Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - LUMINEX CORP | a2018jpmpressreleaseexhibi.htm |
| 8-K - 8-K - LUMINEX CORP | form8-k1818.htm |
Investor Presentation
Nachum “Homi” Shamir
President and Chief Executive Officer
January 11, 2018
36th Annual
J.P. Morgan
Healthcare Conference
© Copyright 2017 Luminex Corporation 2
Safe Harbor Statement
Certain statements made during the course of this presentation may not be purely historical and consequently may be forward looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements made regarding:
our Licensed Technologies Group model and the ability of our licensees and installed base to drive future growth; the ability of our technology to
enhance productivity and efficiency; our financial position and long-term revenue growth; our ability to integrate our acquisition of Nanosphere
Inc.; our molecular diagnostic business model, the markets we are targeting, market segmentation, expected growth of such markets, and the
ability of our products to address those markets; sales of our products, their technical capabilities, and the anticipated market size and
acceptance, demand and regulatory environment and approvals therefor; our direct sales efforts; our system placements; our system and assay
product pipeline and anticipated timelines for regulatory approvals and market releases, including for ARIES® and VERIGENE® instrumentation
and assays; market opportunity for ARIES® and VERIGENE; functionality and benefits of ARIES® and VERIGENE and competitive position;
reimbursement trends; our ability to drive growth through investment in R&D and next generation systems and focus on operating leverage and
managing operating costs; our long term financial targets; our key steps and strategies for growth; our strategic outlook and growth plan for our
business for 2018 and beyond; operational trends, including those related to sales of systems, assays, consumables, and royalty revenues;
competitive threats and products offered by other companies; our business outlook, financial targets and projections about revenues, cash flow,
system shipments, expenses and market conditions, and their anticipated impact on Luminex for 2018 and beyond; and, any statements of the
plans, strategies and objectives of management for future operations.
These forward looking statements speak only as of the date hereof and are based on our current beliefs and expectations and are subject to
known or unknown risks and uncertainties some of which are beyond our control that could cause actual results or plans to differ materially and
adversely from those anticipated in the forward looking statements. Factors that could cause or contribute to such differences are detailed in
our annual, quarterly, or other filings with the Securities and Exchange Commission. We undertake no obligation to update these forward
looking statements.
Also, certain non-GAAP financial measures as defined by SEC Regulation G, may be covered in this presentation. To the extent that any non-
GAAP financial measures are covered, a presentation of and reconciliation to the most directly comparable GAAP financial measures will be
included in this presentation may be available on our website at www.luminexcorp.com in accordance with Regulation G.
© Copyright 2017 Luminex Corporation 3
Company at a Glance
Empowering labs to obtain reliable, timely, and
actionable answers; ultimately advancing health
© Copyright 2017 Luminex Corporation 4
Company at a Glance
Razor / Razorblade;
Expanding Footprint:
Approaching 15,000
systems sold to date
Expanding MDx portfolio
and 100+ sales and
support personnel
Serve multi-billion dollar
markets in life science
research and clinical
diagnostics
70+ partners investing
