consulting analysis commissioned

by Quotient and Quotient’s own internal analysis

SDS

Transfusion Dx playersMosaiQ has the potential to cover all with one technology


MDS

SDS

Source: Independent global consulting analysis commissioned

by Quotient and Quotient’s own internal analysis

IH

MosaiQ value proposition1) One technology covering all testing needs


Serological

Disease

Screening

Antibody

Screen/ID

Molecular Disease

Screening

Manual

Testing

Blood

grouping

MosaiQ value proposition1) One technology covering all testing needs


Manual Testing

MDSExpanded SDS

SDS (CMV & Syphilis)

Blood grouping

MDSSDS

Expanded IH & initial SDS

Blood grouping only

MosaiQ value proposition2) Automation helps to address shortage of qualified staff

Sources: Number of tests based on Genetic Testing Registry Data in National Center for Biotechnology Information [NCBI], https://www.ncbi.nlm.nih.gov/gtr/

Workforce calculation based on total number of Medical and Clinical Laboratory Technologists and Technicians jobs (Bureau of Labor Statistics [BLS], 2018)

Source: Mounting shortage of medical lab techs hurts most in rural Alberta, expert says 4 April 2017

.


300000

315000

330000

345000

360000

375000

10000

20000

30000

40000

50000

60000

2013 2014 2015 2016 2017

Nu

mb

er

of

tes

ts

Wo

rkfo

rce

[…] Canada’s aging population

is creating an increased demand

for lab tests, including blood

and DNA tests.

[…]. But with too few graduates

to fill the positions opening as older

workers retire in the coming years, the

problem is going to get worse,

[…] According to CSMLS, almost

50 per cent of its members

will retire over the next 10 years.

MosaiQ value proposition3) Better workflow leads to better cost position addressing budget constraints


Total costs of ownership

Current practice

Direct testing costs

Non-direct testing costs

MosaiQ


Better cost position


MosaiQ value proposition4) Comprehensively characterized blood is a better and safer product


Standard characterised

bag of blood

Comprehensively characterized

bag of blood

*Throughput and footprint based on publicly available data and targeted MosaiQ performance


MosaiQ 125

PK 7300

Erytra

Vision MAX

IH 1000

Neo Iris

2,875

2,400

800

690

720

N/A

1,863

1,491

1,039

527

488

N/A

MosaiQ value proposition5) Highest throughput and productivity per m²

Company & Instrument Throughput (Tests/h) Productivity ((Tests/h)/m2)

Expanded IH




Company & Instrument

MosaiQ 125

PRISMnEXT

PK 7300

Cobas e801

Vitros 3600

Architect i400SR

Throughput (Tests/h) Productivity ((Tests/h)/m2)

1,125

960

600

300

189

400

729

490

370

178

100

98

Expanded SDS




Company & Instrument

MosaiQ 125

PRISMnEXT

PK 7300

Throughput (Tests/h) Productivity ((Tests/h)/m2)

2,000

800

960

1,296

490

490

Expanded IH + Expanded SDS

Erytra

PRISMnEXT

Neo Iris

Portfolio roadmapBroad pipeline for transfusion Dx and beyond


Transforming transfusion diagnostics and beyond Potential in immunomicroarray and MDx

Source: Independent global consulting analysis commissioned by Quotient

The MosaiQ™ system is now commercially available in Europe.

