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LSI Europe '24 Summit

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nRichDX, Shaun Sanders, Investor Relations Advisor

Speakers

Shaun Sanders

Shaun Sanders

Investor Relations Advisor, nRichDX
Read Biography
An emerging leader in the liquid biopsy sample prep market, delivering to downstream molecular testing up to 75X more target material (ctDNA, CTCs, exosomes, etc.) than existing sample prep systems.

(Transcription)

Shaun Sanders  0:03  

Hello, everyone. So it is my pleasure today to share with you nRichDX. Unfortunately, the CEO Bill Curtis couldn't make it here today due to a scheduled medical procedure. But if you were here today he tell you about his 30 years of experience in the health care industry. He'd also tell you about his successful previous startup in the the molecular diagnostics industry that went from $4 million to $9 million in revenue before successfully exiting to Sonic healthcare. Now, it was at that, that startup that he realized the potential of liquid biopsy to usher in a new era of precision medicine. The idea behind this precision medicine is that you can transform an otherwise terminal illness like cancer into a manageable chronic illness that can be treated through proactive monitoring, proactive treatment, the idea is instead of cutting into a tumor, if you can find it, you look for the markers that leaves into your bloodstream inside your your urine. So if you can imagine a tumor, it will release these little biomarkers as target material that you can pull out through this liquid biopsy of urine or blood. The issue is, if you're looking for an early stage cancer, those early stage cancers don't release a lot of this target material. So when you want to find them, they are exceptionally hard to find. You can think of it this way, when you're looking for cancer, you're essentially looking for something called circulating tumor DNA, or CT DNA. And so there it is really hard to find really hard to find incredibly rare in samples. In fact, it's so rare that in up to 50% of the test performed by our competitors, it's either completely missed, so the test is just wrong, or it's just insufficient. So they're, they're not able to give you a result, how could that be in something so important? The reality is that the technology that we're using today wasn't built for this, the technology was essentially built for bacteria, which is everywhere. And when you're hunting for a target that's everywhere, you don't really care about things like precision, or sensitivity or accuracy or sample sizing, because you don't need to. But when you're trying to use that for something rare, like a rare target material, you start to run into these problems. And so these are the two main systemic deficiencies in this industry that we are the first ones to really solve. Let's talk about the first one. As I've already mentioned, insufficient target material is one of the main issues. But it isn't just that the CtDNA are incredibly rare. It also comes down to how our competitors are processing it. So if you can imagine our competitors essentially process their samples through a series of vessels that they process and pour and refine and go down the line. The issue isn't sort of like a milkshake. When you pour from one glass to another, you're gonna be left with a little bit of residue in that previous vessel that you then throw away. So our competitors pour, and they process and they toss, and they pour, and they process and they toss. And they pour and they process and they tossed until the in the end, our competitors throw away 50% of the target material that they were looking for 50% of that CT DNA that's already so rare is tossed in the trash simply by the way that our competitors are processing this material. The second issue is that the market is trending towards larger sample sizes that our competitors just simply can't keep up with. So the luck, the loudest largest voices in this area are demanding sample sizes of 10 ML, 20 ml or more. But the reality is that on average, our competitors can only typically directly process about five ml without having a result to the transferring step pooling other more complicated issues that started to complicate things and reduce your accuracy. So introducing our solution. So the nRichDX solution is a patented IV D labeled Sample Prep platform that essentially increases both accuracy and sensitivity in looking for this target material. So we can process samples from one ml to 20 ml.

 

Unknown Speaker  4:24  

We also have an 80 to 90% recovery rate when it comes to that target material that we're seeking out. And what you're looking for here, which I apologize for the slides that seem to have gone a little bit wonky. What you're looking at here isn't a process of of vessels that are being processed vessel, the vessel. All of this happens in a single patented cartridge, which means there's no transfer steps. There is no pooling. There is no issues of trying to figure out where you're having those losses along the way. In other words, what we're able to do is capture more material which allows others to bet or detect and try to identify those cancers at stages where our competitors would just fail, they wouldn't be able to do so let's do a little bit of a head to head. So if you were to take a five ml sample and process it through one of our competitors, you would result in about three of those important target material CT DNA. Now, as a reminder, you need 10 of them in order to have an accurate diagnosis of cancer. So three is about what you would get from one five ml sample of a competitor, that same five ml and our product would have 65% More target material identified, that gives you five for five, to hit that 10, you add five milliliters more into that same cartridge and process it. Or if you want to try to seek out and discover earlier stages of cancer, add more material up to 20 ML, no transfers, no pooling higher efficiency. And it's not just me saying this. So we have been independently validated by some of the most prestigious names in the medical world. And I wish I could share them with you. And I'm happy to do so under NDA. But what I can tell you is that in many of the cases, not only did they prove that we are better and outperform our competitors, the leading market share leaders right now. But they transferred over to our superior solution. In fact, our sales pipeline now includes 30 of the largest med tech companies in the world. We're not just limited by cancer detection as well. We have a broad applicable product that can be used to basically process any type of liquid. And it can be programmed to identify an isolator or isolate these target materials from everything from infectious diseases to COVID and wastewater. The market that we're going after is a tam approaching $26 billion in the liquid biopsy space. But specifically the psalm we're going after is the $5.7 billion oncology Sample Prep, which is broken into early screening, therapy selection, treatment monitoring and recurring monitoring. When you look at the competitive landscape, there's some familiar faces up here. But you should also notice that we outperform them when it comes to maximum input volume. The fact that we again require no transferring, we require no pooling, the fact that we provide a more a more accurate solution at equal or lesser price. Our system right now has basically two systems, we have the semi automated we have the semi manual, we'll have a fully automated system developed within 12 months of receiving funding. Now the star of our business model is the consumable with 70% margins. Everything you've seen so far is protected under numerous patents in every major global market. Moreover, our patents are extremely broad. So our patents create a moat around any attempt to basically process a sample within single vessel, which again, is where the market is heading for all of those efficiencies, and we own it. The only thing more impressive than the technology is the team that's brought it to life. With over 200 years of experience 150 successful product launches, this is the ideal team of industry leaders that you would want to drive something like this towards an exit. So far, we've raised $13 million on convertible notes. But today, we're here to raise $20 million, that will be primarily used to expand awareness of the product and pre sales, it will also be used to finish the automated processing system that we're working on. And ultimately it will be used to increase growth and better position ourselves for an exit or liquidity event that we predict that this will be the last raise we need to raise before having that liquidity event between three to five years from now. Our projections show 55% EBIT margins by year five, driven by those consumables and that automated system that we're developing and are likely acquires. To be honest, we couldn't even fit them all on the screen. And that might seem a little bit optimistic. But the reality is that this is a very aggressive m&a market. There have been numerous large acquisitions over the years, and in the last two years alone, there have been more than $7 billion in acquisitions. Again, we're the only system in this space that are addressing those two primary problems facing this industry. We are also active. We exist in a highly aggressive m&a market with extremely healthy margins. And we have an amazing IP moat around our technology that will protect us for many years to come with that said thank you so much for your time and hope you'll join me in bringing in this new era of precision medicine Thank you

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