Презентация на тему: Химэксперт CIS F12

February-2013 LIFE RUSSIA Business UpdateFY12 Review, 2013 Outlook04.02.2013, Khimexpert

LIFE Distributorship

Sales, Support and Marketing Organization

DEMO LAB

Top Priorities to drive growth in 2013Organizing seminars and workshops for educating customersDeveloping position in Applied Markets – clinical, pharma, food testing, etcDeveloping new markets by bringing NGS solutions into clinical research (partnership with AlcorBio)Developing strategy and structure for Invitrogen salesRegional structure development DemoLab opening

Market Analysis and Situation

NGS Instruments and ConsumablesFast growing market – big interest to IonProton and IonTorrent:Total instruments sales in FY 2012 ~2740k$ (in FY11 - 2020k$), >35% growth.Major competitors – Roche and Illumina. Their argument – weak support of LifeTech products. Roche has got medical registration in July 2012. Illumina has an exclusive distributor Interlabservice who has strong aggressive and sometimes unfair sales strategy.Our priorities - Developing knowledge and educating existing and potential customers. Being fast with newest instruments and consumables available at the market.“Our” activities – support to existing customers, promotion at all major scientific events, exhibitions, marketing activities. Creating of strong NGS support team.Receive medical registrations for IonTorrent and IonProton.

CE Instruments and ConsumablesMarket situation – still growth:Total instruments sales 2357k$ (in 2011 2095k$, ~12% growth)Competitive landscape – less competitive area. Therefore lot of resellers ready to sell this type of equipmentIn several cases Ministry of Health has purchased Beckman“Our” priorities – shortening delivery time, increasing the volume of consumables available at our warehouse in Moscow“Our” activities – support to existing customers, promotion at all major scientific events, exhibitions, marketing activities + demo laboratory developmentIssues and Needs with LIFE – medical registrations for some kits applicable in clinics (KRAS/BRAF, Cystic Fibrosis etc.).

QPCR Instruments, Assay and ReagentsMarket situation – growth due to aggressive pricingGood discounts for instruments bought on stock gives us a possibility to compete with other vendors.Total sales for instruments ~900k$ (in 2011 633k$, 42% growth)Competitive landscape – still tough to sell stand-alone. To promoting QPCRs into clinics we need complete solution: instrument, software and kits with medical registration.We gave 7500 and StepOne Plus to test and check their diagnostic kits. Their conclusion:Instruments are to difficult to medics because of complicated s/w. They used in diagnostics only after optimization.

PCR Instruments, Assay and ReagentsMarket situation – very competitive market. Instruments usually sold as part of package of LiteTech instruments. Total sales in 2012 ~270k$ (in 2011 233k$, 16% growth)Sales of 9700G model is forced by growing HID marketVeriti is competitive on the market only with good discount.We have an ability to sale this model only when we buying pack of 5 units minimum with special discount.

HID Kits and InstrumentsMarket situation – still very centralized market. Most of all customers are government structures.Our sales in 2012: instruments 720k$, consumables 1481k$, COPAN cards 966k$.Together with Copan and LT achieved good reputation in FSIN Waiting for announce of tender for this year.Together with LT achieved good reputation in IC.Waiting for opening of three new regional labs.Successful participation in regional tenders for HID consumables in the end of 2012. Established good relationship with many of regional ECC MOI (20 from 36 expert criminalistics centers).Our priorities: to continue our work with all customers.

Invitrogen products: Cell Biology, Protein Analysis, Cloning, Transfection. Working with this products just half of year.Sales ~85k$ (lots of small orders)Complicated products from point of customer clearance (needs many permissions for serum)“Our” activities – promoting Invitrogen on conferences, prepare printed materials for mailing, organize small seminars in regions.Issues and Needs with LIFE: Shortest time of deliverySpecial discounts to be competitiveHelp with some documents for customs clearance

Extraction and Purification Market situation – mainly HID market due to the high volume of analysis (manual extraction is used in areas where low volume of analysis is required)Competitive landscape: Thermo Fisher (registered analogue of MagMax), Tecan, Epimotion, Qiagen.Issue with LT: medical registration for MagMax to promote in clinical market.

Food Safety and Animal HealthMarket situationCompetitive landscape“Our” priorities“Our” activities Participated in Obolensk and Stavropol seminars (Obolensk and Stavropol as a part of Russian Committee of consumer supervision structure) Issues and Needs with LIFE:registration of sets required;reliable delivery terms for GMO kits.