in our technology
Strong profit and cash flow;
Initiated quarterly cash
dividend in 2017
© Copyright 2017 Luminex Corporation 5
$238
$271
$306
2015 2016 2017
Finished 2017 with Momentum in Molecular Testing
Sample to Answer Revenue ($M)
Continues Strong Growth Trajectory*
NOTE: Pro-forma
85 ARIES® and
VERIGENE® Contracted
Systems in 4Q17;
Up from 60+ Contracted
Systems in 3Q17
$21
$32
$47
2015 2016 2017
48%
Total Annual Revenue ($M)
13%
Generated $31M
in FCF in 2017;
Ended 2017 with
$124M in Cash and
Investments
© Copyright 2017 Luminex Corporation 6
Luminex Corporation: A Diversified Business
LICENSED TECHNOLOGIES GROUP (LTG)
Strong Profitability & Cash Flow
MOLECULAR DIAGNOSTICS GROUP (MDx)
Sample to Answer to Drive Growth Acceleration
2017
LTG - Related
Revenue
$142M
High Margin
Revenue accounts
for
$91M
of LTG-Related
Revenue
2017
MDx Revenue
$162M
LICENSED
TECHNOLOGIES
GROUP
MDx
SAMPLE TO
ANSWER
NOTE: Total company IP portfolio. Also note certain “other” revenue items not included in revenue figures
2017
MDx Revenue
Growth
+25%
Expansion of
automated sample
to answer assay
menu
LTG
Annual Growth
Expectations
Mid-Single
Digits
Active Sample to
Answer
Customers
425+
Strong
IP Portfolio
550+
Patents*
Licensed Technologies Group
© Copyright 2017 Luminex Corporation 8
Licensed Technologies Group: Overview
Royalty
System
Consumable
LTG-Related Revenue, by Product:
Other
13%
% of Total LTG-Related Revenue, by Market:
LTG:
~45%
of total
revenue
~40%
~40%
~20%
Transplant
Diagnostics
Immuno-dx
Protein
Research
…Luminex
bead-based
platforms are an
open technology
and the applications
are extremely
broad. There are
uses in all fields
from academia to
the clinic…”
– Director,
Academic Core Facility
33%
31%
23%
Total Cumulative Systems Sold to Date*:
Mid-Single
Digit
Growth
Long-Term
8,700
10,700
12,700
14,900
2011 2013 2015 2017
NOTE: Our partners purchase and distribute the majority of the total number of multiplexing analyzers sold to date
© Copyright 2017 Luminex Corporation 9
End-User Sales (Partner Reported)*
$0
$50
$100
$150
$200
$250
$300
'02/'03 '04/'05 '06/'07 '08/'09 '10/'11 '12/'13 '14/'15 '16/'17
LMNX LTG Revenue: Total*
$0
$200
$400
$600
$800
$1,000
$1,200
'02/'03 '04/'05 '06/'07 '08/'09 '10/'11 '12/'13 '14/'15 '16/'17
$0
$20
$40
$60
$80
$100
'02/'03 '04/'05 '06/'07 '08/'09 '10/'11 '12/'13 '14/'15 '16/'17
$0
$20
$40
$60
$80
$100
$120
'02/'03 '04/'05 '06/'07 '08/'09 '10/'11 '12/'13 '14/'15 '16/'17
LMNX LTG Revenue: Consumables* LMNX LTG Revenue: Royalties*
Licensed Technologies Group: High Margin Revenue Trends
NOTE: $ in millions, 2-year totals
© Copyright 2017 Luminex Corporation 10
Licensed Technologies Group: Key Takeaways
• 70+ partners investing in our
technology; addressing large
markets
• Long-term contractual partnerships
• Stable growth; highly profitable
• Large and growing system base
• New prototype in early stages
Molecular Diagnostics:
Sample to Answer
© Copyright 2017 Luminex Corporation 12
Entire VERIGENE® and ARIES®
Infectious Disease test menu driving growth
$7M
$10M
$13M
$18M
4Q15 4Q16 4Q17 4Q18E
Quarterly Sample to Answer
MDx Revenue*
40%
220+
VERIGENE® and
ARIES® Systems
placed under
contract in 2017
NOTE: Approximate dollar amounts
On Track to Achieve ~$100 Million Run-Rate Target by YE19
© Copyright 2017 Luminex Corporation 13
Large Hospital (BF) BC,EP,RP $1M
Large Hospital (BF) EP $500K
IDN Hospital Grp (BF) BC, EP $500K
Large Hospital (Cult.) BC, EP RP $400K
Overview of S2A Active Customers
VERIGENE® platform continues
strong traction.
Blood Culture panels outpace
market growth. Enteric and RP Flex
panels gaining rapid traction.
ARIES® traction due to menu
expansion and anchor assays that
can drive placements.
C. Diff and MRSA to be
main drivers in 2018.