Value propositionMosaiQ

Simplified workflow

Ability to combine test

modalities

High-throughput capabilities

Lower sample volume

requirements

Versatile chip printing and test mixing

Suited to immunomicro-array and MDx

Potential for reduced

costs

Highly automated and user friendly

Up to 132 probes per cartridge

(incl. controls)

Ability tohandle

differentliquid sample

types

MosaiQ offers a simple

and automated workflow

for high-throughput

immunomicroarray and

MDx tests

− One sample, many tests

− Consolidate multiple

testing platforms with

a single technology

− Simplified workflow /

cost savings

Application

Current focus on blood transfusion:

estimated $3.4bn market (in 2015)

MosaiQ has the potential to be used

more broadly within immunomicroarray

(IA) and molecular diagnostics (MDx)

IA and MDx:

– c.32% (IA) and c.10% (MDx) of IVD market

– among the fastest growing segments

– forecasted to reach c.$40bn by 2023

An independent consulting firm was engaged to identify opportunities in IVD beyond the transfusion space

June 2019 18

Numerous opportunities evaluatedSeven Dx areas identified with significant commercial potential and fit


Shortlist of opportunitiesPreliminary screenPotential opportunities

16 TAs relevant to

immunoassay and MDx

Within each TA, identified major

patient situations requiring

frequent laboratory testing to

identify testing opportunities

leveraging MosaiQ’s core

modalities (IA and MDx)

Triaged long list of opportunities

to exclude those less amenable

to the MosaiQ platform if:

− consisting of single tests

− involving very low volumes

− with low technical or

commercial feasibility*

− currently pursued by

MosaiQ or in partnerships

Identification of opportunities

Relevant therapeutic areas

Shortlisted opportunities based on:

− Commercial potential:

− market size of relevant segment

− level of addressable need

− Suitability to MosaiQ:

− suitability of testing modalities

− breadth of test menu

− extent of panel opportunities

56 potential opportunities

40 opportunities relevant

to MosaiQ platform Shortlist of 7 opportunities

across 5 TAs

Source: Independent global consulting analysis commissioned by Quotient

Deep dive into seven opportunitiesAbility to win: commercial attractiveness and technological fit


Therapeuticarea Opportunities

AllergyPresentation-specific allergy testing

and component testing panels

Infectious disease High-throughput diagnostic and monitoring panels

Reproduction and women’s health Pregnancy monitoring panels

Autoimmune disease

Disease-specific diagnosticpanels

Disease-specific monitoringpanels

Transplant medicine

Pre-transplant testing

Post-transplant recipient monitoring panel

Refined opportunities selected for in-depth analysis In-depth assessment of opportunities

Co

mm

erc

ial

att

racti

ven

ess

Co

mp

eti

tio

nA

bil

ity t

o w

in

Commercial size

Commercial feasibility

Key players

MosaiQ’s value

proposition and suitability

Requirements

for success

Development history


Manufacturing site and instrument completed, now focusing on content development

Manufacturing

Instrument Microarray

Ready for innovation and change

Experts’ points of view

June 2019The MosaiQ™ system is now commercially available in Europe.

Mr B Block

BCA

22

Increasing complexity

Multiple instruments

Inefficient workflow

Lack of innovation

Prof M Schmidt

German Red Cross

Dr P Williamson

CTS

Dr E Castro

Valencia, Spain

MosaiQ is designed to meet customers’ needs


300000

315000

330000

345000

360000

375000

10000

20000

30000

40000

50000

60000

2013 2014 2015 2016 2017

Nu

mb

er

of

tests

Wo

rkfo

rce

Innovation, consolidating testing, improving workflow, reducing complexity

MosaiQ


Better cost position


Preparing the market for adoption


Contacts 250

Accounts 125

Opportunities 75+

Countries represented 20

Hypercare sites

planned for 20198

Tenders in which we

plan to participate

in the next 12 months

15+

Customers engaged and identified


Preparing the market for adoption

World-class advisory board ✓

Clinical trial experience and plans ✓

Commercial organization ready ✓

High customer awareness ✓

Hypercare launch planned ✓

$404 million of capital invested in the last 7 years

Source of funds ($m) Use of funds ($m)

More than $102 million in available cash at end of fourth quarter

Equity, $386

Debt, $120

Capital & Equipment, $105

R&D MosaiQ Instrument, $25

R&D MosaiQ Microarray, $183

R&D Reagents, $14

Corporate Costs, $41

Debt Service, $37

Increase in cash resources, $102


Indicative reagent spend


Illustrative average reagent spend for expanded IH and SDS menu on a microarray equivalent basis

Current Reagent Spend per Donation North America EU

Immunohematological Testing $ 8.00 $ 6.00

Serological Disease Screening $ 12.00 $ 8.00

Molecular Disease Screening $ 15.00 $13.00

$ 8.00

Microarray dollar unit cost at 50% yield*


Fixed cost leverage and automation drives gross margins

10MM** 60MM

Depreciation Overhead Labor Material

*Note: Illustrative. Based on internal estimates and subject to significant uncertainties.

