111129 analyst & investor day 2011 complete final - … · • forensics: dna tests as key tool...
TRANSCRIPT
December 1, 2011 / p2 / Analyst & Investor Day
Willkommen!
Welcome!
Bienvenue!
Benvenuto!
Bienvenido!
ようこそ
欢迎大家!
Приемам
أْهًال و َسْهالً
Tecan Analyst & Investor Day 2011
December 1, 2011 / p3 / Analyst & Investor Day
• 7:45-8:20 Welcome Coffee• 8:30-12:45
CEO Welcome and IntroductionLife Sciences Business Vision & StrategyStrengthening the Core BusinessMarket Expansion and Brand LeverageMass Spectrometry in the Clinical LaboratoryFEMS – Front End to Mass Spectrometry Tecan’s Partnering BusinessUpdate on OEM ProjectsProject Acquisition PipelineInnovation at TecanSummary and Closing Remarks
• 12:45-13:45 Buffet Lunch • 13:45-15:00
Instrument DemosProduction TourTecan Integration Group
Today’s Agenda
Pre
sent
atio
ns+
Web
cast
On
Site
LSB
PB
10:00-10:15 Break
11:15-11:30 Break
December 1, 2011 / p4 / Analyst & Investor Day
• Welcome and Introduction• Thomas Bachmann, CEO
• Life Sciences Business• Frederic Vanderhaegen, Executive VP, Head Life Sciences Business• Wendy Lauber, Product Management, Liquid Handling Robotics and Consumables• Ralf Bartl, Program Manager FEMS• Jody M.W. van den Ouweland, Dept. of Clinical Chemistry,
Canisius-Wilhelmina Hospital, Nijmegen, The Netherlands
• Partnering Business• Bernhard Grob, Executive VP, Head Partnering Business
• Innovation at Tecan • Martin Brusdeilins, Executive VP, Head of Development & Operations and CSO
• Summary and Closing Remarks• Thomas Bachmann, CEO
Today’s Speakers
December 1, 2011 / p6 / Analyst & Investor Day
Life Sciences Business
Tecan’s Products, Business Structure and Markets
• Focused on all end-user activities• Products marketed under the Tecan
brand through own sales & service organizations and distributors
Partnering Business• Focused on all OEM activities• Products sold by partners under
their own brand
Life Science Research Diagnostics Forensics Applied
Markets
December 1, 2011 / p7 / Analyst & Investor Day
Transition into the new Tecan Group Organization
• The new Tecan Group organization was established to support the execution of our growth strategy
• Strong market orientation with two distinct businesses
• New organization established and lived; transition went very well
• Management and skills strengthened
• Businesses are gaining momentum; positive impacts in markets
Life SciencesBusiness
PartneringBusiness
Focused on all end-customeractivities
Focused on all OEM activities
Development & Operations
LSB ≈ 62% of sales* PB ≈ 38% of sales*
Science &
Technology
* Based on 2010 Group sales from continuing operations
December 1, 2011 / p8 / Analyst & Investor Day
Tecan’s Business is Supported by Megatrends
• Aging population• Increased incidence of diseases such as cancer, diabetes, cardiovascular
diseases etc. stimulate research and development of novel drugs• Increasing volume for routine tests and emerging menu of new specialized
tests
• Emerging Markets• More people with increased access to healthcare• Major investments in healthcare and life science research
• Explosion in biological understanding• The century of biology• Deeper understanding is boosting new research
• Increasing demand from Applied Markets• Forensics: DNA tests as key tool in crime scene investigation• Veterinary: Globalization and concentration of animal production• Food testing: Safety requirements are becoming increasingly stringent• Others: Environment, Crop Science, Cosmetics etc.
December 1, 2011 / p9 / Analyst & Investor Day
Life SciencesBusiness
PartneringBusiness
Strategic Drivers for Sustainable Profitable Growth
High-Value Services & Consumables
Increased Innovation to Drive Organic Growth
Geographic Expansion into Growth Markets
Diversified Industry Segments & Broad Application Spectrum
In-Licensing and M&A Opportunities
Expanded Project Pipeline
Sales ChannelLeverage
Life Sciences BusinessFrederic Vanderhaegen, Executive Vice President Head Life Sciences Business
Analyst & Investor Day 2011
December 1, 2011 / p11 / Analyst & Investor Day
11
Vision and Strategy Strengthening the core business
Market expansion and brand leverage
Sample Prep for Mass Specas a new innovation focus
Agenda
December 1, 2011 / p12 / Analyst & Investor Day
Research Laboratories:Academic & commercial discovery and development
Clinical Laboratories:Biological sample preparation & automation
Applied markets:Environmental & forensics,…
A leading global provider
of automated liquid
handling and detection
solutions with an added
focus in the clinical mass
spectrometry workflow
Life Sciences Business
December 1, 2011 / p13 / Analyst & Investor Day
Life Sciences Business - a global organization
• 33 Application specialists
• 122 Sales representatives
• 223 Customer supports
≙ 45% of total LSB employees≙ more than 1/3 of Tecan Group employees
December 1, 2011 / p14 / Analyst & Investor Day
Covering a wide range of research and IVD workflows
Gene Synthesis
Amplification& PurificationAmplification
& Purification
Gene CloningGene
Cloning
Gene ExpressionGene
Expression
Sequencing, SNP & WGA Analysis
Sequencing, SNP & WGA Analysis
Molecular DiagnosticsMolecular
Diagnostics
Expression ProfilingExpression
Profiling
ProteinProductionProtein
Production
ProteinPurificationProtein
PurificationModification & Formulation
ADME & Functional Assays
ADME & Functional Assays
Protein &BiomarkerIdentification
Protein &BiomarkerIdentification
DiagnosticImmunoassay &Biomarkers
Cell IsolationCell
Isolation
CellExpressionCell
Expression
Cell Passage& ProductionCell Passage
& ProductionLocalization &Translocation
High ContentScreeningHigh Content
Screening
CellularMolecularDiagnostics
CytometryFunctional AssaysFunctional
AssaysCell Typing &Chemistry
Small MoleculeSynthesis &Combichem
Small MoleculeSynthesis &Combichem
Small MoleculePurification &Identification
Activity & SAR AssaysActivity &
SAR Assays
ADMET & Tox AssaysADMET &
Tox Assays
ProductionQA/QCProduction
QA/QCICD & ClinicalChemistry
Sample Prep Assay Analysis
Gen
omic
s
blue border line boxes: product & processred border line boxes: IVD segments
Prot
eom
ics
Cel
lB
iolo
gySm
all
Mol
ecul
es
December 1, 2011 / p15 / Analyst & Investor Day
Structure of Tecan’s current Life Sciences Business
Sales by product segment
44%
37%
12%7%
Sales by geography
JapanAsia Pacific
EuropeUS
37%
19%
9%
23%
12%
Biopharma LIHACD LIHADETEServiceConsumables
December 1, 2011 / p16 / Analyst & Investor Day
Why refine our strategy?
