Insulet Nov 16Th Investor Meeting
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Investor Day November 16, 2016 Insulet Investor Day - November 16, 2016 Welcome Deborah Gordon Vice President, Investor Relations and Corporation Communications Insulet Investor Day - November 16, 2016 Investor Day Agenda Welcome Deborah Gordon Opening Remarks Patrick Sullivan Commercial Update Shacey Petrovic Technology Roadmap and Product Innovation Aiman Abdel-Malek, PhD Break (20 minutes) Artificial Pancreas Lunch Panel Moderator: Patrick Sullivan Panelists: Shacey Petrovic, Dr. Trang Ly, Aiman Abdel-Malek, Richard Spector Manufacturing & Operations Update Charles Alpuche Financial Performance Michael Levitz Closing Comments and Q&A Patrick Sullivan Exhibits Insulet Investor Day - November 16, 2016 Forward Looking Statement This presentation may contain forward-looking statements concerning Insulet's expectations, anticipations, intentions, beliefs or strategies regarding the future. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects on Insulet. There can be no assurance that future developments affecting Insulet will be those that it has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond its control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, and other risks and uncertainties described in its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on February 29, 2016 in the section entitled "Risk Factors," and in its other filings from time to time with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of its assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Insulet undertakes no obligation to publicly update or revise any forward-looking statements. © 2016 Insulet Corporation. Omnipod, the Omnipod logo and Podder are trademarks or registered trademarks of Insulet Corporation. All rights reserved. All other trademarks are the property of their respective owners. The use of third party trademarks does not constitute an endorsement or imply a relationship or other affiliation. Insulet Investor Day - November 16, 2016 Investor Day November 16, 2016 Insulet Investor Day - November 16, 2016 Opening Remarks Patrick Sullivan Chief Executive Officer and Chairman of the Board Insulet Investor Day - November 16, 2016 6 The Team Deborah Gordon Shacey Petrovic Aiman Abdel-Malek, PhD Vice President, Investor President and Senior Vice President, Relations and Corporation Chief Operating Officer Advanced Technology and Engineering Communications Patrick Sullivan Chief Executive Officer and Chairman of the Board Dr. Trang Ly Charles Alpuche Michael Levitz Vice President and Senior Vice President, Senior Vice President, Medical Director Global Manufacturing Chief Financial Officer and Operations Insulet Investor Day - November 16, 2016 7 2021 Targets $1 Billion in Revenue (20%+ CAGR) 65%+ Gross Margin Above-Market Profitability Insulet Investor Day - November 16, 2016 8 Insulet’s Right to Win OPPORTUNITY •Large and growing market •Underpenetrated with unique value PRODUCT PLATFORM •Highly differentiated •Convenience, compliance and control •Multiple applications PROVEN PERFORMANCE •Sustainable above-market returns •Experienced and talented team •High quality, reliability and decreasing cost Insulet Investor Day - November 16, 2016 9 Significant Growth Opportunity 4% Share of U.S. type 1 diabetes market 1-2% Share of international type 1 diabetes market 16 Countries today <1% Share of type 2 diabetes market 2 Non-insulin drugs approved with the Omnipod platform Insulet internal analysis, International Diabetes Federation. Numbers are approximate. Insulet Investor Day - November 16, 2016 10 One Digital Platform… Many Products Innovating to Simplify Life Better Control Better Quality Omnipod® Dash Mobile Artificial Today Platform Pancreas of Life Insulet Investor Day - November 16, 2016 11 Proven Performance Transformation to Sustainable, Above-Market Performance Accelerate Build Growth Foundation for Performance Transform 2015-2016 2016-2018 2018-2021 • Assemble talented, experienced • Establish technology development team and scalable operations • Launch new products • Transform strategy & execution • Establish unique, innovative R&D and double addressable market • Drive product quality and platforms • Lower cost through U.S. efficient operations • Secure market access and invest automated manufacturing • Divest Neighborhood Diabetes in clinical data and infrastructure Insulet Investor Day - November 16, 2016 12 Investor Day November 16, 2016 Insulet Investor Day - November 16, 2016 13 Commercial Update Shacey Petrovic President and Chief Operating