datatrak 2015 ld micro invitational presentation
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June 2015
LD Micro Invitational 2015
Confidential – 2
Company Overview
Confidential – 3
The First SaaS Cloud-based dClinical Technology
and Services Provider1991
DTRK
5 US Offices, new ChicagoStrategic Partner in Pan Asia
Pre-clinical, Phase I – III, Late Stage Drug and Device Studies - Over 25,000 users trained – 1.5TB data stored
Engaged 100s of clients in 1000s of trials, including 5 of the top 10 Pharma and 3 of the top 10 Biotech Companies
Founded
Ticker
Clients
Scope
Locations
Confidential – 4
Management Team Led by Healthcare Executives
Laurence P. Birch, CPA, CGMAChairman and CEO
Jennifer W. Mabe, CPA, CGMACFO
Bill CoatesVP Business Development and Strategy
Dr. Bill GluckVP Clinical Knowledge
Tim LyonsVP Software Dev and Operations
Varnesh SritharanVP Legal Affairs
Susan BishInterim VP Marketing
Walt TownsendSr. Director, Quality Assurance
John ClineVP Client Solutions
Confidential – 5
Cloud Technology and Analytics
Unified dClinical™ Platform
Professional Project Teams
Clinical and Consulting Expertise
Confidential – 6
Confidential – 7
► Why is inferior technology accepted?• Challenge the market status quo• There is a better way
► DATATRAK Unified Platform• Removes complexities inherent in
integrated solutions like Medidata, Oracle, Others
► Results?• Clarity from better reporting• Time savings• Reduced cost
Challenging the Industry
Confidential – 8
Confidential – 9
Great Technology Means Less Need for Support
► 24/7 Global Support
► Staffed by DATATRAK team members• Team of 3 Experts• We don’t need
more!
► 95% of calls are administrative• Access resets
Confidential – 10
Academic Institutions
Partial Customer ListingMedical DevicesCROs
Strategic Resellers
Biopharmaceutical
Technology Partners
Confidential – 11
Financial OverviewUpward Trends in Backlog -Highest Backlog & New Contracts in history
Strong Balance Sheet - No debt except for trade payables. Lower Debt-to-Asset than competitors - Positive Working Capital - Lowest DSO in peer group – strong cash management
Diversity & Stability- Continued new client acquisition - No single client represents even 10% of Revenue
Steady Growth - 2.6 Book-to-Bill Ratio
Industry Leading Gross Margins - 77% - skilled deployment of resources coupled with strength of Unified Platform 2009 2010 2011 2012 2013 2014
$0
$5
$10
$15
$20
$25
$30
Revenue Backlog
(mill
ions)
DATATRAK Confidential
Confidential –
Market Overview
12
Confidential – 13
Total Addressable Market
Clinical Development Spend
$85B
Life Sciences IT
Spend $40B
dClinical Solutions Spend
$3B
Confidential – 14
Growth of dClinical Market
►CAGR of 13.5% through 2018
• $5 Billion Market Size in 2018
►Growth fueled by: • Record drug approvals in 2014 (41)• Industry’s focus on rare diseases,
biosimilars and immunotherapies• Biotech IPOs
*dClinical Solutions expected to grow at a CAGR of 13.5% to reach $5 billion by 2018
Confidential –
The Balancing Act
15
The key challenge for drug sponsors, policy
makers and payers is to balance the need for new innovative medicines with the equally pressing need
to bring health care spending under control.