• Tecan’s current core market is estimated to grow at low single digits and competitive pressure is expected to increase
• Tecan wants to outpace market growth
• Tecan has successfully focused on developing complex, high-end platforms - yet, a niche market
• Microarray-based technologies are being replaced by Multiplex PCR and Next Gen Sequencing
• Tecan did not fully capture growth potential from emerging countries
Tecan needs to pursue new adjacent opportunities, beyond liquid handling and readers to reach double digit growth in Life Sciences Business
December 1, 2011 / p17 / Analyst & Investor Day
The strategic review process identified 4 areas of focus:
Adjacencies in scope: assessed, validated, selected
High-end platform
HP & Attana
Australia & China
Sample prep for
Mass Spec
Core & Prioritized Adjacencies
Strategic priorities
December 1, 2011 / p18 / Analyst & Investor Day
18
Vision and Strategy Strengthening the core business
Market expansion and brand leverage
Sample Prep for Mass Specas a new innovation focus
Agenda
December 1, 2011 / p19 / Analyst & Investor Day
New high performance plate reader infinite M1000 Pro
• Multimode plate readers are one of the fastest growing segments within the lab automationmarket
• The new M1000 Pro multimode reader positionsTecan to exploit this potential and accelerategrowth with a unique set of customer benefits:
• Compatibility with Tecan‘s patent pending µl analysis tool Nanoquant - saves precious samplesand analysis time
Inst
rum
ents
Tecan‘s most flexible Quad4 Monochrometor™-basedmicroplate reader for drug discovery and assay development
December 1, 2011 / p20 / Analyst & Investor Day
Why is Alphascreen important to Tecan?
• Alphascreen is a widely applicable assay(chemistry) platform for drug discovery and appliedresearch applications
• Alphascreen assays offer researchers high sensitivity combined with a significantly simplifiedworklflow
• The use of Alphascreen assay platform isprojected to double within the next 3 years1*
• The unique Tecan solution on infinite M1000 Pro addresses key customer needs in both drugdiscovery and research applications and opens up both growth areas for Tecan
Inst
rum
ents
1* Source HTStec: Multi-Mode Microplate Reader Trends 2011
New Alphascreen read mode expands market reach intoadvanced drug discovery applications
December 1, 2011 / p21 / Analyst & Investor Day
Air Displacement Pipetting Technology for theFreedom EVO®
• Disposable tip only system: Reduced risk of contamination
• Higher throughput: No washing steps in-between pipettingsteps
• Lower maintenance costs: No tubing and valves for the liquid path
• More convenient: No liquid logistics for system liquid and waste compared to liquid displacement technologies
By delivering the best of both worlds, Tecan increases its addressable market
Free
dom
EV
O®
December 1, 2011 / p22 / Analyst & Investor Day
Customized Solutions
Customized Solutions continue to strengthen our position in high-end automated solutions
Free
dom
EV
O®
High throughput sample preparation for flow-cytometry
• Customer: Pharma project / Japan
• Industry: Contract Research Laboratory
• Revenue: 1.9 Mio. CHF
December 1, 2011 / p23 / Analyst & Investor Day
Customized Solutions
Physiology monitoring of microbiological cultures:
• Customer: Gov. project / France
• Industry: Academic Laboratory
• Revenue: 470 k CHF
Customized Solutions enable unique applications via specialized hardware development
Free
dom
EV
O®
December 1, 2011 / p24 / Analyst & Investor Day
Sample aliquoting for Biobanking applications
• Biobanking is currently growing driven by population based Biobanks and Pharmabiobanks
• Tecan well positioned thanks to:• Presence in key reference labs such as UK
Biobank and the Karolinska Biobank• Tube inspection unit• TIG expertise• Partnership with reagents providers
Tecan well positioned to capture Biobanking growth
Free
dom
EV
O®
December 1, 2011 / p25 / Analyst & Investor DayNovember 19, 2009 / p25 / Analyst & Investor Day
30 November, 2011, p 25Myrius Strategy for Success
The new Tecan Myrius powered by MyControl
December 1, 2011 / p26 / Analyst & Investor Day
Myrius® Value Propositions to our CustomersP
latfo
rms
The Myrius Platform fulfills unmet market needs and brings value to our customers
• Simple user interface with integrated touch screen
• Web based technologies for monitoring, providing a walk-away system
• Instant pipetting technology on the touch screen allowing real-time action
December 1, 2011 / p27 / Analyst & Investor Day
Myrius® Value Propositions to our CustomersP
latfo
rms
The Myrius Platform fulfills unmet market needs and brings value to our customers
• Trans ROMA allowing the connection of 2 pipetting platforms
• True parallel processing with Trans ROMA
• Transport (lateral movements of carriers between chassis)
December 1, 2011 / p28 / Analyst & Investor Day
Myrius® Value Propositions to our CustomersP
latfo
rms
The Myrius Platform fulfills unmet market needs and brings value to our customers
• Higher Deck capacity compared to Freedom EVO
• Easy integration of 3rd party devices; increases TIG profitability
• Modular arm configuration and worktable concept
• Integration of detection devices and Tecan modules
December 1, 2011 / p29 / Analyst & Investor Day
New Consumables products 2011
New Consumable products drive growth in all market segments
Con
sum
able
s
February 2011 May 2011 September 2011 October 2011
Life Science Research
Clinical Diagnostics
3rd Party
5ml Disposable Tip forLiquid Handling Arms
25ml trough for maximum reagent recovery
Sterile PurityDisposable Tips
Filtered MCA 384 tips in additional sizes
December 1, 2011 / p30 / Analyst & Investor Day
Nested Disposable Tips for MCA96
• Product launched: January 2009
• Proprietary product developed by and exclusively sold through Tecan
• Approximately 100 MCA 96 systems sold annually
New consumable product lines as growth drivers in Life Science Research market segment
Con
sum
able
s
0.0
10.0
20.0
30.0
40.0
50.0
60.0
mio
. tip
s2007 2008 2009 2010 2011
MCA96 Disposable Tips sold
December 1, 2011 / p31 / Analyst & Investor Day
New Consumables products
Tecan QC Kit in conjunction with market leader Artel enables new Service businessopportunities
Tecan QC kit includes reagents and consumables that enable more revenue pull through from our platforms.