**MM = Microarray volumes

Profitability and cost at various microarray sales levels*


Operating leverage drives profitability

10MM 60MM

COGS Operating Expenses EBIT

Revenue, costs

and EBIT in $

10MM** 60MM

*Note: Illustrative. Based on internal estimates and subject to significant uncertainties.

**MM = Microarray volumes

Takeaways


– Consistent strategy underpinned by

strong financial position

– Menu expansion progressing well

– Ready to launch

QUOTIENT MANAGEMENT


Speaker bios

Franz Walt


Chief Executive Officer, Quotient

Franz Walt joined Quotient (NASDAQ:QTNT) as the company’s Chief

Executive Officer in March 2018. Quotient Limited is a commercial-

stage diagnostic company with an initial focus on blood grouping,

serological as well as molecular disease screening, based on its

proprietary MosaiQ™ technology platform.

Franz Walt brings 30 years of global experience in leadership roles at

two of the largest, most influential healthcare companies, Siemens

Healthineers and Roche, and as an expert advisor on the in-vitro

diagnostics industry to manufacturing companies and private equity

firms. His career has focused on business turnaround, above-market

growth, profitability improvement, innovation, strategic alliances,

quality, new product introduction and commercialization.

In December 2017, Mr Walt retired as President of Laboratory

Diagnostics for Siemens Healthineers. During his 23 years at Roche,

he held positions of increasing responsibility in pharma and

diagnostics, which includes CEO, Managing Director and President

roles, in various geographic regions for Roche Diagnostics, also

serving eight years as a member of the Roche Diagnostics Executive

Committee.

Mr Walt served as a board member of the AdvaMed DX industry

association, where he actively contributed to shape healthcare policy

in diagnostic testing to improve patient health. Mr Walt holds an MBA

from the City University of Bellevue (Washington).

Contact

[email protected]

D: +41 22 545 82 20

Quotient Suisse SA

Business Park Terre Bonne

Route de Crassier 13

1262 Eysins

Switzerland

mailto:[email protected]

Chris Lindop


Chief Financial Officer, Quotient

Chris Lindop joined Quotient (NASDAQ:QTNT) as the company’s

Chief Financial Officer in February 2017.

Mr Lindop has more than 15 years of experience in senior finance

leadership roles with public healthcare companies. He previously

worked as Chief Financial Officer of Haemonetics Corporation

(NYSE:HAE), a global leader in blood processing technology and as

Chief Financial Officer of Inverness Medical Innovations, Inc., a global

developer, manufacturer and marketer of medical diagnostic products.

In addition, Mr Lindop was a non-executive director of Parexel

International Corporation (NASDAQ: PRXL) from 2006, where

he was chairman of the audit and finance committee and a member

of the nominating and governance committee until its sale.

Previously, he served as an audit partner with the Boston office

of Ernst & Young LLP and with the Boston office of Arthur Andersen

LLP. He holds a BA in Business from the University of Strathclyde

(Scotland).

Contact

[email protected]

D: +41 22 545 52 26

C: +41 79 961 69 38

Quotient Suisse SA

Business Park Terre Bonne

Route de Crassier 13

1262 Eysins

Switzerland

mailto:[email protected]

MOSAIQ™BY QUOTIENT

Chris Lindop, CFO

June 4th - 7th 2019

Jefferies 2019 Healthcare Conference

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