Procept Biorobotics Corporation · NASDAQ:PRCT
Procept Biorobotics — Investor Day (April 2023)
44 slides from Procept Biorobotics's investor day presentation, Apr 28, 2023
Slide 1: Investor Event 2023 American Urology Association Annual Meeting
1 INVESTOR EVENT 2023 American Urology Association Annual Meeting April 28, 2023 C o p y r i g h t 2 0 2 3 P R O C E P T B i o R o b o t i c s C o r p o r a t i o n . A l l R i g h t s R e s e r v e d .
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement This presentation and accompanying oral presentation contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including the expected financial results of PROCEPT BioRobotics Corporation (the “Company”). Words such as “an
Slide 3: Proven Executive Leadership Team
3 President & CEO REZA ZADNO, PhD Avedro, Visiogen, PercuSurge, Cardiac Pathways EVP, Chief Financial Officer KEVIN WATERS Accuray, Conceptus, Laserscope (Greenlight), VISX EVP, Chief Commercial Officer SHAM SHIBLAQ Intuitive Surgical, Conceptus, Invuity, Analogic Proven Executive Leadership Team SV
Slide 4: Agenda
4 Agenda 1 Introduction – 10 min Reza Zadno, CEO Financial Review – 5 min Kevin Waters, CFO Commercial Strategy – 10 min Sham Shiblaq, Chief Commercial Officer Surgeon Panel with Q&A – 60 min Dr. Dean Elterman / Dr. Brian Helfand / Dr. Jonathan Pavlinec 2 3 4 C o p y r i g h t 2 0 2 3 P R O C E P T
Slide 5: Benign Prostatic Hyperplasia (BPH): A Significant Men's Health Disease in the U.S.
5 Benign Prostatic Hyperplasia (BPH) A Significant Men’s Health Disease in the U.S. NORMAL PROSTATE ENLARGED PROSTATE (BPH) Reason men visit the urologist Loughlin, K. Benign prostatic hyperplasia: epidemiology, economics and evaluation. Can J Urol. 2015 Oct;22 Suppl 1:1-6. Vuichoud, C, Loughlin, K.
Slide 6: Large Market & Significant Unmet Need
6 Large Market & Significant Unmet Need 4.3M WATCHFUL WAITERS ► Choose to do nothing and suffer BPH symptoms 12M U.S. men actively MANAGED for BPH 8.2M Actively TREATED for BPH ~$20B U.S. BPH Surgical Market Opportunity All numbers are approximate. Vuichoud, C, Loughlin, K. Benign prostatic hyperpla
Slide 7: Unmet Need in Surgical Intervention
7 Unmet Need in Surgical Intervention UNMET NEED: SAFETY & EFFICACY IN ALL PROSTATES ALL SIZES, ALL SHAPES S Y M P T O M R E L I E F P R I O R I T I Z E S E X U A L F U N C T I O N & C O N T I N E N C E P R E S E R V A T I O N P R I O R I T I Z E S Y M P T O M R E L I E F S E X U A L F U N C T I O N
Slide 8: Aquablation Therapy with the AquaBeam Robotic System
8 Aquablation Therapy with the AquaBeam Robotic System Only Image-Guided, Automated Robotic Therapy for BPH E F F E C T I V E , S A F E A N D D U R A B L E O U T C O M E S T H A T A R E I N D E P E N D E N T O F P R O S T A T E S I Z E , S H A P E , A N D S U R G E O N E X P E R I E N C E Intraopera
Slide 9: Aquablation Treated Prostate Sizes – U.S.
9 7% 19% 23% 19% 12% 7% 6% 3% 2% 1% 0.4% 0.4% 0.2% 0.2% 0.1% < 40 40-60 60-80 80-100 100-120 120-140 140-160 160-180 180-200 200-220 220-240 240-260 260-280 280-300 >300 Aquablation Treated Prostate Sizes – U.S. # P R O C E D U R E S P R O S TAT E S I Z E G R O U P S (mL) PROSTATE SIZE HISTOGRAM – U
Slide 10: Financial Review
10 FINANCIAL REVIEW KEVIN WATERS Chief Financial Officer C o p y r i g h t 2 0 2 3 P R O C E P T B i o R o b o t i c s C o r p o r a t i o n . A l l R i g h t s R e s e r v e d .
