Koru Medical Systems, Inc. · NASDAQ:KRMD
Koru Medical Systems — Repro Med Systems — Investor Presentation (June 2020)
25 slides from Koru Medical Systems's investor presentation, Jun 18, 2020
Slide 1: Investor Presentation June 2020
KORU MEDICAL SYSTEMS Investor Presentation June 2020 NASDAQ: KRMD
Slide 2: Disclaimer / Non-GAAP Measures
DISCLAIMER / NON-GAAP MEASURES @ KORU This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements can be identified by words such as: expects’," plans," goals," "futu
Slide 3: KORU Medical Systems: Easy-to-Use Home Infusion Solutions
KORU MEDICAL SYSTEMS (@ KORU PUTTING THE PATIENT FIRST WITH EASY-TO-USE HOME INFUSION SOLUTIONS KORU Medical Systems manufactures and sells the Freedom Integrated Infusion System that allows chronically-ill patients to self-administer subcutaneous infusion therapy in their homes mwith ease on his ig
Slide 4: Peace of Mind During Uncertain Times
PEACE OF MIND DURING UNCERTAIN TIMES @ KORU at\home\on my tin with minimats: effects.is suc! Dawn has gained “12 extra days” every month by receiving immunoglobulin G subcutaneously (SCIg) instead of intravenously (IVIg) NASDAQ: KRMD SClg with Freedom Infusion Systems: Your Peace of Mind During Unce
Slide 5: Diagnoses of Primary Immunodeficiencies (PI) Improve Lives and Lower Costs
DIAGNOSES OF PRIMARY IMMUNODEFICIENCIES (PI) @ KORU IMPROVE LIVES AND LOWERS COSTS = Astudy by The Jeffrey Modell Foundation (2017) Payor economics more examined the economic burden of chronic favorable after diagnosis immunodeficiency diseases = Retrospective analysis of 1,388 patients $85,782 undi
Slide 6: Market Overview
MARKET OVERVIEW © KORU PLASMA SUPPLY IS RAMPING AS DEMAND RISES FOR Ig AND SClg THERAPY Global Ig Market ” ($ in billions) Global Home Infusion Therapy Market +7% CAGR to $41.6 B by 2027” (2), Fortune Business insights. ww fortunebusnessinsishts.com/press-relesse/immunoglobulins-market-9134 (2) Gran
Slide 7: ~$300M Current U.S. Addressable Market
~$300M CURRENT U.S. ADDRESSABLE MARKET @ KORU EXCLUDES OTHER DISEASE STATES AND SECONDARY IMMUNE DEFICIENCY DISEASES INTERNATIONAL MARKET OPPORTUNITY ~2x — 3x U.S. ADDRESSABLE MARKET (3) KORU Medical’s ‘ jon" 350+ Tey eee 270,000 U.S. Patient Population” Chronic Disorders Untreated 9% Receiving Ig T
Slide 8: Freedom Infusion Systems
FREEDOM INFUSION SYSTEMS WIDELY ADOPTED SClg DELIVERY SYSTEM Infuse in 3 Easy Steps NASDAQ: KRMD KORU NYPD \> oy Maintenance-free [Wz No batteries or electricity required Easy-to-use, easy-to train aN é — Dynamic Equilibrium maintains safe pressure of 13.5 psi throughout infusion Low residual volume
Slide 9: At-Home Infusion: The Savings Opportunity
AT-HOME INFUSION: THE SAVINGS OPPORTUNITY “ @ KORU Monthly Cost of Immune Deficiency Drugs for Privately Insured Individuals, 2018 [MM Hospitals [MN Physician Offices MJ Patients’ Home “For certain administered specialty drugs, treatment 44% at home can improve patients’ physical and mental well-bei
Slide 10: SCIg Enables Improved Patient Outcomes and Quality of Life
SClg ENABLES IMPROVED PATIENT OUTCOMES AND QUALITY (©) KORU OF LIFE™ SClg Offers Mea OO”O®O gful Bene’ 's to Patients Self-administer at home withoutthe need fora nurse Infuse under the skin, not througha vein Freedom to go about daily activities with minimal interruption Consistent serum levels...w
Slide 11: Hizentra
HIZENTRA® KORU Hizentra is an Ig" therapy that provides ‘proven protection for Pland CIDP with |) | {the convenience of se-administration, Source: www A www.hizentra.com NASDAQ: KRMD -11-
Slide 12: Xembify by Grifols: Launched December 2019
XEMBIFY® by Grifols: Launched December 2019 = New SClg treatment introduced by Grifols = Grifols is a leading producer of plasma medicines = Validates therapeutic shift from IVIg to SClg = Grifols anticipates increasing global plasma donation centers = Significant long-term growth potential for KORU
Slide 13: KORU Improves the Delivery of Care
