The Power of Information

December 2014 Ryan Ashton – Co-founder and CEO

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Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements that involve significant risks and uncertainties, including those discussed in this presentation and others that can be found in the “Risk Factors” section of the quarterly report on Form 10-Q of Great Basin, filed with the SEC on November 14, 2014. All statements other than statements of historical facts, included in this presentation regarding our strategy, future operations, future financial position, future net sales, projected expenses, products’ placements, performance and acceptance, prospects and plans and management’s objectives, as well as the growth of the overall market for our products in general and certain products in particular and the relative performance of other market participants are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievement to be materially different from those expressed or implied by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or will occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date hereof or to conform these statements to actual results or to changes in our expectations.

Focus on Small – Medium Hospitals

Great Basin - Primed for growth

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§  Positioned for growth •  >100 Customers worldwide •  Sales grew 83% YOY in 1st 9 months of 2014 •  One FDA-cleared test – 2nd submitted to FDA •  Two add’l tests approaching clinical trial

§  Only Company with technology for 3 Keys to Success •  Sample-to-result •  Low cost •  Menu of low-plex and multiplex tests

§  Rich Product Pipeline •  Low-Plex

•  Group B strep – 510(k) submitted •  E Coli – Trial start in Q1 2015 •  SA Pre-surgical Screen – Development complete Q2 2015

•  Multiplex •  Staph blood Panel – Q4 2014 trial start •  GI Panel – (food borne) 1st half 2015 trial start

 

The Target Market: Hospital Labs

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Tests §  Gastrointestinal Infections: 20-25MM §  Blood Infections 15-25MM §  Respiratory Infections 30-40MM §  MRSA Surveillance 40-60MM    

100MM – 150MM tests World Wide > $1.25B - 1.5B Addressable Market

Source:    Company  es0mates  

Industry undergoing a paradigm shift to molecular

Specific Example: Blood Sepsis

MDx Testing: Improves Outcomes & Lower Costs

Problem:

§  Hospitals are responsible for all treatment costs for Medicare patients that get Staph Aureus or MRSA infections

§  Hospitals are seeking cost-effective, automated solutions for prevention and detection

Outcomes:

§  MDx allows for rapid diagnosis and treatment

§  Reduces incidence and spread of disease

Costs:

§  Length-of-stay reduced by 6.2 days

§  Saves an average of ~$7,000 per incidence

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Still Waiting for the right solution

Target Customer – <400 Beds

~2,000 hospitals performing molecular tests

Source:  AHA  Annual  Survey  

2,577  1,005  

1,119  272  

<100  

100-­‐199  

200-­‐499  

>500  

US  Hospitals  By  Number  of  Beds  

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Customers want three things in MDx:

The Unmet Need

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                   1.  Automated  workflow  

                   2.  Powerful  test  menu  

     3.  Ra0onal  test  and  instrument  cost  

 

We  believe  fewer  than  50%  of  tests  in  a  hospital  lab  are  molecular.  Top  two  reasons  for  not  switching  are  cost  and  ease  of  use.    

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Highly  SensiAve  End-­‐Point  DetecAon  –  Creates  industry-­‐leading  menu  versaAlity  and  cost  

Standard  DetecAon  

HRP

HRP

amPED  DetecAon  

§  Inexpensive and highly scalable ($0.10 per chip today) §  Up to 64 targets per chip §  Sensitivity adequate for direct from specimen detection

Designed with the Customer in Mind

Our MDx platform -

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§  Executes the test §  Provides electronic output to the clinician §  Off-the-shelf components keeps cost low

§  Single-Use §  Up to 64 answers per specimen §  Same cartridge for all new tests §  Designed for low-cost and manufacturability

Analyzer

Cartridges

Leadership in the “Three Cs”

Great Basin Offers Winning Solution

Cost: Low-Cost

✓   ✓  

Content: Low-plex Multiplex

✓  

✓  

✓    

   

✓  

✓    

 

   

✓  Convenience: Sample to Result

✓   ✓   ✓   ✓  

(1)  

