Kevin Hrusovsky Chairman & CEO January, 2018 Safe Harbor - - PowerPoint PPT Presentation

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Kevin Hrusovsky Chairman & CEO January, 2018 Safe Harbor - - PowerPoint PPT Presentation

Kevin Hrusovsky Chairman & CEO January, 2018 Safe Harbor Forward-Looking Statements This presentation and the accompanying oral commentary contain forward-looking statements that are based on our beliefs and assumptions and on


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Kevin Hrusovsky Chairman & CEO

January, 2018

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Safe Harbor

Forward-Looking Statements This presentation and the accompanying oral commentary contain “forward-looking” statements that are based on our beliefs and assumptions and

  • n information available to us as of the date of this presentation. Forward-looking statements include information

concerning our possible or assumed future results of operations, business strategies, development plans, regulatory activities, competitive position, potential growth

  • pportunities, addressable markets, use of proceeds and the effects of competition. Forward- looking statements include all statements that are not

historical facts and can be identified by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “enable”, “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “predict,” “project,” “potential,” “should,” “will,” or “would,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons why actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. The Company has filed with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement (including a prospectus) for the

  • ffering to which this presentation relates, but such registration statement has not been declared effective. Before you invest, you should read the

prospectus in that registration statement, including the Risk Factors set forth therein, and the documents incorporated by reference or filed as exhibits to the registration statement for more complete information about the Company and this offering. You may access these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the preliminary prospectus may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (866) 803-9204; Leerink Partners LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, by telephone at (800) 808-7525, ext. 6132 or by email atsyndicate@leerink.com; or Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Attn: Prospectus Department, or by calling (631) 274-2806 or by faxing (631) 254-7140.

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Marquis Management, Board and Investors

Kevin Hrusovsky Chairman & CEO Martin Madaus, PhD Chairman & CEO Ortho Clinical Diagnostics Douglas Cole, MD Managing Partner Flagship Pioneering Keith L. Crandell Co-Founder & Managing Director ARCH Venture John M. Connolly Senior Advisor Bain Capital Ventures David Walt, PhD Founder Quanterix & Illumina, Harvard Paul Meister Co-founder Liberty Lane Partners Marijn Dekkers, PhD Chairman, Unilever, General Electric BOD

Board

Value Creation – Strong Track Record

Kevin Hrusovsky

Chairman & CEO Mark Roskey, PhD

Commercial

David Duffy, PhD

CTO

Bruce Bal

Operations

Ernie Orticerio

CD & Finance

Elisabeth Colunio

HR

Joe Driscoll

CFO

Brian Keane

General Counsel

Management

Dan Sikkema, PhD

Oncology

Andreas Jermone, PhD

Neurology

  • IPO 7.5x’s over subscribed; $80 million in bank
  • Raised $150 million past three years
  • Rapid Success in Research: 0 - $23M Revenue
  • 2020 - Diagnostics: New Deals; 750 Trials, PPH Validation
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4 4

Disruptive Biomarker Technology Enabling Precision Health

Core Simoa T echnology

Multiple Target Markets

Research Diagnostics1 Clinical trials1 Precisionhealth1

Therapeutic Area Focus Scientific and Customer Validation Digital Sensitivity See Health and Disease Processes Earlier Less Invasive Sample Types All Relevant Biomarkers

vs.