KORU IMPROVES THE DELIVERY OF CARE (@ KORU PHYSICIAN/PATIENTS/SPECIALTY PHARMACIES ARE PRODUCT DECISION MAKERS KORU AND PHARMA ARE THE PRIMARY INFLUENCERS ON THESE DECISION MAKERS Hospital / Immunologist Infusion Therapy SP Self-Administer Infusion Resupply Physician Visits Diagnosis Prescribed Dist
Slide 14: New Therapies Represent Significant Market Expansion Potential
NEW THERAPIES REPRESENT SIGNIFICANT MARKET @ KORU EXPANSION POTENTIAL SMALL- AND MID-LARGE VOLUME SClg INJECTIONS / INFUSIONS >100 Companies: >10 Therapeutic Areas >10 High Potential Future Candidates Current Development Programs Total Addressable Market = “40M Patients & Gd % T Secondary Hematolo,
Slide 15: KORU's Positioning
KORU’S POSITIONING (@ KORU LEVERAGING OUR CORE STRENGTHS TODAY TO DRIVE GROWTH TOMORROW Growing Adoption and Expanded Indications for 4 Significant Market Share Opportunity in Current Existing Therapies (e.g. a $ and Growth Potential Space (Ig) Secondary Immunodeficiency) Differentiated Technology S
Slide 16: Executing Against Our Strategic Growth Initiatives
EXECUTING AGAINST OUR STRATEGIC GROWTH INITIATIVES @ KORU TO BECOME THE PREFERRED DRUG DELIVERY PARTNER FOR SPECIFIC INFUSION THERAPIES IN SELECT MARKETS Phase 1 Phase 2 é Growth & Market Capture Expand & Innovate Accelerated Growth 2019 - 2020 2020 - 2021 2021 and Beyond Maintain baseline business
Slide 17: Investment Strategy to Accelerate Growth
INVESTMENT STRATEGY TO ACCELERATE GROWTH (@ KORU Clinical Trials / Pharma Initiatives Commercial Expansion New Product Innovations Gross Margin Enhancement Working Capital NASDAQ: KRMD New Life, New Beginnings -17-
Slide 18: Improved Annual Net Sales and Gross Margin
IMPROVED ANNUAL NET SALES AND GROSS MARGIN @ KORU Net Sales a 5 Long-Term Financial Goals High Growth $23.2 $17.4 33% 24% 20%+ Revenue CAGR Annual Organic (2016 - 2019) Revenue Growth 2018 2019 (S$ in millions) Gross Margin 64.1% Improved 62.3% Gross Margin 180 bps 70%+ Gross Margin by End of 2022 2
Slide 19: Q1 2020 Financial Summary
Q1 2020 FINANCIAL SUMMARY @ KORU (S$ in millions) NET SALES GROSS PROFIT* GROSS MARGIN* $6.3 $3.9 iy 62% “We reported a strong sa i 1 Q1 2020 with net sales, [ net income, and Q1‘19 Q1‘20 Q1‘19 Q1‘20 Qi‘19 Q1‘20 Adjusted EBITDA rising NET (LOSS) INCOME ADJUSTED EBITDA** ” $1.3 from Q1 2019. $0.4 ir
Slide 20: COVID-19
COVID-19 (@ KORU EXPERIENCED MINIMAL OPERATIONAL DISRUPTIONS CONTINUING TO SUPPORT PATIENTS WITH CHRONIC MEDICAL CONDITIONS + * & 8 © The overwhelming No material issues IG remains tight, but with 15% Crisis may result in greater majority of the patients we expected with U.S. plasma U.S. unemploymen
Slide 21: Balance Sheet and Capital Structure
BALANCE SHEET AND CAPITAL STRUCTURE @ KORU (S$ in millions) $7.4 Cash & Cash Equivalents at March 31, 2020 2019 $3.5 Line of Credit Cash & Cash Equivalents effective April 14, 2020 Current Assets $14.5 $11.9 $2.5 Equipment Financing Total Assets $16.6 $13.9 Line of Credit Total Liabilities $4.5 $2.7
Slide 22: Strengthened, Seasoned Leadership Driving Growth
STRENGTHENED, SEASONED LEADERSHIP DRIVING GROWTH (©) KORU NASDAQ: KRMD Don Pettigrew President & CEO Joined 2018 24 years experience Moog, Inc. Baxter (Gambro) Boston Scientific Manny Marques coo Joined 2015 23 years experience Noble Biocare Procera, LCC Karen Fisher, CPA Joined 2015 25 years experi
Slide 23: Expanded and Strengthened Board of Directors
EXPANDED AND STRENGTHENED BOARD OF DIRECTORS ALL INDEPENDENT (Year Appointed / Committee) Daniel S. Goldberger (2018) Director electroCore Synergy Disc Replacement Milestone Medical Xtant Medical Holdings Sound Surgical Technologies Committees A= Audit C= Compensation NG = Nomination & Governance *
Slide 24: Reconciliation
RECONCILIATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA GAAP Net Income / (Loss) Tax Expense / (Benefit) Depreciation/Amortization Interest Income, Net Reorganization Charges Discontinued Product Expense Litigation Expenses Manufacturing Initiative Expenses Stock Compensation Ex
Slide 25: Thank You
THANK YOU @ KORU MEDICAL SYSTEMS NEW LIFE, NEW BEGINNINGS
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