jefferies 2017 global healthcare conference (nasdaq: ttoo) june 7, 2017 · 2017. 6. 15. ·...

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

T2_201_v10_0117

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.

http://www.sec.gov/


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


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


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


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


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


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


• 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


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


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


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


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.


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+


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