- Tufts CSDD Director Kenneth Kaitin
Confidential – 16
Rising cost of drug development
Increasing length of time to market
Shrinking patent shelf life
$1.4 B
13 years
4 of 17 years to
achieve ROI
The Up Hill Battle Our Customers Face
Source: Tufts Center For Study of Drug Development 2014
Confidential –
Pervasive Problems in Data Management
► Delayed Insights to Make Informed Decisions• Long wait times for reporting• Outsourced with long wait times
of days - weeks
► Time consuming trial management• Complex mid-study changes • Systems that are difficult to
learn and use
► Resulting in increased time and cost to complete research
17
Confidential – 18
dClinical: Next Generation Solution
► Cloud, Mobile, Big Data, Analytics, Social, Wearable Devices• More data from more sources• Analyzing the total data set
across all sources to maximize insight
Confidential –
How the Unified dClinical™ PlatformHelps Customers
► Simplifies dClincial process• Removes complexities
considered status quo
► Saves valuable time• Reduces study cost• Reduces patent shelf burn• Increase potential for drug ROI
► Results in faster market introduction • Needed treatments to
waiting patients faster
19
Confidential –
Unified vs. Integrated Systems
20
• ONE Database• ONE Source For Real-Time
Data• ONE Cross-Study Reporting
Tool• ONE Digital Platform• ONE Training for All
Solutions
• Multiple Friction Points• Increased Validation• Multiple Sources of
Data• Multiple Interfaces• Increased Training
Needs• Delayed Data Feeds
Confidential – 21
Growth Strategy
Confidential – 22
Strategy for Growth
Challenge Market Status Quo - Position Technology Gold Standard
Product Roadmap - UX CTMS 360™, UX dPRO (future) , UX Wearables (future)
Grow Services Revenue- Consulting and Support Services (DCCS)- Leverage CRO Relationships
Growth Channels- CRO, Sponsors, Device, Biotech, Strategic Partners in Asia Pacific- TBT EA
Confidential – 23
Targeted Growth Areas
Confidential – 24
► Japan• NTT Data & ClinCloud are strategic partners in Japan• Clients include to pharma and research centers• Over 100 trials deployed• Focus on PMS market – est. $200M
► China• NTT Data is strategic partner in China• DATATRAK working with multiple CROs• Clinical Trial Market is growing and expected to reach $48 billion by
2016
Asia Pacific StrategyJapan
China
Confidential – 25
CTMS
Confidential – 26
CTMS: A Definition
► A clinical trial management system (CTMS) is a software solution used by biotech, pharma, device, and CRO entities to manage the business of research. • Budget Manager• Personnel Manager• Vendor Manager• Sites Manager• Holistic Clinical Data Manager
Confidential – 27
Closer Look at 2017 CTMS Market
Fragmented Market Share
PAREXEL - 24%
Oracle - 19%
Medidata - 14%
Bioclinica - 7%
All others - 36%
Confidential – 28
► Simplifying the business of research• Leverages the power of the unified dClinical™ platform• Active management of investment with instant insight
to status of all trials on the platform – Payments, Staffing, Visits, and more
• Regulatory reporting streamlined
► 1% market share is $15 Million
► Launching June 2015
► Elegantly simple, remarkably sophisticated
Confidential – 29
Active Trial Management Means Better Investment Management
► CTMS market ripe for unified benefits • Need for online real-time data
access• 360 Data Views• Execs can actively manage trial
investment• Information for investors and
financiers readily available
Confidential – 30
Financial Performance
Confidential – 31
Historical vs. Current Metrics
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014$0
$5
$10
$15
$20
$25
$30
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$15.7
$17.7
$10.6
$8.8
$6.9 $7.4 $7.9
$9.7$10.9 $11.0
$20.3
$12.2$13.0
$11.4
$9.5
$11.2 $11.6
$17.8
$20.9
$26.0
Cash Revenue Backlog Share Price
Share
Pri
ce n
Dollars
($ in
mill
ion
s)
Highest new contracts in history led to highest
Backlog in historyImproved Book-to-Bill
ratio due to large, long-term Enterprise deals =
Stability
Flat share price =
opportunity for value
creation
Contin
ued
Growth
Confidential – 32
Public Company Comparables
Company
Closing Price Market Enterpris
eBusiness Enterprise
Value/
5/28/2015
Value (MM)
Value (MM) Revenue EBITDA
Medidata Solutions, Inc. $57.24 $3,159.36 $3,105.55 8.9x 78.6x
Merge Healthcare Incorporated $4.62 $446.81 $701.83 3.3x 19.4x
OmniComm Systems Inc. $0.20 $18.44 $42.79 2.5x NM
Veeva Systems Inc. $29.00 $3,817.40 $3,388.89 10.1x 41.6x
Minimum $0.20 $18.44 $42.79 2.5x <0x
Mean $22.77 $1,860.50 $1,809.77 6.2x 46.5x
Median $16.81 $1803.09 $1903.69 6.1x 41.6x
Maximum $57.24 $3,817.40 $3,388.89 10.1x 78.6x
DATATRAK $7.01 $8.96 $6.64 0.6x NMAll data sourced from S&P Cap IQ or calculated by Alpha IR Group
Confidential – 33
5 Reasons to Invest
Unparalleled Technology Platform - Unified database is pure integration
Leading Growth Indicators - Backlog, new contract sales, enterprise agreements all increasing
Balance Sheet Dramatically Improved- No long-term debt, strong cash balance
Growth Initiatives in Place- Mktg programs successful, new CRO relationships, growth in APAC
Share Price does not Reflect Fundamental Value
#1
#2
#3
#4
#5
from Concept to Cure
with DATATRAK ONE
DATATRAK InternationalCleveland, Ohio Bryan, Texas Cary, North CarolinaChicago, IllinoisPlymouth, Minnesota
+1.440.443.0082www.datatrak.com
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