Slide 11: Significant Progress Since 1Q21
11 Significant Progress Since 1Q21 $7.2 Q1’21 $24.4 Q1’23 Total Revenue 50% Q1’21 95% Q1’23 3.1 Q1’21 6.4 Q1’23 Sign contracts with majority of large IDNs by 12/31/23 Increased Reimbursement in UK Two FDA Studies with 5- Year Data Meaningful expansion of U.S. Commercial team 4x increase in manufactu
Slide 12: 1Q23 Earnings Recap
12 1Q23 Earnings Recap 1 , 4 2 5 1 , 7 4 0 2 , 3 0 0 2 , 9 6 0 3 , 4 0 0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 $24.4M (+72% y/y) W O R L D W I D E R E V E N U E 6.4 25 $2.6M (+63% y/y) I N T E R N A T I O N A L R E V E N U E 192 (+106% y/y) U . S . A Q U A B E A M I N S T A L L B A S E U . S . M O N T H L Y
Slide 13: 2023 Financial Guidance
13 2023 Financial Guidance 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 Total Revenue ($M) $ 7 . 7 $ 3 4 . 5 TOTAL CASH & CASH EQUIVALENTS BALANCE OF $181M AND DEBT BALANCE OF $52M AS OF MARCH 31, 2023 A c t u a l 2 0 2 3 G u i d a n c e (1) 2023 financial guidance updated on April 27, 2023 (2) 2022 operating ex
Slide 14: Commercial Strategy
14 COMMERCIAL STRATEGY SHAM SHIBLAQ Chief Commercial Officer C o p y r i g h t 2 0 2 3 P R O C E P T B i o R o b o t i c s C o r p o r a t i o n . A l l R i g h t s R e s e r v e d .
Slide 15: U.S. Commercial Opportunity: Segmentation
15 U.S. Commercial Opportunity: Segmentation Target High-Volume Hospitals HIGH (≥100 procedures) LOW (<100 procedures) 32%68% US HOSPITALS BY ANNUAL BPH RESECTIVE VOLUME (2019) ~2,700 Total Resective Hospitals INITIAL TARGET 860 High Volume Hospitals Annual Resective Volume ≥100 28% 71% RESECTIVE PR
Slide 16: Sales Pipeline Explained
16 Sales Pipeline Explained 2,700 BPH Hospital Targets Robotic Sales Rep (Capital) Targets Phase Zero Pipeline Phase 1+ Pipeline Unit Sales RSR partners with surgeon champion Assign confidence interval to close RSR initial relationship development with surgeon Agree to contract terms, opportunity ex
Slide 17: Sales Pipeline Process
17 Sales Pipeline Process PHASE 1 Partner with a Surgeon Champion PHASE 2 Present Aquablation Program to Execs PHASE 3 Funds Approved and Contract Negotiation PHASE 4 Acquisition Once deal enters funnel, high probability to close in 6 to 9 months Identify surgeon champion with executive access Lever
Slide 18: IDN Market Segmentation
18 IDN Market Segmentation Data on File, PROCEPT BioRobotics Hospitals and Procedures based on 2019 market data, representing pre-pandemic surgeries C o p y r i g h t 2 0 2 3 P R O C E P T B i o R o b o t i c s C o r p o r a t i o n . A l l R i g h t s R e s e r v e d . 618 954355 781 BPH Hospitals
Slide 19: Meaningful Opportunity to Continue U.S. Territory Expansion
19 Meaningful Opportunity to Continue U.S. Territory Expansion High Volume Hospital ≤ 100 mile radius of Robotic Sales Representative High Volume Hospitals within 100- mile radius of Robotic Sales Reps65% High Volume Hospitals860 High Volume Hospital > 100 mile radius of Robotic Sales Representative
Slide 20: 2023 Capital Sales Tailwinds
20 2023 Capital Sales Tailwinds 2023 Tailwinds Expanded Capital Rep Team United Healthcare Coverage ( E f f e c t i v e 6 / 1 / 2 3 ) Transitional Passthrough Payment Extended ( E x p i r e s 1 2 / 3 1 / 2 3 ) 16 New Capital Territories ( A s a t 1 2 / 3 1 / 2 2 ) Strong and Growing Sales Funnel Sig
Slide 21: Key International Market Development Summary
21 Key International Market Development Summary First and only robotics company to receive MIB from NICE Direct sales force ~$8,000 procedure reimbursement Expanding clinical data with WATER III Study Direct sales force in France and Germany Strong distributor presence in Italy and Spain Regulatory
