Jefferies 2017 Global Healthcare Conference
(NASDAQ: TTOO)
June 7, 2017
Transforming Diagnostics, Patient Care & Economics | 2
1 Mylonakis, E., Clancy, C.J., Ostrosky-Zeichner, et. al. (2015). T2 Magnetic Resonance Assay for the Rapid Diagnosis of Candidemia in Whole Blood: A Clinical Trial. Clinical Infectious Diseases, ciu959.
2 Liu V, et al. Sepsis contributes to nearly half of all hospital deaths in the US. ATS 2014; Abstract A2188.
3 HCUP Statistical Brief #204. May 2016. Agency for Healthcare Research and Quality, Rockville, MD.
4 National Institute of General Medical Sciences. National Institutes of Health. Sepsis fact sheet. 2014.
5 Prescott, H. C., Osterholzer, J. J., Langa, K. M., Angus, D. C., & Iwashyna, T. J. (2016). Late mortality after sepsis: propensity matched cohort study. BMJ, 353, i2375.
6 HCUP Statistical Brief #122. October 2011. Agency for Healthcare Research and Quality, Rockville, MD.
7 Wisplinghoff, H., et al., (2004). Nosocomial bloodstream infections in US hospitals: analysis of 24,179 cases from a prospective nationwide surveillance study. Clinical Infectious Diseases 39(3), 309–317.
8 Parkins, M. D., et al. (2007). Adequacy of empirical antifungal therapy and effect on outcome among patients with invasive Candida species infections. Journal of Antimicrobial Chemotherapy, 60(3), 613-618.
9 Clancy, C. J., & Nguyen, M. H. (2013). Finding the “missing 50%” of invasive candidiasis: how nonculture diagnostics will improve understanding of disease spectrum and transform patient care. Clinical infectious diseases, 56(9), 1284-1292.
10 Gagne, J. J., Breitbart, R. E., Maio, V.,et. al. (2006). Costs associated with candidemia in a hospital setting. P and T, 31(10), 586.
11 Kumar, A., Roberts, D., Wood, K. E., Light, B., Parrillo, J. E., Sharma, S., ... & Gurka, D. (2006). Duration of hypotension before initiation of effective antimicrobial therapy is the critical determinant of survival in human septic shock. Critical Care Medicine, 34(6), 1589-1596.
12 Pfaller, M. A., & Diekema, D. J. (2007). Epidemiology of invasive candidiasis: a persistent public health problem. Clinical Microbiology Reviews, 20(1), 133-163.
13 Pfaller, M.A., Wolk, D.A., and Lowery, T.J. T2MR and T2Candida: novel technology for the rapid diagnosis of candidemia and invasive candidiasis. Future Microbiology, 0 (2015).
14 Riskin, D. J.,et al.,(2009). Massive transfusion protocols: the role of aggressive resuscitation versus product ratio in mortality reduction. Journal of the American College of Surgeons, 209(2), 198-205.
15 Premier healthcare alliance economic outlook – Fall 2012
16 Toner RW et al., Costs to hospitals of acquiring and processing blood in the US: a survey of hospital-based blood banks and transfusion services. Appl Health Econ Health Policy, 2011;9(1):29-37
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Forward-Looking Statements
This presentation contains forward-looking statements. These statements reflect the current views of senior management of T2 Biosystems with respect to future events and financial performance. These statements include forward-looking statements with respect to the Company’s business and industry, as well as its strategy, future operations, prospects, plans and objectives. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities laws or otherwise. Forward-looking statements address matters that involve risks and uncertainties. The factors that could cause actual results to differ materially from those in the forward-looking statements include, among others: (i) T2 Biosystems’ status as an early commercial-stage company and its expectation to incur losses in the future; (ii) T2 Biosystems’ ability to obtain marketing authorization from the FDA or regulatory clearance for its additional product candidates in the United States or any other jurisdiction; (iii) the market acceptance of T2 Biosystems’ T2MR technology; (iv) T2 Biosystems’ ability to timely and successfully develop and commercialize its existing and future product candidates; (v) T2 Biosystems’ ability to successfully manage its growth; (vi) federal, state and foreign regulatory requirements, including FDA regulation of T2 Biosystems’ product candidates; and (vii) other risk factors included in T2 Biosystems’ annual report on form 10-K filed with the Securities and Exchange Commission (SEC) on March 15, 2017 as well as its quarterly reports on form 10-Q and other documents filed by T2 Biosystems with the SEC from time to time. Accordingly, there are or will be important factors that could cause T2 Biosystems’ actual results to differ materially from those indicated in these statements. The statements made herein speak only as of the date of this presentation.