(1)  S0ll  in  development   10

Customer Experience: Workflow is Faster and Easier

How We Win: Easy to Use “Sample to Result”

Results   Results   Results  

Reader  

2  Walk-­‐Away  

Points  

Results  

6-­‐10    Hands  on  Steps   18-­‐25  

Hands  on  Steps  16-­‐23  

 Hands  on  Steps  

Instrument   Instrument  

Instrument  

Instrument  

Results  

Instrument  

3-­‐5  Hands  on  Steps  3-­‐5  Hands  on  Steps  

2  Walk-­‐Away  

Points  

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Labs need both Low-plex and Multi-plex: Only GBSN delivers both

Broadest Potential Menu in the Industry

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Multi-Plex Market More Answers/Higher Cost •  Gram Positive Blood Sepsis •  Gram Negative Blood Sepsis •  Respiratory •  Stool •  Vaginosis/Vaginitis

Low-Plex Market 1-3 Answers, Lower Cost •  MRSA •  C. diff •  CT/NG

•  Meets all needs of the Lab •  Provides pricing power •  Allows for Trojan Horse placements to unseat competitors

Great Basin Product Pipeline

New Tests Make our MDx Platform More Attractive

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Available Now

Available Jan-June 2015

Available July-Dec 2015

C. diff

Group B Strep

Staph ID/R

STEC

MRSA/SA Pre-Screen Food-borne Pathogens

Generate Recurring Revenue Stream

The Affordable Model – “Vending Machine”

§  No long capital equipment sales cycle

§  “You pay only for a result”

§  Recurring cartridge sales

§  Follow-on tests: Faster, easier sale

 

No-cost “vending machine” model drives faster market share growth

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71%   Molecular  =  71%  win  rate  *  

Customer Response Has Been Very Positive

3 Criteria Met = Success

*Decision  by  lab  manager  to  switch  to  Great  Basin  during  12-­‐month  period.    

Non-­‐Molecular  :  Example  of      win  rate  *  

Molecular:  Example  of    win  rate  *  

ü   Selling  model  generates  high  success  rate  ü   Short  Ame  from  evaluaAon  to  decision    

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Wins   Wins  

Intend to Develop Rich Menu of Low-plex and Multi-plex Tests

Great Basin Pipeline

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2014   2015   2016   2017   2018  

2  6  

12  

20  

1  

4  

8  

11  

14  

Mul0-­‐plex   Low-­‐Plex  

1  

6  

14  

23  

34  

Potential Annual Revenue per Customer*

New Products’ Revenue Potential

*Based on assumption that customers reach projected usage levels of all five tests, including four tests pending at the FDA or currently in development.

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$-­‐

$50,000  

$100,000  

$150,000  

$200,000  

$250,000  

Q4  2014 Q2  2015 Q4  2015 Q4  2016

SA  Pre-­‐Surgical/MRSA  Nasal  Screen

Food  Borne

Staph  ID/R

Group  B  Strep

C.  Diff

Financial Highlights

§  GSBN completed IPO for $8 million in stock and warrants

§  As of September 30, 2014 –  Cash Balance - $0.7 million

•  $7.1 million pro-forma including net proceeds from the IPO(Note 1) –  YTD Revenue = $1.2 million

•  Compared to $0.8 million for 12 months ended 12/31/13 (already up 50% vs. full year 2013)

–  3rd Quarter Revenue = $0.4 million •  83% growth YOY •  Recurring revenues

–  5.1 million shares outstanding

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Note  1  –  Proforma  cash  balance  

Commercially-Focused Management Team

Ryan Ashton Chief Executive Officer

Robert Jenison CTO, SVP - Research

Jeffrey Rona Chief Financial Officer

Laurence Rea Chief Engineer

Sandra Nielsen VP - Sales and Marketing

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Why GBSN will win

Summary - Primed for growth

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§  Large under-penetrated market §  Technology designed for the 3 Keys to

Success §  Rich Product Pipeline increases Revenue

per Customer §  Strong Management Team

The Power of Information

Thank You