Slide 22: Surgeon Panel
22 April 28, 2023 C o p y r i g h t 2 0 2 3 P R O C E P T B i o R o b o t i c s C o r p o r a t i o n . A l l R i g h t s R e s e r v e d . SURGEON PANEL 2023 American Urology Association Annual Meeting
Slide 23: Introductions
23 Introductions Florida Urology Partners, HCA South Shore Hospital Jonathan Pavlinec, MD Tampa, FL North Shore University Health System Brian Helfand, MD, PhD Chicago, IL University of Toronto Dean Elterman, MD Toronto, Canada
Slide 24: Disclosures
24 Disclosures Grants/Research Support: Boston Scientific Speakers Bureau/Honoraria: AbbVie Astellas, Boston Scientific, Medtronic, PROCEPT BioRobotics, Prodeon, Zenflow Consulting: Medtronic, BSCI, Coloplast, Rivermark, PROCEPT BioRobotics Investigator: BSCI, Olympus, Prodeon, Zenflow, Medtronic, R
Slide 25: Aquablation is Superior to TURP Treating 50-80mL Prostates
25 Aquablation is Superior to TURP Treating 50-80mL Prostates1,2 (1) 2022 Gilling et al WATER 5yr (2) EAU 2023, Aquablation Therapy vs TRUP: 5-year outcomes of the WATER Randomized Clinical Trial for Prostate Volume 50-80mL Aquablation Therapy yields better long-term efficacy and safety outcomes tha
Slide 26: WATER II – Five Year Efficacy Results
26 IPSS improvement 15.9, p < 0.0001 IPSS baseline (SD) 22.6 (6.4) IPSS at 60-months (SD) 6.8 (4.6) Qmax improvement 9.2, p < 0.0001 Qmax baseline, mL/sec (SD) 8.6 (3.4) Qmax 60-mo, mL/sec (SD) 17.1 (9.8) At 5-year prospective follow-up, Aquablation was shown to be safe and effective in men with lar
Slide 27: WATER II – Freedom from Secondary BPH Intervention at 5yrs
27 WATER II – Freedom from Secondary BPH Intervention at 5yrs1 96.3% of patients avoided a secondary intervention due to recurrent symptoms (1) Bhojani et al. EAU 2023 WATER II 5yr data presentation
Slide 28: Aquablation Postoperative Bleeding Risk Reduction
28 Aquablation Postoperative Bleeding Risk Reduction Comparison of Bleeding Risk Requiring Intervention for Aquablation Procedures1 ~13,500 Aquablation cases were performed with a mean prostate size of 90mL Focal bladder neck cautery protocol introduced in January 2020 Significant decline in bleedin
Slide 29: Remarkable improvements across prostates all sizes and shapes
29 Clinical studies 4 Patients 425 Prostate volume 20 – 150 mL 1 year follow up Analysis of sub- groups 1. Above or below 100 mL 2. Absence or presence of obstructive median lobe Remarkable improvements across prostates all sizes and shapes Meta-Analysis Average Results Across All Sub-Groups IPSS im
Slide 30: Meta Analysis: Improvements Across Prostate Sizes and Shapes
30 Elterman D. et al. Meta-analysis with individual data of functional outcomes following Aquablation for lower urinary tract symptoms due to BPH in various prostate anatomies BMJ Surg Interv Health Technologies 2021 0 5 10 15 20 25 0 3 6 12 IPSS 0 5 10 15 20 25 0 3 6 12 Qmax 0 50 100 150 200 0 3 6
Slide 31: Meta Analysis: IPSS Question Results
31 31 0 1 2 3 4 0 1 3 6 12 IPSS Q2: Frequency 0 1 2 3 4 0 1 3 6 12 IPSS Q4: Urgency 0 1 2 3 4 0 1 3 6 12 IPSS Q1: Incomplete Emptying 0 1 2 3 4 0 1 3 6 12 IPSS Q3: Intermittency 0 1 2 3 4 0 1 3 6 12 IPSS Q7: Nocturia 0 1 2 3 4 0 1 3 6 12 IPSS Q5: Weak Stream 0 1 2 3 4 0 1 3 6 12 IPSS Q6: Straining E
Slide 32: Disclosures
32 Disclosures Consulting: PROCEPT BioRobotics Network investigator: NIH LURN lower urinary tract dysfunction The views expressed in this presentation are those of the presenter and do not necessarily reflect the views or policies of PROCEPT BioRobotics or its subsidiaries. No official endorsement b
Slide 33: Aquablation Therapy: An All-in-One Solution
33 Aquablation Therapy: An All-in-One Solution NOWTHEN