Biopsy Blood draw Inflammation Infectious Disease Oncology

Analog Digital

Neurology DNA Proteins RNA

1 Subject to receipt of regulatory approvals or clearances which the company has not applied for to date.

Cardiology

Competition

Multiple Instrument Formats Possible

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Convergence of T echnology and Healthcare

digital analog digital biomarkers

Measuring Life’s Variables

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20,000

genes

100,000+ proteins

RNA

Molecules of Life; Genotype to Phenotype

Molecules of Life Environmental Factors Affect Health

Drugs Radiation Lifestyle Infections Diet Sleep Exercise Pollution Stress Concussions

Cancer Diabetes

~1975-1990’s ~2000-2013 ~2013-present pg/mL ng/mL fg/mL

ELISA ECL Quanterix

900x

sensitivity increase

Measuring What Could Not Be Seen Before

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INVASIVENESS

symptoms

Preventative Healthcare

Biopsy, spinal tap

  • r other

invasive procedures blood saliva urine

healthy I II III IV death STAGE OF DETECTION

sickness begins

biomarker concentration cancer neuro

sick, asymptomatic

cardio infectious disease

HEALTHCARE SICK CARE

biomarker concentration

GOAL Placement of disease categories is for illustration purposes only

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INVASIVENESS

sickness begins

sick, asymptomatic

symptoms

Preventative Healthcare

biopsy spinal tap blood saliva urine

healthy I II III IV death STAGE OF DETECTION

biomarker concentration

biomarker concentration

Current detection limit Current detection limit New detection limit New detection limit

HEALTHCARE

9.0 pg/ml* 0.01 pg/ml*

* Represents limit of detection for the leading commercially available IL-2 assay and SIMOA’s limit of detection

  • f IL-2 for illustrative purposes

SICK CARE

Quanterix

>100,000

Proteins expressed in the human body expressed by 20,000 coding human genes

~10,500

Secreted proteins in circulation in human blood

<1,300

Proteins consistently detected by conventional IA tech

~205

FDA-approved IA diagnostic tests

Today

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Illuminating the Continuum from Health to Disease

Oncology

Potential to be highly predictive of early stage cancer recurrence

Neuro

Potential for diagnosing Alzheimer’s dementia in line with current CSF biomarkers

InfectiousDisease

Significant potential to reduce the spread of infectious disease

Inflammation

TNF-α at LoD levels >100x below traditional IAs

20 pubs 36 markers 89 pubs 49 markers 75 pubs 95 markers

Sensitivity enables researchers to expand into diseases associated with previously undetectable proteins

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Unprecedented Protein Detection Sensitivity

1

Provider Protein

Innotest Ab 42 Innotest Tau Techne IL‐6 Techne TNF‐α ALPCO C‐peptide Techne IL‐10 Millipore INF‐α Genentech IL‐17A Roche/Siemens PSA Ortho p24 Techne IL-5

Normal clinical range (median) Leading ELISA LoD (2.5 SD) Quanterix LoD (2.5 SD)

LoD comparison

Concentration, pg/mL

Assay

Quanterix

Concentration, pg/mL

Average 3000x

Concentration, pg/ml

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WW COST

Oncology

$350B

DEATHS / YR

9MM

Neurology

$270B 18MM $6B

Cardiology

$470B

ID, Inflammation Other*

$140B

TOTALS:

$1.3T 7MM 15MM ~50MM $38B $9B

Applications

* Other includes validation related to inflammation, technology, immunology and others Source: Health Advances analysis, ASCO, NIH, Kaiser Family Foundation, Miller 2011 J Am Coll Cardiol, O’Donoghue 2014 Ann Intern Med, WHO

$25B

BIOMARKER MARKET

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Our Product Portfolio

Instruments Assay kits Services

HD-1 Analyzer - $175k list

  • Launched 2014
  • Fully-automated
  • 400 samples / shift
  • HD-X Trade in Q4’18

SR-X - $75k list

  • Launch 1H’18, Now Q1’18
  • Reader only
  • Academic, Int’l, Assay Dev’l
  • Multiplexing, smaller samples
  • Nucleic Acids w/o PCR

Consumables and Ab’s

  • 80 assays kits including

homebrew / multiplex

  • Proprietary disk with 24 arrays
  • 30+ new assays in 2018
  • Portable between instruments

In-house and field based

  • Sample testing and Assay Dev’l
  • Maintenance, warranties, training
  • CLIA Certification 2H’18
  • Drug Trials for efficacy, toxicity

and companion diagnostics

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SR-X Pre-Launch Traction

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Long Term (>3 yrs) Near Term (1-3 yrs) Immediate

Strategic Roadmap to $38B Market

*$8B Future Life Science research is inclusive of $3B Life Science Research Today, not net. Also includes pharma services and clinical trials. Note:IA= Immunoassay, IHC = immunohistochemistry, mass spec = mass spectrometry; MS = multiple sclerosis, PSA = prostate-specific antigen, TBI = traumatic brain injury. Source:Health Advances analysis.