Con
sum
able
s
Microplates Tecan reader SoftwareDye solutions
Highly precise, calibratedand barcoded opticalmicroplates in 96&384well format. Manufacturedby Corning, co-brandedwith Tecan and Artellogo, distribution byTecan.
Color dye solution, manu-factured by Artel. Co-branded packaging, distribution for Tecan products by Tecan.
Infinite F50 entry levelfor 96 well plate
Infinite F200 mid levelfor 384 well plate
Sunrise: alreadyvalidated by Artel
Analysis softwareconsisting of ArtelDLL as core, embedded intoEVOware SW.
Consumables Kit components
Reagents: Color Dye Solution
•Tecan and ArtelCo-Branded
Highly PreciseOptical Microplate
•Calibrated
•Barcoded
Tecan MicroplateReader
•Infinite F50
•Infinite F200
•Sunrise
Fully IntegratedSoftware
•Embedded intoFreedom EVOware®
Software
December 1, 2011 / p32 / Analyst & Investor Day
Customers rely on our Service
• Our instruments are integrated in high-value lab processes and workflows preparing assays, performing measure-ments of those assays, and producing results
• Downtime = lost production time = loss of money and information
• 24’000 customer interactions per year
• Helpdesks and Expertlines in US and Europe and 180 Field Service Engineers and Specialists
Service is a Tecan attitude and a profitable business
Cus
tom
erS
ervi
ce
December 1, 2011 / p33 / Analyst & Investor Day
What is „Service“…?
• Hardware support• Installation and warranty
• Preventive maintenance and repair
• Installation- and operational qualification
• Applications support• Set-up and support during the lifetime of the instrument
• Understanding the customer and helpinghim achieve his goals
• Training the customer• To get the maximum out of his laboratory
solution
Supporting our customers throughout the lifetime of their instrument
Cus
tom
erS
ervi
ce
December 1, 2011 / p34 / Analyst & Investor Day
34
Vision and Strategy Strengthening the core business
Market expansion and brand leverage
Sample Prep for Mass Specas a new innovation focus
Agenda
December 1, 2011 / p35 / Analyst & Investor Day
Strengths of Tecan Sales and Service Channels
• Tecan is global leader in laboratory automation for over 30 years
• With an established Sales and Service network in over 50 countries
• Following our growth strategy, we are leveraging these strengths byoffering innovative 3rd party products to expand and complement ourproduct portfolio
• In 2011, we have established partnerships with HP and Attana to bring their products to the Life Science Market
December 1, 2011 / p36 / Analyst & Investor Day
Direct Digital Titration – Generation of IC50 Curves
• The IC50 is the concentration of an inhibitor where the response (or binding) is reduced by half
• IC50 curves are used to determine and rank the potency of a series of test compounds
• Compounds are diluted in a series of steps
• Tested in a biological assay that measures their effect• Receptors • Enzyme assay• Ion channel
• Compares a series of IC50’s against a standard compound for a particular target to determine a compound’s relative potency
Introduction to the HP D300 Digital Dispenser
Simplified solution for drug titrations in the Drug Discovery Market
December 1, 2011 / p37 / Analyst & Investor Day
HP Value Proposition
• Reduce cost by saving on intermediate plates, tips, DMSO and head count
• Simplifies the workflow and reduces the amount of time required to prepare a plate
• Preserves precious compound
• Give labs many more options for plate formats and the types of experiments that could be run
• Improves scientific results
Bio‐assay workflow
HP Direct Titration
Drug concentrate
Drug concentrate
Bio‐assay with titration
series
Bio‐assay with titration
series
Drug formattingDrug formatting Diluent & plate preparation
Diluent & plate preparation
Serial dilution operations
Serial dilution operations
Daughter plate replication
Daughter plate replication
Tape/Untape; Mix; Shake; Spin; etc;
Tape/Untape; Mix; Shake; Spin; etc;
ReadReagents
Intermediate dilution in media or aq.
Intermediate dilution in media or aq.
Bio‐assay workflow
HP Direct Titration
Drug concentrate
Drug concentrate
Bio‐assay with titration
series
Bio‐assay with titration
series
Drug formattingDrug formatting Diluent & plate preparation
Diluent & plate preparation
Serial dilution operations
Serial dilution operations
Daughter plate replication
Daughter plate replication
Tape/Untape; Mix; Shake; Spin; etc;
Tape/Untape; Mix; Shake; Spin; etc;
ReadReagents
Intermediate dilution in media or aq.