Publicly Available Documents
For additional information regarding T2 Biosystems, you should review the documents that T2 Biosystems has filed with the SEC, including its annual report on Form 10-K filed on March 15, 2017, and its future current and periodic reports to be filed with the SEC. You can obtain such documents for free by visiting EDGAR on the SEC website at www.sec.gov.
Transforming Diagnostics, Patient Care & Economics | 3
Robust Pipeline
A new generation of
diagnostics
The Reason We Are Here
Execution
High-risk patient access
growing and several
collaborations announced
T2MR
Innovative
technology with
broad applications
Market
$3B+ Initial market
potential
Reimbursement
Products covered
by existing
reimbursement codes
Sepsis Diagnostics
Provide species-specific results, direct from whole blood, in 3-5 hours1
A platform technology that fundamentally changes the way that medicine is practiced by transforming
diagnostics for the tangible benefit of patients, practitioners and healthcare institutions
Transforming Diagnostics, Patient Care & Economics | 4
1
3
2
4
Continue to expand globally and gain access to patients within the
customer base who are at high-risk of sepsis infection and could be
tested with our sepsis diagnostic products
Introduce new products to broaden current suite of solutions
Highlight customer success stories to demonstrate the impact that T2MR
technology is having on patient care and hospital economics
Develop partnership pipeline to help accelerate growth profile
Our Priorities
Transforming Diagnostics, Patient Care & Economics | 5
T2MR Revolution
A platform technology with multiple, billion-dollar franchise opportunities in the U.S. alone
FDA filing
targeted mid-2017
T2Bacteria8.75M high-risk
patients
T2GNRResistance
Panel for 500k+
positive patients
Infectious
disease
Cancer
WellnessCardiac
Current Applications
Potential Future Applications
Clinical Trial
targeting 2018
T2Lyme3.4M Lyme tests
run annually
FDA Cleared
T2Candida6.75M high-risk
patients
T2MRHemostasis,
Research &
Companion Dx
Transforming Diagnostics, Patient Care & Economics | 6
The Facts About Sepsis
Most expensive hospital-treated condition in the U.S.
Representing
$23.7B in U.S.
healthcare costs3$Contributes to
nearly 1 in 2
hospital deaths2
Claims more lives
annually than breast
cancer, prostate cancer
and AIDS, combined4
More than 1.6M
diagnosed annually
in the U.S. and
~500,000 die6
Candida is the
most lethal,
common sepsis-
causing
pathogen7,8
More than 1 in 5
surviving patients
die within 2 years as
a consequence of
sepsis5
Transforming Diagnostics, Patient Care & Economics | 7
T2MR Provides Faster, More Accurate Sepsis
Pathogen DetectionTime and sensitivity of blood culture alone is not enough
3-5 HoursT2Candida
Results1
~5-10Hours
Patient on the
right drug
T2Candida
> 1-48 hours: Species Identification
0 HoursSymptoms present
blood samples
taken
1-5 days Blood Culture Growth
24 HoursSome blood
culture positive
results
completed
120 HoursFinal positive
blood culture
results completed
60% Sensitive
~27 Hours-7 Days
Patient on the
right drug
120 HoursNegative blood
culture results
reported
> Once positive
>90% Detected
Transforming Diagnostics, Patient Care & Economics | 8
T2Candida Addresses Large Unmet Market Need
6.75M high-risk patients
Only technology that can derive species-specific results directly from blood
Candida: The Facts
4th Leading hospital-acquired
bloodstream
infection7
40%Mortality Rate8 of infections are missed
by blood culture9
50%Average cost per
patient10
$130K
Each hour of
delayed treatment
increases mortality
risk nearly 8%11 Patients per year12
135,000+
40Days in the hospital10
Transforming Diagnostics, Patient Care & Economics | 9
• Statistically powered
Study demonstrating
$2.3MM in annual
hospital savings
• Reduced median ICU
length of stay per patient
by 7 days (p=0.009)
• Reduction in total length
of stay by 4 days/patient
(p=0.164)
• 75% of negative patients
had antifungals
