I worked closely with the Symyx CEO to position the company as a pure-play software company for M&A. Here is a presentation that I developed and produced for the CEO to present at the JP Morgan Healthcare Conference, the Jefferies Global Healthcare Services Conference and to selected investment banks in early 2010. On April 5, 2010, Symyx announced that it would merge with Accelrys, and the merger was completed on July 1, 2010.
2. POSITION SYMYX TECHNOLOGIES FOR M&A
In 2008, I accepted a marketing position with Symyx Technologies (NASDAQ: SMMX). My initial
role was to integrate the marketing group from the recently acquired MDL Information Systems,
a producer of research informatics software, into the Symyx marketing group. The following year
I led a unified team in the development and execution of an integrated go-to-market strategy
that helped grow revenue and bookings for the Symyx Electronic Laboratory Notebook (ELN) by
93% and 49%, respectively, increase market share from 10% to 15%, and double brand
awareness from 22% to 45%. In 2009, the company’s corporate strategy shifted, and Symyx was
restructured from hardware, software and services for chemical, energy and life sciences markets
to a research informatics company primarily serving the biopharmaceutical market. I was part of
a leadership team that explored and evaluated mergers and acquisitions, and I worked closely
with the CEO to position Symyx as a pure-play software company for M&A. Following is a
presentation that I developed and produced for the CEO to present at the JP Morgan
Healthcare Conference, the Jefferies Global Healthcare Services Conference and to selected
investment banks in early 2010. On April 5, 2010, Symyx announced that it would merge with
Accelrys, and the merger was completed on July 1, 2010.
4. 2
Forward-Looking Statements
Non-historical statements in this presentation are forward-looking
statements under Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements involve risks, uncertainties and
assumptions, including those we describe in our comments today, in
our Form 10-Q for our quarter ended September 30, 2009 and in our
other SEC filings. If any of these risks or uncertainties materialize,
or any of our assumptions prove incorrect, our results could differ
materially from our expectations expressed in these forward-looking
statements. We assume no obligation, and do not intend, to update
these forward-looking statements except as the law requires.
5. 3
Symyx Technologies, Inc.
SMMX (NASDAQ) 2009 financials
> $150.4M revenue
> $20.2M adjusted EBITDA
> $0.19 non-GAAP diluted earnings/share
> Debt free with >$80M in cash
Markets Served
> Pharmaceutical and Biotech
> Chemicals and Energy
> Consumer and Industrial Products
Since 1996, Symyx Technologies has powered our customers’
laboratories to transform their scientific R&D and achieve
breakthroughs in innovation, productivity, and return on investment.
6. 4
Symyx
Scientific
Databases
Electronic Laboratory Environment
ELN is the Scientist’s Portal to
the Electronic Lab
Search and
find data
In-House
Databases
External
Databases
Design experiments
Monitor experiments
Collaborate with
other Scientists
Analyze results
Register structures, reactions and other data
Compose and publish reports
Symyx powers today’s information-driven electronic laboratory.
7. 5
Symyx Software and Scientific Databases
Symyx software and scientific databases power laboratories with the information
that generates insight, enhances collaboration, and drives productivity.
Information-Driven R&D
> # 1 market position in
– Decision support software
– Chemical sourcing databases
– Cheminformatics
> Leading market position in
– Electronic laboratory notebook (ELN)Symyx is a market leader in electronic
laboratory notebooks, decision support
software, cheminformatics, and chemical
sourcing databases.
Well-positioned to exploit fast-growing,
billion-dollar ELN market.
Future growth fueled by cash generated
from core product lines.
8. 6
Symyx Powers Electronic Laboratories
About 750 company accounts, including the top biopharmaceutical companies.
Customers by
Industry Rank
ELN Decision Support Cheminformatics Databases
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9. 7
$US TAM by Industry for ELN in R&D
Biopharma
35%
Food &
Beverage
4%
Chemicals,
Energy &
Materials
11%
Other
Industrial
Markets
12%
Academic
R&D
19%
Non-
Defense
Government
19%
Industry
Total ELN
Revenue
Biopharma $450M
Non-Defense Government $250M
Academic R&D $250M
Chemicals, Energy & Materials $150M
Other Industrials $150M
Food & Beverage $50M
TOTAL* $1.3B
Source: Atrium Research & Consulting LLC
Biopharmaceuticals is the largest and fastest adopting market segment.