Intermediate dilution in media or aq.H
elw
ettP
acka
rd
Simplified solution for drug titrations in the Drug Discovery Market
December 1, 2011 / p38 / Analyst & Investor Day
Early Access Customer Testimonials
• „For me, it really does revolutionize the way we do drug discovery — taking the process and bringing itback to the researchers is a real tremendousadvance,”
- Robert Jordern, SIGA Technologies Silicon Valley / San Jose Business Journal March 4, 2011
Robert Jorden, SIGA Technologies
• „Digital titration replaces analog serial dilution; thecontrol of discrete numbers of drops in every well independently enables innovative experimental designs. Makes the theoretical practical“
- Dan Thomas, GSK The Impact of Non-Contact PicoliterDispense Technology in the Elimination of Serial Dilution; SBS, 27.March
Hel
wet
tPac
kard
The Voice of the Customer from the Biotech Market
December 1, 2011 / p39 / Analyst & Investor Day
39
Vision and Strategy Strengthening the core business
Market expansion and brand leverage
Sample Prep for Mass Specas a new innovation focus
Agenda
December 1, 2011 / p40 / Analyst & Investor Day
China Strategy
• Fueled by public sector spending and increasing desires for world-class research capabilities, Tecan’s potential market in China is growing at a CAGR of 18%
• Tecan used a robust strategic process to identify most attractive segments to generate above market growth
Prioritization Criteria
Market size
Growth rate
Tecan position
Competitive intensity
December 1, 2011 / p41 / Analyst & Investor Day
Tecan will expand its business in China pursuing a 4 steps plan
• Establish direct “sales” model for Academia & key Blood Bank & Applied Market customers
• Create application support capabilities• Strengthening relationship with strategic distributors
• Create universal service interface in China• Strengthen direct service team • Localize disposable sourcing partnership
• Partner with local player to develop local capabilities• Prioritize & determine feasibility to localize operations in China
Enhance direct service
capabilities
Enhance direct sales
capabilities
“Go Local”: Create local
development & manufacturing
capabilities
Execute KOL & marketing strategy
• Develop relationship with industry Key Opinion Leaders • Create “center of expertise” for automation solutions• Expand our marketing activities
1
2
4
3
December 1, 2011 / p42 / Analyst & Investor Day
China go-to-market
• Through building up the network of local dealers, Tecan reduces the reliance on single distributor and penetrate the market more effectively at regional level
• Shift in sales model drives increase in transfer pricing levels
• We are tripling our presence in China over the next 3 years
• Key opinion leader and brand building
TecanRegional distributorLocal dealer
Current margin structure
Future margin structure
Distributors
Enhance direct service
capabilities
Enhance direct sales
capabilities
“Go Local”: Create local
development & manufacturing
capabilities
Execute KOL & marketing strategy
1
2
4
3
December 1, 2011 / p43 / Analyst & Investor Day
Influencing Law-making
Influencing Users
KOL refers to an independent expert who is not officially related to Tecan but has a strategic relationship with Tecan to drive customers’ preference
Related Organization
End User
RegulatoryAuthority
Influencer
AcademicLeader
Decision maker
Product Branding
Technology Adoption
Policy Formulation
Industry Standard
Establishment
Enhance direct service
capabilities
Enhance direct sales
capabilities
“Go Local”: Create local
development & manufacturing
capabilities
Execute KOL & marketing strategy
1
2
4
3
December 1, 2011 / p44 / Analyst & Investor Day
44
Vision and Strategy Strengthening the core business
Market expansion and brand leverage
Sample Prep for Mass Specas a new innovation focus
Agenda
December 1, 2011 / p45 / Analyst & Investor DayMass Spectrometry in the Clinical LaboratoryMass Spectrometry in the Clinical Laboratory
Strengths, Applications, ChallengesStrengths, Applications, Challenges
0101‐‐1212‐‐20112011
JMW van den Ouweland, PhDJMW van den Ouweland, PhDDept. of Clinical ChemistryDept. of Clinical Chemistry
CanisiusCanisius--Wilhelmina HospitalWilhelmina HospitalNijmegen, The NetherlandsNijmegen, The Netherlands
December 1, 2011 / p46 / Analyst & Investor Day
Overview
• brief overview of LC-MS
• LC-MS by SWOT analysis
• areas of application
• drivers of adoption
December 1, 2011 / p47 / Analyst & Investor Day
Historical perspective
• immunoassays 1970s
Increasing use of LC-MS in clinical laboratories over the last 10-15 years
• PCR 1980s
electrospray ionisation (ESI) (Fenn 1980)
• mass spectrometry 1990s
December 1, 2011 / p48 / Analyst & Investor Day
LC-MS : step by step
SAMPLE PREPARATION
CHROMATOGRAPHY
MASS SPECTROMETRY
- dilute & shoot- protein precipitation- liquid-liquid extraction- solid phase extraction- immunoaffinity purification
- quadrupolesingle vs tandem ( sensitivity, dynamic range)
- ion trap- time of flight
- GC- LC
December 1, 2011 / p51 / Analyst & Investor Day
Sensitivity & specificity
Rosner et al J Clin Endocrinol Metab 2007;92:405
Herold et al. Clin Chem 2003;49:1250
“LC-MS/MS is the method of choice for the measurement of certain steroid hormones, particularly for those which rely on accurate and specific measurement at low concentrations.”