Biologics and Pharma Analytics - analysis in progressMarket situation – emerging market with high potentialCompetitive landscape “Our” priorities“Our” activitiesIssues and Needs with LIFE: not enough information form LT about key sales potentials.

2012 Review

Growth in instrument sales 29%

Growth in consumables sales >95%!

2012 Financials Plan: 12mln$ Achieved: 12 255 652,42$ (2011: 8 228 772.00 $)Absolute 4 026 880.00$ and ~49% By major product lines – analysis in progressNGS Instruments ~2740k$ (in FY11 - 2020k$) >35% growthNGS Consumables 901560$ (in FY11 – 224170$) 4 times CE Instruments 2357k$ (in 2011 - 2095k$) ~12% growthCE Consumables 1086966,71$ (in 2011 - 1021965.00$) 6% growthQPCR Instruments ~900k$ (in 2011 - 633k$) 42% growthQPCR Consumables 246k$ (in 2011 - 278k$) less on 12%Total for MCB (Invitrogen) about 85 k$HID consumables 1 481 258.00$ (in 2011 - 871033$) 70% growthFood Safety and Animal Health >100k$Service 95522$

2012 CommentaryGood growth compared to 2011Good structural development and shearing responsibilities. Hiring plan successfully performed (hired: 5 Sales/1 Support/1 Tender/1 Logistics specialist)Good growth in NGS consumables means that our instruments are in use.Start focusing for clinical field additionally to scientific.Perfect performance of FSIN project.Strong growth in HID field. Achieved good reputation for lots of regional MOI labs as performed shipments in short period of delivery.

Major Projects

Major Projects for 2013 RAS has won the tender for three end-users.Brief description: 2 x 3500, 1 x IonProton$ Value – ~700k$Expected closing Q1, 100 % of winningCritical success factorsActions achievedActions planned and timelinesNeeds from LIFE – special letter for RAS with pricing.

Major Projects Investigation committee plans to open three new regional labs with complete list of HID instruments. Next purchase of HID kits in 2013 for IC for already 8 labs.Brief description: three sets of HID instruments $ Value ~1mln$ (instruments) + 1.5mln$ for HID consumables in 2013Expected closing Q4, % of winning – 90% winningCritical success factors Actions achieved – customer loyaltyActions planned and timelinesNeeds from LIFE – the same pricing policy as in 2012

Major ProjectsFSIN – just the same portion of FTA cards kits (~210k)Brief description 210000 FTA card kits$ Value - 1 mln USD Expected closing Q2, % of winning – 75% winningCritical success factors – possible competitionActions achieved – customer loyaltyActions planned and timelines – Q2/Q3Needs from LIFE – the same pricing policy as in 2012Needs from LIFE – short delivery terms

Major ProjectsKids Hematological clinical center: already delivered IonProton from warehouse in Q1Waiting for 3500xl + PGM + one more IonProton (probably) $ Value - USD 500k – 1 mln$Expected closing Q3/Q4, % of winning – 60% winningCritical success factors – conection to Mr. GovorunActions achieved – already delivered IonProton from warehouse in Q1Actions planned and timelines – Q4

Major ProjectsEndocrinological scientific center Brief description – 3500, 3500xl, IonProton, QuantStudio$ Value ~1200k$Expected closing Q4, % of winning – 60% winningCritical success factors - budgetingActions achieved – customer loyalty, already shipped 5500xl and PGM in 2012Actions planned and timelines – Q4 2013

Major ProjectsAlcorBio is going to finish development of diagnostics panels for PGM in Q1. Than get registration in Q2. With this we can approach clinical market with PGM for prenatal diagnostics.Brief description – PGM + AmpliSeq$ Value - from 150 to 500k$Expected closing Q4, % of winning – 40% winningCritical success factors – achievement of medical registration the new kit (AlcorBio), good pricing from LT for PGM consumablesActions achieved – the kit is almost ready, the special software for clinics is done.Actions planned and timelines – Q4 and further.

Needs and Issues

Needs & IssuesMedical registration for certain products: PGM, Proton, QuantStudio, Attune, diagnostic kits.Consider promo actions for most popular products (7500, StepOnePlus, Veriti and Invitrogen)Regular updates on new products, upcoming promotionsImproving of local sales and support team in Rep. office.Establishing well running order-handling process (after transferring on E1 no one order was entered).Possibility to order small consumables via electronic system similar to e-commerce.Training for new employees.