1. Roche US Diagnostics Event
Indianapolis, May 17, 2005
Cotton, Point-of-Care 1
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US Point of Care Diagnostics Overview
Rod Cotton
Vice President and General Manager
Point of Care Diagnostics, USA
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Point of Care Testing market and Roche
Strategy and future drivers
2. Roche US Diagnostics Event
Indianapolis, May 17, 2005
Cotton, Point-of-Care 2
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Point-of-Care Testing (POC): Definition
Immediately actionable healthcare information outside central
lab … from diagnosis, to monitoring, to therapy adjustment
On-site testing:
• from the hospital to the home
Tests answering urgent questions:
• acute and chronic conditions
• diagnosis and therapeutic monitoring
Specific test needs:
• fast
• Simple-to-use technology
• reliable and reproducible results
ADMIT MOVE DISCHARGE
PREVENTION CURE
Point-of-Care Testing
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Three key customer segments
Improving clinical and economic outcomes
across the continuum of care
Primary Care
Compliance / Convenience
real-time therapy
adjustment
Patient Monitoring
Compliance /
Convenience real-time
therapy adjustment
Hospital
Fast therapy adjustment
Critical Care Work Area
Defined by medical indications
Decentralized hospital testing
of selected parameters
POCT used to test whole blood
samples in key locations
throughout the hospital
Physician’s Office Work Area
Defined by key MD user groups
• Cardiologists
• Intern. Medicine Physician
• General Practitioner
CLIA waived POCT systems used
for patient screening, therapy and
monitoring activities and decisions
Patient Self-Testing
Defined by patient
Evolving treatment model
(e.g. anticoagulation from
clinics to the patient's home)
Whole blood samples (less
invasive)
POCT using the blood
glucose monitoring
approach
"Reactive" Care Therapy monitoring Monitoring and prevention
3. Roche US Diagnostics Event
Indianapolis, May 17, 2005
Cotton, Point-of-Care 3
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Diagnostics
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Rapid market growth
Driven by clinical, social and economic pressures
coupled with new technologies and IT capabilities
Government/ Political
Focused on reducing hospital length of
stay and patient treatment via out-patient
care models (clinic, homecare, etc)
Technology
Making lab-quality tests available close to
patient (MD office, patient home, ICU) and
delivered by non-laboratory personnel
Social/ economic pressure
Increased patient empowerment and health
consciousness
Third-party payers driving improvements in
compliance and overall cost healthcare
reductions
Clinical/ economic outcomes
Focused on enabling and quantifying value of
more effective and efficient care (e.g. TGC,
NICU Billirubin, PST-coag)
Decision makers
Physicians, lab directors, nurses, point of
care coordinators, hospital administration,
IT departments
Information Technology
Increased use of EMR’s and other data
mgt. tools to capture all testing and
associated costs throughout healthcare
system
Focused on faster delivery of test results to
drive faster therapeutic intervention
POCT
Market
Drivers
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Major segments US POCT Market
2003 through 2008 (m USD)
Dynamic and growing market
Select segments offering double-digit growth
Total POCT*
Dedicated Primary Care
Systems (Lipids, HbA1c)
Cardiac Markers
Coagulation
Dedicated Professional
Glucose Testing
Urinalysis
2003
1,685
252
111
146
105
61
2008
2,288 E
420
218
310
177
68
11
16
11
7
8
CAGR [%]
2
289
300
Blood Gas/Electrolytes
3
* Does not include manual tests e.g. pregnancy, infectious diseases and STD
Source: Boston Biomedical Consultants, EAC Study, Roche research
4. Roche US Diagnostics Event
Indianapolis, May 17, 2005
Cotton, Point-of-Care 4
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Roche Point of Care
Broadest decentralized testing menu
Radiometer
Nova Biomedical
Elect.Arkay / Menarini
ITC
expectedIL
Dade Behring
Cholestech
expectedBiosite
Bayer
D-DimerAxis Shield
Abaxis
Abbott
planned
*Roche
UAAPTTACTPT
Lipids &
OthersStrokeCMHbA1CbG
Meta-
bolitesBGECompany
Competitive Landscape
Source: Provalis * product in Centralized Diagnostics business area; Roche major manufacture for other Diagnostic companies
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The broadest portfolio
Addressing Point of Care Testing customer needs
Product
Lines
Businesses
• Reflotron Systems
• OMNI Systems
• IT Solutions
• CoaguChek S
• Accu-Chek Glucose
• Accu-Chek Inform
• Accutrend GC(T)
• Urisys 1100Cardiac Reader
Research
Molecular
Lab
Central
Lab
STAT Lab HosPoC POL
Patient
Mon.
Diabetes
Mgmt.
Patient CareProfessional DiagnosticsLife ScienceMarkets
Customers
BAs RAS RMD RCD RNP (POCT) RDC
Coag. Mon.Primary CareHosp. POCHosp. Glu.