December 1, 2011 / p52 / Analyst & Investor Day
Specificity
R2 : 0.58
Average bias 10.13 nmol/L
Loca
l Cor
tisol
(μg/
dL)
Intensive Care Medicine 2009;35:2151-6 M. Vogeser
December 1, 2011 / p53 / Analyst & Investor Day
Specificity
R2 : 0.58
Average bias 10.13 nmol/L
M. Vogeser
December 1, 2011 / p54 / Analyst & Investor Day
Strengths
• possibility to measure multiple analytes in the same sample simultaneously
• high sensitivity
• high specificity
• near reference methodology in routine setting (isotope-dilution)
• high speed of development at low costs of new assays when compared to immunoassays by IVD companies
• low costs per sample in terms of reagents
• versatility
•compatible with automated sample handling configurations
December 1, 2011 / p55 / Analyst & Investor Day
Weaknesses
• high instrument costs (≈ €250.000,- for LC-MS/MS)- high test volume needed for cost-effective operation
• limited sample throughput in conventional set-up
• serial (batch-wise), non random-access operation
• need for highly skilled personnel for method development, validation, operation and troubleshooting
• lack of clearly defined quality regulations
• limited experience of IVD requirements from MS vendors
• absence or limited availability of CE/IVD approved reagent-kits
December 1, 2011 / p56 / Analyst & Investor Day
Opportunities
• progress towards more user-friendly instruments (with integration of all components into a single system)
• profiling of metabolically related metabolites (context)
• adoption of MS technology by major IVD companies
• broader availability of CE/IVD approved kits for LC-MS/MS analysis
• quantitative measurement of peptides and proteins
December 1, 2011 / p57 / Analyst & Investor Day
Threats
• speed of development of new instruments largely driven by sensitivity needs > hard to keep up with (e.g development of commercially available kits) and requires regular adaptation of routine practice
• growing difficulty finding (skilled) technicians (and experience at an academic level)
• lack of commitment from major IVD companies
• regulatory bodies applying restrictions on using laboratory-developed tests (LTDs or “home-brew”) assays for diagnostic purposes
• competition from innovations in immunoassays or from the introduction of new technologies
December 1, 2011 / p58 / Analyst & Investor Day
Areas of Application in the Clinical Laboratory
• Metabolic disorders ( e.g. acylcarnitines and amino acids in new born screening)
• Therapeutic drug monitoring (e.g. immunosuppressants, antidepressants)
• Drugs of abuse and pain-management testing (e.g. amphetamines, benzodiazepines)
• Endocrinology (e.g. steroids, catecholamines)
December 1, 2011 / p59 / Analyst & Investor Day
25-OH vitamin D measurement by LC-MS
• With annual doubling of requests for 25(OH)D over the last 3-5 years, it has become the number one LC-MS/MS test in many clinical laboratories worldwide.
• High prevalence of vitamin D deficiency, with recognition of its importance in skeletal as well as in non-skeletal disease, including autoimmune-, infectious- and cardiovascular disease.
• LC-MS/MS measures 25OHD3 and 25OHD2 independently.
• Immunoassays show cross-reactivity towards other major circulating vitamin D metabolites and are prone to matrix influences.
• 25OHD testing important for diagnosis of vitamin D deficiency and monitoring of vitamin D supplementation.
December 1, 2011 / p60 / Analyst & Investor Day
Vitamin D requests
vitamine D CWZ
010002000300040005000600070008000
2005 2006 2007 2008 2009 2010
year
num
ber
workload -> sample preparation and analysis time
December 1, 2011 / p61 / Analyst & Investor Day
Sample preparation
• manual manifold
• manual 96-wells format
• semi-automated sample prep
Costs(ROI)
• on-line SPE
December 1, 2011 / p62 / Analyst & Investor Day
Sample preparation for 25OHD by ILE
• rapid and simple sample extraction in 96-well plates
• no need for centrifugation, vacuum / positive pressure systems or robotics
ILE = Immobilized Liquid Extraction
• simple “pipette & shake” approach
December 1, 2011 / p63 / Analyst & Investor Day
Sample preparation for 25OHD by ILE
• Manual 96-wells SPE format 4 h sample preparation time
• Manual 96-wells ILE format 1,5 h sample preparation time
CWZ sept 2011: beta-site test results
• Over 50% time reduction in sample preparation
• First test results show promising
25OHD testing by ILE vs SPE
020406080
100120140160
0 20 40 60 80 100 120 140 160
25OHD (nmol/L) by SPE
25O
HD
(nm
ol/L
) by
ILE ILE = 1,0 x SPE – 0,799
R= 0,944 (P&B regr.)
December 1, 2011 / p64 / Analyst & Investor Day
• Platform stability & longevity (freezing instrument design)- less revalidation of assays & retraining for users- decreased regulatory compliance burden for vendors- allows expansion of vendor-developed test menus- enhanced service & support capabilities
Drivers of adoption of MS in clinical laboratories
• Ease of use- random-access- walk-away- ready-to-use reagent kits- practicability identical to today’s immuno-analyzers
• Automation- development of innovative sample preparation modules- increased sample throughput
December 1, 2011 / p65 / Analyst & Investor Day
• Peptide & protein quantification in addition to low molecular weight (LMW) analytes
Drivers of adoption of MS in clinical laboratories continued
• Full support by IVD industry- reagents & instruments- 24 h repair service
• Laboratory information management system (LIMS) integration
…a step by step process
December 1, 2011 / p66 / Analyst & Investor Day
Development of immuno-analysers
1981 1988 1993 1999
Abbott TDx Abbott AxSymAbbott IMxAbbott
ARCHITECT
20 years
MS
December 1, 2011 / p68 / Analyst & Investor Day
• This presentation gives an overview on Tecan’s front-end sample preparation developments for mass spectrometry (the FEMS project)
Welcome to the World of Sample Preparation for MS!
