MEDTOX Scientific, Inc.
Noble Financial Conference
November 10, 2005
Forward-looking statements contained in this
presentation are made under the Safe Harbor
Provision of the Private Securities Litigation Reform
Act of 1995. Any such statements are subject to risks
and uncertainties that could cause actual results to
differ materially from those anticipated. Such factors
are described from time to time in the Company's
Annual Report on Form 10-K and other reports filed
with the Securities and Exchange Commission.
Who we are
Value Proposition
Business Structure and Markets
Strategy
Financial Information
Overview
Leader in Workplace Drugs-of-Abuse Testing
Laboratory Based Testing
POCT (Point-of-Collection Testing)
Integrated Customer Solutions
Specialty Niche Laboratory Services Provider
Clinical trial support
Filter paper testing for lead
Metals laboratory
Clinical toxicology
Autopsy support testing
Who we are:
State-of-the-art lab technology and test
devices—supported by value-added
services
Value proposition
Value proposition
Value added through
LEAN and Six Sigma
Collection Site and Program Management
IT Solutions
Innovative Product Development
Value added
LEAN and Six Sigma
Improved quality and productivity
Focus on value from the customer’s
perspective
Eliminate waste / reduce costs
Increased throughput and capacity
Improved margins and profitability
Value added
Collection Site and Program
Management
Value added
Collection Site Management
Over 8,000 collection sites
Preferred Provider Network
1,100 sites
Trained and certified sites
Specimen collection
Point-of-Collection Testing
Company specific protocol
Value added
Preferred Provider Network
Value added
IT Customer Solutions
WebTox®
eChain®
MEDTOXScan™
Value added
WebTox®
Web based result reporting
Specimen Status
View image of Chain-of-
Custody
Used for lab-based and
Point-of-Collection Testing
Value added
eChain®
First multi-purpose electronic
chain-of-custody system
Web-based “thin client” application
Used for lab-based and Point-of-
Collection Testing
Allows clients to track entire test
process
Expedites collection process and
reporting
Value added
MEDTOXScan™
Interprets drug strips
electronically
Stores multiple patient records
Compact and portable
Can interface with hospital
systems
Offers flexibility to hospital lab
technicians (Result “holds” until
cleared by technician)
Automates and expedites
throughput and data
management
MEDTOXScan™
Value added
Innovative Product Development
PROFILE®-II A
Sure-Screen®
Value Added
Innovative Product Development
PROFILE®-II A
Drugs-of-Abuse Point-of-
Collection Testing Device
With onboard adulterant
test
Value Added
Innovative Product Development
Sure-Screen®
First of its kind in the market
Offers substantially lower
detection levels
First “zero-tolerance”-type device
Convenient cup design/User-
friendly
Confirmatory testing through
MEDTOX Laboratories
Markets
Business Structure and
Market Information
Business Structure
27%
49%
24%
Diagnostic
Products
$13.5 M
Specialty Lab
$15.3 M
Laboratory
Drugs-of-Abuse
$27.9 M
2004
Market Share Overview
Drugs-of-Abuse
Specialty Lab
Diagnostic
Products
$400 million
$1 billion
$ 400 million
2004 MEDTOX
REVENUES:
$27.9M
7.0 % market share
2004 MEDTOX
REVENUES:
$15.3M
1.5 % market share
2004 MEDTOX
REVENUES:
$13.5 M
3.4 % market share
Markets
Laboratory Services
Laboratory Services
Market Profile
Serving national employers of all
categories
Service business, differentiated via
technology and value-added
services
Nine months ended September 30,
2005 15% year over year growth
2004 TOX REVENUES:
$27.9M
7.0 % market share
*Based on Washington G-2 Reports
Laboratory Services, Workplace Drugs-of-Abuse
$400 million*
Market Profile
Competition
Laboratory Services, Drugs-of-Abuse
Quest & LabOne 45%
LabCorp 23%
MEDTOX 7%
Psychemedics 4%
Source: Washington G-2 Reports
Market Profile
Specialty Laboratory Services
2004 MEDTOX REVENUES:
$15.3M
1.5 % market share
*MEDTOX estimate
Large and growing market
opportunity
Clients
Hospitals, clinics, other
laboratories
Small- to mid-sized
Biotech and Pharma
Differentiated by
specialization
$1 billion*
Market Profile
Drugs-of-Abuse, Diagnostic Devices
Serving employers, rehab, and
limited rights market (prison,
probation, parole)
Single-use test kits for POCT
(point-of-collection test) with
results in minutes
Lab testing for positive test
verification
$ 400 million*
2004 MEDTOX REVENUES:
$13.5 M
3.4 % market share
*MEDTOX estimate
Market Profile
Summary
Large Markets
Strong niche position
Opportunity for growth within existing
markets and core competencies
Strategy
Dedicated to profitable growth
Build market share by offering the high quality
products and services, priced competitively and
supported by value-added services for our
customers
Leverage existing infrastructure and
technical expertise to improve operating
margins and facilitate top line growth
Drive innovation
Execute
Financial Information
Financial Information
Third Quarter 2005 Results
569
1,281
6,032
$14,473
Q3
2004
256
407
1,228
$2,040
Q3
Variance
($)
45.0%
825
Net Income
31.8%
1,688
Operating
Income
20.4%
7,260
Gross Profit
14.1%
$16,513
Net revenues
Q3
Variance
(%)
Q3
2005
Financial Information
Financial Information
9 months Ended
September 30,
1,711
3,887
$18,386
$43,120
2004
550
763
2,316
$4,927
Variance
($)
32.1%
2,261
Net Income
19.6%
4,650
Operating Income
12.6%
20,702
Gross Profit
11.4%
$48,047
Net revenues
Variance
(%)
2005
Third Quarter 2005 YTD Results
7.8M
EBITDA (ttm)
1.22
Price/Book (mrq):
0.86
Price/Sales (ttm):
61.7M
Revenue (ttm)
53.0M
Market Cap (3-Nov-05):
Financial Information