Life Science Professional Diagnostics Patient Care
5. Roche US Diagnostics Event
Indianapolis, May 17, 2005
Cotton, Point-of-Care 5
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Roche
19 %
Others
81 %
Roche maintains overall share leadership
Among key diagnostic manufacturers, Roche clear
market leader in 2 of the 4 major POCT segments
Cardiac Markers
Coagulation
Dedicated Professional
Glucose Testing
Blood Gas/ Electrolytes
Roche Abbott J&J
BayerBiosite
U.S. POCT Market 2004
1.7 bn USD (+8 %)
Source: Boston Biomedical Consultants, EAC Study, Roche analysis
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Point of Care Testing market and Roche
Strategy and future drivers
6. Roche US Diagnostics Event
Indianapolis, May 17, 2005
Cotton, Point-of-Care 6
r
Diagnostics
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Strategic imperatives to succeed in U.S.
Drive decentralization of testing
Innovative use of information and technology to
alter clinical practice and improve economic
outcome
Leverage reach and penetration through
acquisitions and alliances to expand offerings
Drive testing from lab to patient self-testing
(prevention – e.g. PST-Coagulation)
Deliver products and services enabling
individualized testing and therapy
Grow market share with innovative new
solutions and movement of tests from lab closer
to the patient
Leverage tremendous market share, growth,
distribution model, installed IT systems and
other assets to expand penetration across test
segments
New
markets
Core
business
Future
growth
drivers
Strengthen
Shape
Stretch
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Interim/
Off-site
Driving decentralized testing
Focus investments on both short and long-term
opportunities across the continuum of care
• Increase investment in stand-alone POC business
• Develop strong clinical and economic sources of data to
quantify value
• Expand product portfolio tied to unmet customer needs
Home
POL/
Clinic
Hospital
POC
Lab
7. Roche US Diagnostics Event
Indianapolis, May 17, 2005
Cotton, Point-of-Care 7
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Historically, 3 separate businesses
focused on products
Today, 1 business focused on key
disease and treatment segments
Hospital
Point
of Care
(HPOC)
Near
Patient
Testing
(NPT)
Point of
Care
Diagnostics
Roche Point-of-Care Diagnostics
Globally aligned and focused on growth
DCHG
Hospital bG
Strips
Meters
Lancets
NPT
Coag (strips/meters)
UA/Primary Care
Cardiac
Elecsys/Integra
HPOC
BGE
Instruments
Reagents
Diseases
Diabetes
Cardiac
Cardiovascular
Cancer
Metabolic
Treatment Segments
Point of Care Monitoring
Acute Diagnostics
Intensive Care
Ambulatory Care
Diabetes
Care
Hospital
Group
(DCHG)
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Best-in-Class: Our advantage
We will use our strong leadership position in POC Glucose
and Coagulation Monitoring to drive future growth
Assets
People
• Highest rated POC sales and service team
• Passion for the Point-of-Care opportunity
Leadership
• History of POC share leadership
• Broadest POC portfolio offering
• Long-standing POC customer relationships
Portfolio
• History of technology innovation
• R&D resources to maintain strong portfolio
Structure
• Globally aligned and focused
Reach/ Distribution
• Most widely contracted with National GPO’s
• Most widely contracted in distribution
8. Roche US Diagnostics Event
Indianapolis, May 17, 2005
Cotton, Point-of-Care 8
r
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Market leading portfolio and assets
Our lead in reach, innovation, reputation and
performance today …
Diabetes
---------
Blood
Glucose
Intensive Care
---------------
Blood Gas
Electrolyte
Cardiovascular
---------------
Coagulation
Monitoring
Cardiac
---------
Cardiac
Markers
Accu-Chek™
Inform System
Omni-S SystemCoagu-Chek™
System
Cardiac Reader™
System
• Hospital share leader
• #1 product
• #1 sales force
• #1 service
• #1 GPO reach
• #1 Connectivity
• Configurable system
• Superior IT solutions
• Innovative features
• Remote QC mgt.
• 90% POL share
• #1 product
• Largest sales force
• #1 service
• Complete coag
monitoring portfolio
• 1st cardiac rapid assay
• Only company with POC and
lab cardiac markers
• Novel expandable technology
(Myoglobin, TnT)
Strategic Leverage Drive Growth
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Diabetes
---------
Blood
Glucose
Intensive Care
---------------
Blood Gas
Electrolyte
Cardiovascular
---------------
Coagulation
Monitoring
Cardiac
---------
Cardiac
Markers
Wireless RF
Testing System
Next Generation
BGE System
Coagu-Chek™
System
Cardiac Reader™
System
Note: Above illustrations are for illustrative purpose only and are not be interpreted to represent current or future products
Ensuring future growth
Products in development. Our innovation to ensure
leading position and products tomorrow …
9. Roche US Diagnostics Event
Indianapolis, May 17, 2005
Cotton, Point-of-Care 9
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Strategic imperatives
Imperatives Actions
Drive decentralization of
testing from lab to
patient
• Invest in health economics to provide
evidence of better patient and economic
outcomes
• Drive adoption of care standards across
the POC testing spectrum
Obtain expanded
reimbursement for
patient coagulation self-
monitoring
• Obtain PST specific CPT Codes
• Secure expanded indication coverage
Leverage strong
Hospital position (blood
glucose, IT connectivity)
to grow BGE and CVD
businesses
• Expand Hospital blood glucose
• Increase OMNI S penetration
• Launch NT-proBNP on cardiac reader