Replica of an early mass spectrometer, Wikipedia
December 1, 2011 / p69 / Analyst & Investor Day
Global Market for Mass Spectrometry
Source: Strategic Directions International, Global Assessment Report, 11th Edition, October 2010
• Triple Quadrupole: neonatal screening, screening for various deficiencies and forprescription drug abuse• Focus of FEMS
• MALDI-TOF: Identification of pathogens, such as yeast, bacteria and fungi• Existing partnerships for front-end solutions based on Freedom EVO platform
CAGR=8.6%
Mar
ket D
eman
d ($
mili
ons)
Instrument Demand by IndustryMarket Demand for Instruments and Growth
Main Mass Spectrometry Techniques in Hospitals & Clinical
2009
December 1, 2011 / p70 / Analyst & Investor Day
Popular Clinical Tandem LC-MS application examples
• Endocrinology- Hormones, Steroids, Vitamin D, Catecholamines and Metanephrines
• Newborn Screening - Fatty Acid Oxidation Disorders, Amino Acid Profiles, Cystic Fibrosis
• Clinical Toxicology, Pain Management- Amphetamines, Opiates, Cannabis, LSD, Cocaine, Benzodiazepine
• Immunosuppressants- Cyclosporine A, Tacrolimus, Everolimus, Sirolimus
December 1, 2011 / p71 / Analyst & Investor Day
The key customer problems we are addressing
• Eliminate the burden of complicated sample preparation
• Eliminate laborious and error prone manual workflow
• Eliminate the risk of home-brew assays
• Improve robustness and reproducibility
• Enable standardization
• Comply with regulatory standards and requirements
December 1, 2011 / p72 / Analyst & Investor Day
3 phases to pursue the clinical mass spec growth vector
• Automated assay prep and sample extraction
• Automated sample prep
• LC-MS detection
LC-MSKits
Automated Sample PrepPlatform (FEMS) Full Service Solution
Phase 3Phase 1
• Sample extraction
Extraction Plate
Platforms
Additional KitsVitamin D Kit + potentially additional Kits
Phase 2
Additional Kits
December 1, 2011 / p73 / Analyst & Investor Day
How will FEMS change the laboratory landscape?
Vision Bring MS based testing to the same level of ease of use and performance as immunoassays by providing a panel of sample preparation solutions for clinical workflows.
Vision Bring MS based testing to the same level of ease of use and performance as immunoassays by providing a panel of sample preparation solutions for clinical workflows.
Realization• Automation of workflow according to clinical routine standards• Off-the-shelf solutions and standardization
Realization• Automation of workflow according to clinical routine standards• Off-the-shelf solutions and standardization
Impact• Reduce required skill set of employees• Increase reproducibility of results • Increase walk-away time• Move away from “exotic research lab” image towards high-end routine laboratory• Reduce labor costs• Quality improvement by standardization and validated kits• Increased performance• Increased routine usability
Impact• Reduce required skill set of employees• Increase reproducibility of results • Increase walk-away time• Move away from “exotic research lab” image towards high-end routine laboratory• Reduce labor costs• Quality improvement by standardization and validated kits• Increased performance• Increased routine usability
December 1, 2011 / p74 / Analyst & Investor Day
Phase1: Faster market entry of the FEMS Project
• In addition to our dedicated sample preparation solution, we have decided to also develop a DWP based solution for Vitamin D isolation• Earlier market entry
• Get market awareness
• Proof of principle and technology
• Vitamin D testing in a DWP for manual use for any commercial LH-robot
• It is for RUO only (not for IVD)
• It addresses for batch processes
• It targets a higher throughput customer base
• Makes workflows simple to automate
December 1, 2011 / p75 / Analyst & Investor Day
The Vitamin D on DWP product for launch
• Extraction plate with reagents to isolate Vitamin D from serum or plasma
• 96 and 576 tests per kit
December 1, 2011 / p76 / Analyst & Investor Day
Phase 2: Dedicated sample preparation
• Automate clinical sample preparation of small molecules• LC-MS front-end • Full sample/reagent tracking• Highest data comparability and reproducibility• Enable use by low-skilled personnel• Speed up sample preparation/optimize MS runtime• Simplify validation by standardization and IVD kits• Increase reliability and data quality• Consumable-driven business model
December 1, 2011 / p77 / Analyst & Investor Day
Pre-Launch Activities
• Key features• High reproducibility• Excellent protein removal• Automation friendly• Fast
Feedback• High interest in the technology• Speed and simplicity appreciated• Requests for testing received• "That is what is needed."
Feedback• High interest in the technology• Speed and simplicity appreciated• Requests for testing received• "That is what is needed."
Activity•Symposium/Exhibition•6 Beta-sites executed•Launch Q1 2012
Activity•Symposium/Exhibition•6 Beta-sites executed•Launch Q1 2012
December 1, 2011 / p78 / Analyst & Investor Day
• Outstanding consumable-driven product concept
• Builds on Tecan strengths in sample preparation, liquid handling expertise and the strong Tecan brand
• Founded on an exciting proprietary technology
• Significant high margin business potential
• Reduced time to market with plate format
• Further successful activities with partners for MS sample preparation
Summary
December 1, 2011 / p79 / Analyst & Investor Day
79
Vision and Strategy Strengthening the core business
Market expansion and brand leverage
Sample Prep for Mass Specas a new innovation focus
Agenda
December 1, 2011 / p80 / Analyst & Investor Day
BaseBusiness
ProductSolutionsTechnologies Markets
ChannelsBrand
Business Models,Skills & Resources
AdjacenciesReshape and focus the core business
to take market share
Prioritize a major growth vector by
developing the MS Sample prep market
for DX
Build a culture and infrastructure that better meet market needs + customer
expectations
Distribution of HP, Attana, ...
