Attracting Talent & Driving Growth in Wisconsin v 2 nd Annual Future Wisconsin Economic Summit Kevin Conroy, Chairman & CEO December 9, 2015
WMC Foundation: Second Annual Future Wisconsin Economic Summit Why is Wisconsin s high-tech industry critical to our growth? Exact Sciences progress and growth since 2009 Importance of entrepreneurship in Wisconsin Pillars of Wisconsin s long-term prosperity 2
Exact Sciences' progress and growth since 2009 3
OUR FIRST MISSION To work with patients, payers and providers to help play a role in the eradication of colorectal cancer Wendy Finch Jamie Truesdell 4
Our challenge: eradicating the second deadliest cancer 158,040 #2 cancer killer new diagnoses in 2015 27,540 40,560 40,730 49,700 $20B 15,590 Projected annual U.S. spending on colon cancer treatment Esophageal Prostate Pancreas Breast Colorectal Lung Annual US cancer mortality Sources: ACS Cancer Facts & Figures 2015; all figures annual J Natl Cancer Inst. 2011; 103:1-12 (Mariotto) 5
Why is colon cancer the most preventable cancer? 10+ years Pre-cancerous polyp Four stages of colon cancer Sources: J Natl Cancer Inst. 2009; 101:1225-1227 (Itzkowitz) N Engl J Med 2012;366:687-96 (Zauber); Gastro 1997;112:594-692 (Winawer) 6
Detecting colorectal cancer early is important Diagnosed in Stages I or II Diagnosed in Stage IV 9 out of 10 Survive 5 years 1 out of 10 Survive 5 years Source: SEER 18 2004-2010 7
America s stagnated colon cancer screening rate 80.0% 80.0% 50.0% 52.1% 58.6% 58.2% 2005 2008 2010 2013 2018 2020 8
A cutting edge non-invasive test with a lab focused on compliance Cologuard at-home sdna testing Exact Sciences Labs compliance program 7 DNA mutation 2 DNA methylation 1 Hemoglobin + 1 Beta-actin 9
Cologuard s performance in a 10,000 patient study Source: Imperiale TF et al. N Engl J Med. 2014;370(14):1287-1297
Developing a world-class lab to deliver results Capable of processing more than 1 million Cologuard tests per year 11
Cologuard s comprehensive screening program driving compliance Physician orders Customer outreach Cologuard completed Physician provided result Patient 73% Compliance* *Patient compliance rate: number of valid test results reported divided by the number of collection kits shipped to patients 60 or more days prior to September 30, 2015. 12
Cologuard s U.S. market opportunity 80M people $3B U.S. opportunity 13
Physicians ordering Cologuard continues expanding 21,000 ~500 new physicians order Cologuard weekly 14,700 4,100 8,300 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Aug 2014 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 14
Completed Cologuard tests continues growing >240K 34K >42K 21K 4K 11K Guidance Guidance Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 Completed Cologuard Tests 15
Increasing America s screening population (ages 50-74) 49% screened with colonoscopy 9% screened only with FIT/FOBT 42% never screened before Screening history of Cologuard users Source: Colorectal Cancer Screening with Multi-target stool DNA-based Testing Previous Screening History of the Initial Patient Cohort, poster presented at American College of Gastroenterology's Annual Scientific Meeting (ACG 2015), Oct. 16-21, 2015 16
Building and retaining high-quality talent Exact Sciences employee growth since moving to Madison 719 409 3 35 61 87 102 2009 2010 2011 2012 2013 2014 2015 17
Broad skillset across Wisconsin-based team Breakdown of Exact Sciences 400+ team members by function Customer care center 90 Lab 80 Operations & manufacturing 50 Finance, accounting & billing 50 Sales & marketing 45 Research & development 65 18
Mission-driven, engaged team 2015 employee engagement index 1 : ranks in line with Gallup s World Class Clients Exact Sciences percentile rank compared to Gallup database The mission or purpose of the company makes me feel my job is important My team members are committed to doing quality work 0% This last year, I have had opportunities at work to learn and grow 99th 98th 92nd 0% 100% 0% 100% 0% 100% Source: Results of the 2015 Great Workplace Award Recipients & participation in the Gallup Q12 Engagement Survey (2015) 19
Importance of entrepreneurship in Wisconsin 20
Wisconsin s aging population and workforce 20-44 45-64 65+ 2010 2011 2012 2013 2015 2020 2025 2030 Projecting Wisconsin Population by Age Source: U.S. Census Bureau, 2010-2030 5-Year American Community Survey Estimation 21
Wisconsin s declining per capita income Median household income falling $56,269 $51,467 2000 2013 Source: U.S. Census Bureau Data 22
New firms are largest drivers of America s job creation Source: Kaufman Foundation 23
Startups create more jobs than all other companies 24
But the share of new businesses is declining Startups as a percentage of total Source: U.S. Census Bureau; fivethirtyeight.com 25
Wisconsin ranks last for startup activity Only 100 new ventures per 100,000 residents 50th Kauffman Foundation 2015 Ranking Source: Kaufman Foundation 26
Wisconsin Minnesota Population 5.7M 5.4M Per capita income (2013) $52,413 $59,836 Gross state production (GSP) $282B $312B Percentage of college graduates 25.6% 32.5% Venture capital funding (2010-15) $396M $1.4B Sources: www.stats.indiana.edu US Census Bureau 2014 U.S. Bureau of Economic Analysis (BEA) *2015 projection from the nonpartisan Legislative Fiscal Bureau 27
A successful prototype... with room for improvement Entrepreneurs 28
Pillars of Wisconsin s long-term prosperity Innovation Enhancing our culture of entrepreneurship Building on our high-tech research capabilities Strengthening UW System & industry collaboration Trade Talent Infrastructure Developing strong connection to global markets Focusing on the China, India and Brazil Enhancing foreign direct investment Aligning education with employers skill needs Focusing on K-12 science, technology, engineering and math (STEM) Modernizing our roads, bridges and rail system Expanding broadband access statewide Strengthening communities for economic growth 29
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