Research Today

$3B

Pharma Services & Future Research

$8B*

Diagnostics and Health Screens

$30B

Risk/Reward

Quanterix today

$6B POC IA & Molecular $11B Core Lab IA $4B

Mammography MS Monitoring

$1B $2B $1B

PSA Monitoring TBI Monitoring Companion Diagnostics

$2B $1B

Alzheimer’s Diagnosis

$1B

Pancreatic Cancer Screening and Monitoring

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Pharma Services, LDT, CDx Reinvent drug development Research Discover and validate digital biomarkers IVD Diagnostics, LDT and Health Screens Disrupt healthcare

Global sales channel Menu expansion Benchtop SR-X - Revamped HD-X Phase I, II and III Drug Trials Diagnostics Partners Abbott and BioMerieux

$38B

$3B

Clia Lab, Menu

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Current Landscape Dominated by Few Companies

41% 13% 5% 3% 2% 1%

Other

15%

Manual

20%

*Immunoassay Research, including partners and excluding Diagnostic

IA Research market:

$1B

(7% CAGR)

*

Complementary: MASS SPECTROMETRY Indirect Competition: IMAGING

IA + Nucleic Acid Y/E 2016 Installed Base:

14,500

Nucleic Acid

$2B

+

Pharma Services

$2B

+

Future Expansion

$3B

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Rapid Growth with Compelling Consumable Pull-through

Three-year Growth

($ in millions)

Grew from 0 instruments Jan’14

72 121 53 98 185 58 126 180

2015 2016 2017 est.

Instruments Publications Markers

(cumulative)

2018 Milestones

  • Q1: Launch SR-X benchtop
  • Q4: Launch HD-X: Trade in
  • Expand menu by 30+ assays
  • Multiplexing, cost and sensitivity
  • Globalize and enter Pharma Services
  • CLIA certification and LDT licensing
  • Explore Point-of-Care relationships
  • Blood screening license – Top Dx Co
  • Bolster Ab engineering capability

176

$2.9 $4.4 $7.6

2015 2016 2017E

$12.2 $17.6

Revenue

$22.5- $22.9

= Consumables

Q4 represents a preliminary, unaudited est. of financial

  • information. We have not finalized the audit of our results of
  • perations for the 3 months and year ended 12/31/17, which

may identify items requiring adjustment to these unaudited financial results.

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  • Cash $80M ($9M debt) - Sufficient to crossover
  • 65%+ GM at scale: C 75%+, I 55%, S 65%
  • M&A can accelerate pace to scale
  • Head count today 125, projected at 150 at ’18 year end

‒ 55 Commercial, 35 R&D/Eng, 25 Mfg / Operations

Business Profile

NA 61% Asia 9% Eur 30%

Instruments 34% Assays 40% Accelerator 26% Pharma/ Biotech/CRO 61% Academia 39% Oncology 16% Neurology 72% Cardiology 5% Infect. Disease 6%

Product Revenue Allocation

(2017 estimate)

$1.6 $3.1 $4.9

2015 2016 2017E

Accelerator Revenue

(millions)

Q4 represents a preliminary, unaudited est. of financial information. We have not finalized the audit of our results of operations for the 3 months and year ended 12/31/17, which may identify items requiring adjustment to these unaudited financial results.