$95,000
Average Annual Revenue per Active Customer*
VERIGENE® ARIES®
$45,000
Average Annual Revenue per Active Customer*
425+
Active
Customers
NOTE: Active Customer = Purchases in rolling 12 month period, figures approximate
Recent Wins:
VERIGENE®
ARIES®
Closed Deal Competitive Takeaway
Reference Lab (BF) Bordetella $500K
IDN Hospital Grp (MB) HSV, ASRs $400K
Pathology Lab GBS $250K
Reference Lab (LDT) Bordetella $200K
Large Hospital (CPD) GBS, HSV $200K
Large Hospital (DS) FLU $200K
Customer Type Test Type
Annual
Revenue
© Copyright 2017 Luminex Corporation 14
The Right Solution for Customers Needs
SYSTEM THROUGHPUT
M
U
L
T
IP
L
E
X
IN
G
C
A
P
A
B
IL
IT
IE
S
MAGPIX®
Launched 2010
Luminex® 200™
Launched 2005
ARIES®
Launched 2015
VERIGENE®
Acquired 2016
Sample to Answer
Non-Automated
VERIGENE® II
Target Launch: Early 2019
© Copyright 2017 Luminex Corporation 15
Targeted & Syndromic Testing Solutions
HSV 1&2 Flu/RSV GBS C. Difficile Norovirus GAS Bordetella Respiratory Panel GI Panel BCID Panel
Targeted Syndromic
Luminex is the only manufacturer providing Targeted & Syndromic solutions
Clinical Studies in 2018:
7
(4 ARIES® and 3 VERIGENE® II)
© Copyright 2017 Luminex Corporation 16
How We Win – Total Portfolio Selling
Breadth of Solutions Superior Economic Value The Result
• Platform Ease of
Use; Throughput
Options
• Breadth of Menu:
Targeted and
Syndromic Tests
• Lab Developed
Test Optionality
• LMNX Well Positioned
for Potential Shifting
Reimbursement
• Breadth/Flexibility of
Test Portfolio
• Flex Pricing Option
• Over 425
Customers and
Growing
• MDx Sample to
Answer revenue
$47 million in 2017;
Approach $100M by
YE19
Financial Overview and Summary
© Copyright 2017 Luminex Corporation 18
Ending 2017 With Strong Momentum; Well Positioned for 2018
$265M
Historical Annual Revenue ($M)
$290M - $295M
Luminex continues
to generate
significant cash
flow during 2017
$124M
2017 Cash and
Investments
$31M
2017
Free Cash
Flow
Sample to Answer
MDx revenue on
track to approach
$100M by end of
2019
2018 R&D spend to
reflect timing of
multiple ARIES®
and VERIGENE® II
clinical studies
$238
$271
$306
2015 2016 2017
13%
© Copyright 2017 Luminex Corporation 19
Financial Overview: Transformation of Our Business
$175 - $200M
$250 - $300M
60 - 65%
NOTE: Slide does not include “other” revenue; 2017 margins are approximate figures based on preliminary estimates subject to
adjustment during the closing process ; 5-year target does not include M&A activity
$425 - $500M
20 - 25%
2017 5-Year Target*
LTG-Related Revenue $142M
Molecular Diagnostics Revenue $162M
Total Revenue* $306M
Gross Margin** 64%
Operating Margin** 12%
© Copyright 2017 Luminex Corporation 20
Luminex Corporation: Investment Case Summary
Licensed Technologies
Group (LTG)
Molecular Diagnostics
Group (MDx)
Financial Strength
• Large and Growing System Base
• 70+ Partners Investing in Our Technology; Long-term
Contractual Partnerships; Addressing Large Markets
• Stable Growth; Highly Profitable
• Broad Product Offerings for Infectious Disease Testing
• Well Positioned in U.S. Reimbursement Landscape
• Sample to Answer MDx Platforms - a Key Growth Driver
• Razor + Blade Business Model
• Strong Cash Flow Supporting Growth Initiatives and
Shareholder Friendly Actions (Quarterly Cash Dividends)
• Active M&A search
© Copyright 2017 Luminex Corporation 21
Next Investor Event
Fourth Quarter and Full Year 2017 Financial Results to be
Released on February 12 after market close
Thank You