10. 8
An Emerging Growth Opportunity
$100M SAM
$200M SAM
$300M SAM
Overall market growth ≈20%: software license ≈15% and service/support ≈30%.
Source: Atrium Research & Consulting LLC for 2006 through 2010;; 2011 through 2017 projections by Symyx
11. 9
ELN TAM by Major Countries and Segments
0 50 100 150 200 250 300 350 400
US
Japan
Germany
UK
France
ELN TAM ($US million)
Biopharmaceutical Food & Beverage Chemicals & Materials
Other Industrial Academic R&D Government (non-defense)
The greatest growth potential is in the U.S., Japan, Germany, U.K., and France.
Source: Atrium Research & Consulting LLC
12. 10
Software Revenue % by Market and Geography
16%
35%
49%
Asia-Pacific Europe Americas
Country $US
USA 49%
Japan 15%
Germany 12%
UK 7%
Switzerland 6%
France 4%
0
10
20
30
40
50
60
70
80
90
Revenue (%)
Symyx well positioned in the biopharmaceutical market
in the U.S., Japan, Germany, U.K., and France.
Present market and geographic revenue distribution for all software
and scientific database products and services.
13. 11
Discovery
BiologyAnalytical
Chemistry
ELN for R&D Domain Adoption and Market Size
INTRODUCTION GROWTH MATURITY
50%
Adoption Rate
Product Life Cycle Stage
DMPK*
Formulations
Bioanalytical
Pharmacology
Process Chemistry
Synthetic Chemistry
>$200M
TAM
<$50M
TAM
No. 1
Market Position
No. 2 or 3
Market Position
DMPK*
Market Position
*Addressed through
partnership with
Symyx holds #2 overall market position with15% share.
Well positioned to grow share and establish overall market leadership.
2010 Symyx Market Position by Domain
14. 12
High Productivity Research (HPR)
Symyx microscale, high-throughput products enable a single scientist using
micrograms of expensive, early development material to rapidly explore a
broad experimental space and develop directional information in days.
Symyx Divesting HPR in Q1 2010
> New Company
– Substantially all HPR assets transfer
to new company
– New company adequately capitalized
with >90% backlog for 2010
> Symyx Technologies
– $10M note
– $19.5% equity position
– Retains existing rights to royalties
and license fees
Symyx pioneered microscale, high-throughput
experimentation and is a global leader in the
design and installation of integrated workflows
that transform R&D laboratories.
15. 13
Symyx Technologies is Positioned for Success
> Achieve clear #1 position in ELN
> Grow organically and through M&A
> Consistently increase profitability to reach 20%
EBITDA within 2011
In 2010, we will complete our transition from a research-centric business to a
software business well positioned to exploit the emerging electronic laboratory.
16. ABOUT BRUCE PHARR
I live in the San Francisco Bay Area with my wife and son. I hike in the
Santa Cruz Mountains, eat good food, drink good wine, root for the
SF Giants, and indulge a passion for the arts.
I serve as a strategic advisor, senior consultant, and contract
corporate executive with innovative science and technology
companies in life sciences, healthcare, energy storage,
instrumentation, and semiconductors.
I have a track record of helping companies create competitive
advantage, grow revenue and market share, and increase enterprise
value. And I’ve contributed to several successful M&A events. I am a
subject matter expert in basic, translational, and clinical research systems. I have led or contributed to the development
of market and product requirements for biomedical, genomic, and NGS products, written thought-leader white papers,
case studies, and articles for leading online and print publications, and developed and delivered presentations at major
biomedical conferences.
I served as VP, Marketing at Symyx Technologies from 2008 to 2010. I was part of the leadership team that explored
and evaluated mergers and acquisitions, and I worked closely with the CEO to position Symyx as a pure-play software
company for M&A. This included development and production of the presentation delivered by the Symyx CEO, Isy
Goldwasser, at investment bank sponsored healthcare conferences in early 2010. On April 5, 2010, Symyx announced
that it would merge with Accelrys, and the merger was completed on July 1, 2010.