  • Promotion cost center to 65% g.m. growth catalyst business
  • Mood Study, pharma utilization, drug trials pipeline
  • CLIA certification for pharma services enables LDT entry
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Biomarkers Clinical Utility is Transforming Drug Development

Cancer, auto immune and inflammation and neurology

75 300 750 500

2015 2016 2017 Pipeline

Cumulative Trials using QTRX: 2 20

2015 2017

CRO’s using QTRX 7

2015 2017

Trials at QTRX

26.1% 19.1% 15.3% 15.1% 11.1% 9.6% 8.4% 6.6% 5.1%

210%

increase in probability of drug approval

4th Leading Cause of Death in USA

25% 30% 47% 48% 57% 60% 60% 60% 62%

Efficacy

Depression Schizophrenia Cardiac arrhythmia Asthma Diabetes Osteoporosis Hepatitis C AD Cancer

Toxicity

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Blue Chip Customers

Research Institutions Biopharma Other

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Rapid Adoption with Early Evidence of High Utilization

# of Instruments Consumable avg. $/yr./instr.1 $117,000 70% Neuro $117,000 70% Infl. & Onco. $200,000 95% Homebrew Applications # of Instruments Consumable avg. $/yr./instr.1 $175,000 95% Homebrew $135,000 70% Neuro $100,000 30% Homebrew Applications

  • 1. Based on revenue through June 30, 2017, annualized for full year

Today avg. is $52K per instr, up from $40K Homebrew revenue per test is 1/3 kits

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Rapid growth of Clinical Trials in Oncology and Auto Immune

Oncology: Immunotherapy Autoimmune Diseases Cardiovascular Disease Type 2 Diabetes Pulmonary Neurological

“75% of 500+ clinical trials require Quanterix data w/ Luminex”

Ralph McDade, CEO RBM Myriad Genetics (45 Luminex Readers SR-X) Predictive use of efficacy & safety biomarkers

Candidates attrition & refinement Dose selection, PK/PD modeling Efficacy & safety “valid” & putative markers PoM, protocol design Patient stratification Other indications Market differentiation Post approval surveillance

IL-15 IL-17A IL-17f IL-18 IL-23 IFN-α IFN-β CP3B IFN-γ IP-10 MCP-1 TGF-α TNF-α TNF-β TRAIL Homebrew Eotaxin GM-CSF IL-1α IL-1β IL-2 IL-4 IL-5 IL-6 IL-7 IL-8 IL-10 IL-12p40 IL-12p70 IL-13 CP3A Variaplex

Ultrasensitive Digital Biomarkers 20 Inst in Pharma Services Companion Dx

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2011

2012

2013

2014 2015

2016

2017

Sports/military/concussion TBI Alzheimer's Disease Multiple sclerosis Neurodegeneration (other) Other

JAMA Neurol. 2014;71(6):684-692.

Tau predicts return-to- play following concussion Tau

28 concussed hockey players

AUC 0.91

JAMA Neurol. 2015; Aug 3

Tau (chronic)

70 ex-deployed military personnel

Tau predicts TBI history, and long-term symptoms

(25) (36)

JAMA Neurol 2017; May 1

NF-L

570 patients & HCs cross-sectional

Plasma NF-L exhibits high diagnostic accuracy for Alzheimer’s disease (AUC 0.87)

Neurology Publications – Catalyze Disruption

2x winner

“Concussion”

Starring Will Smith & Alec Baldwin

J Neurotraum Neurol. 2016; Oct 1

NF-L

19 collegiate players (TCU)

NF-L reflects extent of football hit exposure

  • ver a season

Neurol Neuroinfl 2016; Aug 2

NF-L

12 patients, longitudinal study

NF-L reflects MS progression

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Multiple sclerosis Alzheimer's Disease Frontotemporal Dementia Amyotrophic Lateral Sclerosis (ALS) Delirium Traumatic brain injury Concussion Chronic Traumatic Encephalopathy (CTE) Parkinson’s disease Creutzfeldt-Jakob (prion) disease Huntington’s disease Guillain-Barre syndrome Brain hypoxia Stroke Subarachnoid hemorrhage