Officer Insulet Investor Day - November 16, 2016 14 Differentiated Technology in Growing Market Sizable, underpenetrated market with attractive tailwinds Commercial and operational execution driving near-term growth Innovation and Drug Delivery accelerate medium- and long-term growth Insulet Investor Day - November 16, 2016 15 Diabetes is a Worldwide Epidemic 365 Million Patients and $490 Billion Spend by 2030 Global Patients Diagnosed1 (in Millions) Global Diabetes Expenditure2 ($ in Billions) $490 365 $375 171 2000 2030 2010 2030 Global epidemic presents significant unmet need and market opportunity 1. http://www.orgenesis.com/market/market-overview and WHO 2. Economic impact of Diabetes; Ping Zhang; IDF Diabetes Atlas 4th edition Insulet Investor Day - November 16, 2016 16 Omnipod’s Differentiated Platform Simplifies Life Kelly L. Reduces burden Simplifies life Improves outcomes Insulet Investor Day - November 16, 2016 17 Omnipod Significantly Reduces Burden of Multiple Daily Injection (MDI) and Pump Therapy Fewer Injections Fewer Components 80% of the Market Opportunity (Current Target) 20% of the Market Opportunity vs. vs. Omnipod: 1 MDI: 14+ Omnipod Conventional Injections Required Per Pod System Insulin Pump (Average of 4.5/day)1 Globally, majority of market relies on inferior, burdensome MDI as primary therapy 1. Insulet internal data Insulet Investor Day - November 16, 2016 18 Omnipod is Strongly Preferred Brand U.S. Pump Brand Preference by Company 2% 18% Insulet 18% Medtronic Animas 21% Tandem Roche 41% U.S. Pediatric Preference by Product U.S. Adult Preference by Product 3% 5% Omnipod MiniMed 530G 15% 19% Omnipod is #1 preferred 32% Omnipod is #2 preferred 18% product in pediatrics MiniMed Paradigm Revel 7% product in adults Animas OneTouch Ping 12% 21% 22% 10% Tandem t:slim 10% 10% Medtronic Other Models 16% Other Significant opportunity to gain share through product line extensions Source: dQ&A Diabetes Connections U.S.A. Patient Panel Report, Q3 2016 Insulet Investor Day - November 16, 2016 19 Market Opportunity Doubles in Five Years GROWTH IN EXISTING MARKET 2020-21 ACCELERATE GROWTH • Focus on large, growing EU and • U-200 doubles addressable opportunity U.S. MDI opportunity 2018-19 • Focus on Type 1 Diabetes (T1D) • Geographic and product expansion increase Omnipod penetration • Launch of Dash mobile platform INCREASE GROWTH 100K+ Users Today 200K+ Users • Increase in U.S. addressable opportunity with U-500 launch (T2D1) • U.S. market access barriers removed (Medicaid and Medicare) • Artificial Pancreas (AP) launch • Geographic expansion 2016-17 Growing market + improved access + new product launches = 100+% growth 1. Type 2 Diabetes Insulin Resistant Insulet Investor Day - November 16, 2016 20 Clinical Evidence Demonstrates Improved Outcomes in Study of ~900 Patients Efficacy of the Omnipod (OP) Insulin Management System on Glycemic Control Among Patients with T1D Previously Treated with MDI or Continuous Subcutaneous Insulin Infusion (CSII) 16% Reduction in 38% Reduction in Hypoglycemic 0.6 Reduction in HbA1c Total Daily Dose Insulin Units Episodes Per Week Prior MDI Prior CSII 2.6 8.4 -4.8 0.6 8.3 0.5 1.0 ~$1K annual 7.8 7.8 ~$17K for savings for -7.8 inpatient visit2 MDI patients1 1.6 Pre OP Post OP Prior MDI Prior CSII Pre OP Post OP Omnipod offers significant clinical and economic advantages Source: Layne JE et al. J Diabetes Sci Technol. 2016;10(5):1130 1. Internal analysis 2. Am J Manag Care. 2011;17(10):673-680 Insulet Investor Day - November 16, 2016 21 Clinical Evidence Demonstrates Improved Quality of Life in Study of 1,200 Patients Impact of the Omnipod Insulin Management System on Quality of Life: A Survey of Current Users Percent of People with 56% Fewer People Reporting Glycemic Control Improved Quality of Life Moderate or Severe Distress 73 70 • 64% reported an improvement 59% in A1c 54 51 • 43% reported an improvement in A1c ≥0.5 25% • 35% reported fewer episodes of severe hypoglycemia Improvements Observed For: Moderate/Severe Distress Perceived control Diabetes distress Pre OP Post OP Overall well-being Hypoglycemic safety Omnipod simplifies life Source: Polonsky WH et al. Diabetes Technol Ther. 2016;664-70. Insulet Investor Day - November 16, 2016 22 Clinical Investment Focused on Improved Outcomes, Quality of Life and Innovation Improved Innovation Clinical Impact Payer Benefits Quality of Life Pathway Clinically meaningful Improved clinical Improvement in Demonstrate clinical improvement in A1C, outcomes, quality key patient and and quality of life time in range, of life benefits and caregiver reported