&
China expansion
We identified 4 priorities that balance and leverage existing product portfolio and sales channels
4 Strategic priorities for Life Sciences Business
Goals: • Double digit sales CAGR• EBIT improvement• Executable• Good risk &
reward balance
Partnering Business UpdateDr. Bernhard Grob, Executive Vice President Head of Partnering Business
Analyst & Investor Day 2011
December 1, 2011 / p82 / Analyst & Investor Day
Contents
• Tecan’s Current Partnering Business
• Update on various OEM Projects
• Project Acquisition Pipeline
December 1, 2011 / p83 / Analyst & Investor Day
Tecan’s Growing OEM Business
OEM BusinessEnd-user Business
Partnering Business sales Partnering Business as a % of total sales
Components
Instruments, Service & Consumables
37.8%2010
43.7%H1 2011
•Total sales for all periods are from continuing operations only
0
20
40
60
80
100
120
140
160
2005 2008 2009 2010
CH
F (m
io)
CAGR: 10.5% CAGR: 14.4%
30.8%2009
• H1 2011 sales up by 1.0% in CHF and 5.7% in local currencies
• Despite high baseline resulting from special orders in H1 2010
December 1, 2011 / p84 / Analyst & Investor Day
Structure of Partnering Business
55%29%
9%7%Sales by Product Group
Detection
R&D Funding
Liquid Handling
Components
46%
22%
9%6%
17%
Sales by Product Class
Service/Spare Parts
Plastic Consumables
Systems / Instruments
Components
R&D Funding
December 1, 2011 / p85 / Analyst & Investor Day
Tecan’s Broad OEM Offering
Dedicated Solutions
OEM Components
Cus
tom
erS
ervi
ce &
S
pare
Par
tsP
lasticC
onsumables
Platform-based Solutions
Integrated Solutions• Concepts developed by Tecan and showcased to potential partners• Integrating instrument, plastic consumables and enabling reagents
P14 P16Under development
December 1, 2011 / p86 / Analyst & Investor Day
Contents
• Tecan’s Current Partnering Business
• Update on various OEM Projects
• Project Acquisition Pipeline
December 1, 2011 / p87 / Analyst & Investor DayDecember 1, 2011 / p87 / Analyst & Investor Day
P14: Major OEM Agreement
• Contract signed in November 2010
• Tecan to develop and supply next generation blood-banking instrument
• Builds upon established OEM partnership with a global leader
• Program in advanced development stage• Addresses various global customer needs
• Customer feedback on prototype has been positive:• “The design is appealing and meets our needs”
• “It leapfrogs current offerings from a technology and ease-of-use standpoint”
• “It’s the right for solution for our labs”
• “How soon can I have one?”
December 1, 2011 / p88 / Analyst & Investor Day
P16: Major Agreement with New OEM Customer
• P16 program - agreement with new OEM customer, a global leader in a fast growing field of diagnostics, signed in May 2011
• Tecan to develop and supply a next generation dedicated diagnostics instrument
• Sales potential* estimated to be more than CHF 100m over first 5years
• Program on track and in advanced development stage – P1 prototypes in intense testing phase, P2 prototypes in assembly process
• Supply of first instruments for commercial launch projected “within the next 24 months” after signing the agreement in May 2011
• P16 program demonstrates Tecan’s ability and track record with automating diagnostics workflows and with industrialization of R&D projects.
* Upon successful completion of development
December 1, 2011 / p89 / Analyst & Investor Day
Enigma: Point-of-care Molecular Diagnostics
• Tecan will industrialize and deliver commercially manufactured instruments for GSK Europe and Enigma Diagnostic’s global market supplies
• Enigma ML instrument delivers fully-automated results from swab samples in less than 60 minutes at the point of care
• Eddie Gray, President, PharmaceuticalsEurope of GSK said: „The collaboration withEnigma provides GSK the opportunity to offer a more complete solution to the healthcarecommunity and improve patient care throughthe provision of rapid, state of the art diagnostictests.”
• Late stage industrialization activities are currently on-going, includingvalidation and verification of production line and ML units are beingmanufactured and shipped for the start of Enigma‘s clinical studies.
December 1, 2011 / p90 / Analyst & Investor Day
HPV Total SolutionSample Extraction
DNA Extraction 24, 48 or 96 samples
Various Molecular Tests
Expansion of Hologic’s Molecular Laboratory Solutions
New:
Launch of Cervista MTA expands Hologic’s portfolio and allows it to tap into the lower throughput HPV labs (largely un-served with automation)
December 1, 2011 / p91 / Analyst & Investor Day
NeoPlex4(Newborn)
Signed OEM Development & Supply Contracts2010 2011 2012 2013
Liquid Handling SolutionsSupply of 9 instruments
= anticipated commercial supply= commercial supply= R&D and validation
ELISA platform for MUREX line(Infec. diseases)
Detection InstrumentsSupply of 6 instruments
Recently launched:Qubit 2.0(Genomics)
Configuration 1 Configuration 2Configuration 3
(MDx)
Under development / recently launched:DNA Extractor(MDx) High Throughput HTA
Mid Throughput MTA
P16
Enigma ML(PoC MDx)
P14
December 1, 2011 / p92 / Analyst & Investor Day
Our OEM Instrument Partners
Liquid Handling Solutions
Detection Instruments
December 1, 2011 / p93 / Analyst & Investor Day
Contents
• Tecan’s Current Partnering Business
• Update on various OEM Projects
• Project Acquisition Pipeline
December 1, 2011 / p94 / Analyst & Investor Day
Project Acquisition Pipeline for OEM Systems
Share of Solution(# of projects)
Number of Pipeline ProjectsBy Product Group
Dedicated Instruments
Platform-based
Estimated Annual Sales Potential of Instruments (in million CHF)
Liquid Handling
Detection Instruments
>10 million
5-10 million
<5 million
613
Liquid Handling Systems (excluding Detection instruments):
• Currently, an additional 3 new agreementsor amendments to existing agreements forthe addition of new products are undernegotiation
• 3 new agreements signed sinceNovember 2010