Neurology Opportunity

Digital biomarkers impacting all areas of brain health:

Tau P-Tau Amyloid β 40 Amyloid β 42 Nf-L BDNF GFAP UCH-L1 NSE TNFa aSynuclein TDP43 Inflammatory Cytokines Multiplex combinations

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Neurology Customers

1.9 2.8 4.3

2015 2016 2017E

Instrument Sales ($) 1.6 1.9 4.8

2015 2016 2017E

Consumables Sales ($) 0.3 1.1 2.5

2015 2016 2017E

Accelerator Sales ($K) 17 35 48

2015 2016 2017E

Number of Instruments (units) 3 6 22

2015 2016 2017E

Consumable Markers Added 17 75 158

2015 2016 2017E

Accelerator Projects 14 41 85

2015 2016 2017E

Number of 3rd Party Pubs 1 3 8

2015 2016 2017E

Neuro Projects in Trials

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Neurology Customers PIPELINE

(inc. installed base)

1.9 2.8 4.3

2015 2016 2017E

Instrument Sales ($) 1.6 1.9 4.8

2015 2016 2017E

Consumables Sales ($) 0.3 1.1 2.5

2015 2016 2017E

Accelerator Sales ($K) 17 35 48

2015 2016 2017E

Number of Instruments (units) 3 6 22

2015 2016 2017E

Consumable Markers Added 17 75 158

2015 2016 2017E

Accelerator Projects 14 41 85

2015 2016 2017E

Number of 3rd Party Pubs 1 3 8

2015 2016 2017E

Neuro Projects in Trials

Note: 2017 figures are estimates

Q4 represents a preliminary, unaudited est. of financial information. We have not finalized the audit of our results of operations for the 3 months and year ended 12/31/17, which may identify items requiring adjustment to these unaudited financial results.

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“40% lower cost, 60% more accessible, and live 8 years longer productive lives.”

Kevin Hrusovsky Founder & Chair, Powering Precision Health Summit

606

attendees

54

luminary speakers

18

corporate sponsors Speakers from:

Harvard Medical, MD Anderson Cancer Center, Merck, Eli Lilly, NYU, UPenn, NIH, DanaFarber, Yale Medical, Biogen, Cedars Sinai, Myriad RBM,Boston Univ.

Massachusetts Governor Issues Proclamation for Precision Health Awareness Week

12

PPH news articles

402

tweets about PPH

154

live streams

  • n Periscope

133,000,000

social media impressions

Revolutionary opportunities to detect earlier and improve treatment of:

  • Pancreatic Cancer
  • Breast Cancer
  • Prostate Cancer
  • Lung Cancer
  • Alzheimer's
  • CTE
  • Concussions
  • Diabetes
  • Multiple Sclerosis
  • Parkinson
  • HIV
  • C-Difficile

6,500 Peer-Reviewed Publications

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Lynchpin

Disrupt Holy Grail

Proven

Product Launches New Answers

Retail

Best in Class $3B to $38Bn1 170+ pubs All Areas $150M Invested 4 2 6 3 5

Proven Management, Bod, Investors and Founder

1 7

Category-defining; Unrivaled Sensitivity Validation: 17/20 top pharma, PPH, 700+ trials Growth & Value; Razor – razor blade, M&A Genotype to phenotype; Drug Development to Dx Methodical market penetration strategy to reward investors Research value backstop with dx / digital disruption potential

Value Differentiator

Poised to Disrupt Healthcare and Create Significant Value

market execution

  • 1. $30bn subject to receipt of regulatory approvals or clearances, which the company has not applied for to date.
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Empowering Personal Health Management Paradigm

* Subject to any required regulatory approvals and clearances, which the company has not applied for to date