discontinued or
deescalated
• 83% of patients who
tested positive received
appropriate therapy within
6 hours of the blood draw
and 100% in under 9
hours
• 0 patients who tested
positive had been on
antifungals prior to testing
• Therapy was discontinued
for 100% of the patients
who tested negative
• Reduction in duration of
therapy and time to de-
escalation in negative
patients resulted in
pharmacy savings of
~$500 per patient
• T2Candida detected
56% more positive
patients than blood
culture
• Average length of stay per
patient reduced by 7 days
• Unnecessary antifungal
therapy was avoided in
41% of patients
• Unnecessary antifungal
therapy was discontinued
after 1 dose in another
15% of patients
• Average net antifungal
savings of approximately
~$200 for every patient
tested
T2Candida Panel is Changing Treatment Protocols
Growing number of T2Candida customer success stories
Transforming Diagnostics, Patient Care & Economics | 10
T2Candida Penetration and Goals
Commercial traction growing
Penetration through 2016
Targeting Top 450 Hospitals
126
420K
Hospitals with access to T2Candida
Estimated number of high-risk
patients in hospital customer base
4Q16 – Q317 Target – Prior to
Expected T2Bacteria Launch
200KTarget to increase number of
high-risk patients in hospital
customer base
130KProgress as of March 31,
2017
150K
Transforming Diagnostics, Patient Care & Economics | 11
FDA Clinical Trial results
and FDA filing are anticipated
by mid-2017
T2Bacteria Panel
Along with the T2Candida Panel will be run on the T2Dx Instrument
The T2Bacteria pivotal
study will take place in
10 U.S. hospitals and
test a minimum of 1,850
patient samples
Will leverage T2Candida
installed customer base,
designed to identify the
species of bacterial
infections in 3-6 hours
Transforming Diagnostics, Patient Care & Economics | 12
Potential T2Bacteria Impact Based on Published
DataT2Bacteria Expected Length of Stay Reductions with Appropriate Rx in 1st 24 hours
1. Stosor, Valentina, et al. Archives of Internal Medicine 158.5 (1998): 522-527.
2. Abramson, et al. Infection Control & Hospital Epidemiology 20.06 (1999): 408-411.
3. Kim, B-N., et al. Journal of Hospital Infection 52.2 (2002): 99-106.
4. Sunenshine, Rebecca H. Volume 13, Number 1—January 2007-Emerging Infectious Disease journal-CDC." (2007).
5. Micek, Scott T., et al. Antimicrobial agents and chemotherapy 49.4 (2005): 1306-1311.
6. Tumbarello, Mario, et al. Antimicrobial agents and chemotherapy 54.10 (2010): 4085-4091.
7. Golan, Yoav, et al. Annals of internal medicine 143.12 (2005): 857-869.
E. faecium 1 S. aureus 2 K. pneumoniae 3 A. baumannii 4 P. aeruginosa 5 E. coli 6
Length of Stay Reduction with Appropriate Rx in 1st 24 hours
ICU (days) 3 5 4 7 7 4
Hospital (days) 7 3 4 1 6 4
Cost per ICU Day7 $4,150
Cost per Hospital Day7 $1,560
Total Length of Stay
savings per positive patient$23,400 $25,400 $22,800 $29,100 $38,400 $22,800
Transforming Diagnostics, Patient Care & Economics | 13
Combination of T2Candida and
T2Bacteria may enable 95% of sepsis
patients to receive rapid and appropriate
therapy AND will expand our target
market to top ~2,500 hospitals in the U.S.
Transforming Diagnostics, Patient Care & Economics | 14
Product Pipeline
Ongoing opportunities for value creation
T2Candida
T2Bacteria
T2GNR
T2Candida (expanded panel)
T2BSI
T2Lyme
T2Resistance
T2Hemostasis
T2Tick (tick-borne illness panel)
2016 2017 2018+
Transforming Diagnostics, Patient Care & Economics | 15
Execution
High-risk patient access
growing and several
collaborations announced
Robust Pipeline
A new generation of
diagnostics
T2MR
Innovative
technology with
broad applications
Market
$3B+ Initial market
potential
Reimbursement
Products covered
by existing
reimbursement codes
Sepsis Diagnostics
Provide species-specific results, direct from whole blood, in 3-5 hours1
Transforming Diagnostics, Patient Care &
EconomicsA platform technology with multiple, billion-dollar franchise opportunities