Slide 34: Simplified Treatment Algorithm Improves Practice Efficiency
34 Simplified Treatment Algorithm Improves Practice Efficiency Patient counseling requires a Treatment Algorithm ► Size ► Median Lobe ► Anterior Tissue ► Antithrombotics ► Catheter Duration ► Antegrade Ejaculation ► Durability ► Catheter Duration Treatment Algorithm not needed ► Patient counseling s
Slide 35: Surgeons to Limit Pharmaceutical Therapy in Future
35 Surgeons to Limit Pharmaceutical Therapy in Future MTOPS study, NEJM December 2003, Vol.349, No.25 Lusty et al. Cardiac Failure Associated with Medical Therapy of Benign Prostatic Hyperplasia: A Population Based Study / Vol. 205, 1430-1437, May 2021 Bortnick et al. Long-term Consequences of Medic
Slide 36: Aquablation to Expand Resective Surgery Market
36 Aquablation to Expand Resective Surgery Market Watchful Waiters Pharmaceuticals Pharma FalloutNon-resective Resective Durability Safety Efficacy Surgeons are bypassing Pharmaceuticals and offering Aquablation earlier to men given its durability and safety profile – ultimately expanding the resect
Slide 37: Same Day Discharge with Aquablation Therapy
37 Same Day Discharge with Aquablation Therapy Zorn et al. Aquablation Treatment for Benign Prostate Hyperplasia: Current Standardized Procedure. Journal of Endourology. Sep 2022.S-1-S-5. If the degree of hematuria was not clinically significant (grades I–III) after clamping irrigation at ~4 hours p
Slide 38: Aquablation Therapy Resident Training Program
38 Aquablation Therapy Resident Training Program • Younger surgeons prefer to train with novel technologies • Enhancing skills and use of rectal ultrasound equipment • Increased emphasis on surgical planning and relevant anatomy • Surgical standardization to improve patient outcomes AQUABLATION THER
Slide 39: Disclosures – Jonathan Pavlinec, MD
39 Florida Urology Partners, HCA South Shore Hospital Jonathan Pavlinec, MD Tampa, FL Disclosures Consulting: PROCEPT BioRobotics The views expressed in this presentation are those of the presenter and do not necessarily reflect the views or policies of PROCEPT BioRobotics or its subsidiaries. No of
Slide 40: Partnering with Hospital Networks to Launch Aquablation Program
40 Partnering with Hospital Networks to Launch Aquablation Program Become the premier urology practice in Tampa, FL area. Draw patients from hours away and never refer patients out Expand Geographic Reach Leverage Prostate Cancer and Kidney Stone practice to offer standardized surgical BPH treatment
Slide 41: Aquablation Clinical Support Staff Highly Trained
41 Aquablation Clinical Support Staff Highly Trained Prior to entering the field, every Aquablation Rep is required to complete a rigorous training program and pass a comprehensive surgical exam Pattern Recognition Each prostate and case is different Clinical staff support surgeons in identifying nu
Slide 42: Aquablation Therapy on Path to Become Standard of Care
42 Aquablation Therapy on Path to Become Standard of Care THEN… NOW… • Exclusively treated large prostates (>120mL) with Da Vinci Robot or outside referrals • Limited OR time due to backlog of Da Vinci cases for BPH • Difficult to balance cancer, complex urolithiasis, and severe BPH cases • Incorpor
Slide 43: Thank You
43 THANK YOU C o p y r i g h t 2 0 2 3 P R O C E P T B i o R o b o t i c s C o r p o r a t i o n . A l l R i g h t s R e s e r v e d .
Slide 44: Non-GAAP Reconciliations
44 Non-GAAP Reconciliations RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (in thousands) (unaudited) RECONCILIATION OF 2023 GAAP NET LOSS TO ADJUSTED EBITDA Guidance (in thousands) (unaudited)