Analyst & Investor Day 2011
Innovation at TecanDr. Martin Brusdeilins, Executive Vice President Head of Development & Operations and CSO
December 1, 2011 / p96 / Analyst & Investor Day
Innovation at Tecan – The New Organization Combines Research, Development and Operations
Innovation&
Incubation
Platform and Product
DevelopmentOperations
Life SciencesBusiness
PartneringBusiness
Focused on all end-customeractivities
Focused on all OEM activities
Development & Operations
Science &
Technology
December 1, 2011 / p97 / Analyst & Investor Day
Current Technology Portfolio
New Strategic Areas Require a Solid Road Map Approach
Product Line Strategy
Future Product Portfolio
Product Roadmap
Platform Strategy
Technology Gap Analysis
Technology Roadmap
December 1, 2011 / p98 / Analyst & Investor Day
Strategy Determines the Product Road Map…
Example: FEMS
Instruments and Components
Reagents VitD Plate
AutomationFor Plate
Analyte Panel 1
Analyte Panel 2
Analyte Panel 3
Automated Sample Prep
Full Service Solution FEMS
3rd partyproducts
GC & LCValves
Analyte Panel 5
Analyte Panel 4
Analyte Panel 6
Analyte Panel 7
Analyte Panel 8
3rd partyproducts
December 1, 2011 / p99 / Analyst & Investor Day
The Product Road Map Determines the Platform Design
Enabling Technologies
Platform
Products
ET1 ET1 ET1 ET1 ET1 ET1
Collection of plug-and-play fully verified & validated modules to be used in products
Product1 Product2 Product3 Product4
A platform approach must allow frequent low-cost product launches based on an upfront investment into the platform
December 1, 2011 / p100 / Analyst & Investor Day
Example - Liquid Handling Platform
Enabling Technologies
Platform
Products
PMP MCA 96
MCA 384 AirLiHa Detec-
tor PosID
Collection of plug-and-play fully verified & validated modules to be used in products
EVO 75 EVO 100 EVO 150 EVO 200 EVOLyzer
December 1, 2011 / p101 / Analyst & Investor Day
Strategic Alignment of Technology Projects Will Cover the Following Segments
Core Business
LSB Strategy PB Strategy
Corporate Strategy
December 1, 2011 / p102 / Analyst & Investor Day
Seamless R&D and Operations Strategy
• Product Road Map(s) to educate Product Platform design(s)
• Mature technologies to enter development portfolio
• Development of plug & play modules to feed product platforms
• Allowing for continuous stream of derivative products exiting thedevelopment pipeline
• Risk Management Approach for design and technology transfer
• With seamless transition into Operations
• Through early participation of Procurement to support R&D
• Earliest possible design freeze to allow for early technology transferinto operations
December 1, 2011 / p104 / Analyst & Investor Day
Market Dynamics
• Megatrends are intact
• Strong demand in Emerging Markets
• Continued solid demand in most end markets and regions
Tailwind Headwind
• Financial crisis and increased recessionary fears
• Austerity measures in various countries impacting investments in research and healthcare
December 1, 2011 / p105 / Analyst & Investor Day
Tecan‘s Diversification Provides a Solid Basis
62%
47%
37%12%
4%
69%23%
8%
Sales by region
Sales by product groups
End customersOEM customers
AsiaOther
North AmericaEurope
InstrumentsServices & spare partsPlastic consumables
Sales by distribution channels
38%
Sales by customer segments
PharmaAcademia
DiagnosticsBiotech
16%58%
14%
12%
December 1, 2011 / p106 / Analyst & Investor Day
Accelerating Profitable Growth
2.72.1
8.4
-0.6
-2
0
2
4
6
8
10
12
2007 2008 2009 2010 2011e 2012e 2013e
Sales growth in local currencies*
* Sales 2007-2010 excludingSam
ple Managem
ent
Guidance Outlook
Life
Sci
ence
sB
usin
ess
Part
nerin
gB
usin
ess
• Launch of Air Displacement technology, new detection instruments, Myriusplatform, consumables + first FEMS kit
• Generation of incremental sales with HP and Attana products
• Going direct in China and expansion into other growth markets
• Supply of new instruments to generate incremental sales with existing and new customers
• Continuously expanding project pipeline
• Growing services and consumables business, building on increased installed base of instruments
December 1, 2011 / p107 / Analyst & Investor Day
Confirming Outlook for Full Year 2011
Mid-single-digit sales growth in local currencies
Sales FY 2011 Profitability FY 2011As of March 10, 2011
EBIT Margin of 12-13%Based on average FX rates of:1.30 EUR/CHF and 1.00 USD/CHF
Sales forecast increasedSales growth in local currencies inthe high single digits
Updated guidance as of August 18, 2011
Profitability target confirmedEBIT Margin of 12-13%Based on average FX rates of:1.20 EUR/CHF and 0.85 USD/CHF
December 1, 2011 / p108 / Analyst & Investor Day
Summary and Conclusion
• Megatrends are supporting our business
• Major development projects underway
• Several key product launches in 2012 and 2013
• Well positioned to capture multiple growth opportunities
• Life Sciences Business and Partnering Business - two strong pillars for accelerated profitable growth
Safe Harbor StatementAll statements in this presentation not referring to historical facts are predictions of the future and constitute no guarantee whatsoever of future performances. They are subject to risks and uncertainties including, but not limited to, future global economic conditions, exchange rates, legal regulations, market conditions, activities of competitors and other factors outside the Company’s control.
Tecan Group AG is making all efforts to include accurate and up-to-date information into this presentation. Yet, it cannot be ruled out that omissions or errors might have occurred. Therefore, Tecan Group AG cannot make any representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this presentation. Changes in this presentation can be made any time without notice. All mentioned trademarks are protected by law. © Tecan Group AG, Tecan Trading AG, Switzerland, all rights reserved.