Atricure, Inc. · NASDAQ:ATRC
Atricure — Investor Presentation (January 2015)
31 slides from Atricure's investor presentation, Jan 12, 2015
Slide 1: Investor Presentation
Exhibit 99.2 Investor Presentation January 2015
Slide 2: Forward Looking Statements/Non-GAAP Measures
Forward Looking Statements/Non-GAAP Measures This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include statements that address activities, events or developments that AtriCure expects, belie
Slide 3: Vision
Vision AtriCure seeks to develop solutions for and become a leader in the treatment of Atrial Fibrillation (Afib) and left atrial appendage (LAA) management for stroke reduction 3
Slide 4: Top disease related deaths worldwide
Top 10 disease related deaths worldwide Afib is the second leading cause of stroke! 4
Slide 5: Key Takeaway Messages
Key Takeaway Messages • Atrial Fibrillation is a health problem of epidemic proportions • Only 27% of all surgical patients with AF are treated leaving a big opportunity for treatment 1 • Many current therapies such as anti-arrhythmic medications are ineffective • The Cox-Maze IV procedure is very e
Slide 6: AtriCure Is Poised For Growth
AtriCure Is Poised For Growth • The leading global player in the surgical Afib market Only FDA-approved device for surgical treatment of Afib Broad and deep product portfolio with deepest IP in the field World-class training • Strong and Consistent Revenue Growth and Gross Margins 17% growth in 2014
Slide 7: How Are We Doing?
How Are We Doing? A look at the last ten quarters: Q3 2012 6% growth Q4 2012 9% growth Q1 2013 11% growth Q2 2013 12% growth Q3 2013 25% growth Q4 2013 19% growth Q1 2014 28% growth Q2 2014 30% growth Includes revenue from 12/31/13 Estech Q3 2014 32% growth acquisition– organic revenue above 17% Q4
Slide 8: By The End Of The Decade We Will…
By The End Of The Decade We Will… Be the recognized leader in Afib and appendage management Have improved the lives of more than 250,000 Afib patients and treated over 150,000 with Clips 8
Slide 9: AF Clinical Hierarchy
AF Clinical Hierarchy AF Global Patient Population ~10 million Anti-arrhythmic drugs and/or anti- coagulants are effective 50% or 5 million Anti-arrhythmic drugs and/or anti- coagulants are not effective 50% or 5 million Paroxysmal Af (intermittent) Non-Paroxysmal AF (Continuous)
Slide 10: Emerging Clinical Paradigm
Emerging Clinical Paradigm PAROXYSMAL NON-PAROXYSMAL (INTERMITTENT) (CONTINUOUS) PULMONARY VEIN OPEN ISOLATION COMPLETE MAZE (CONCOMITANT) (CLAMP or FUSION) PULMONARY VEIN HYBRID STAND-ALONE ISOLATION (SURGERY + EP PROCEDURE) (CATHETER) 10
Slide 11: Ablation Global Market Opportunity – Open
Ablation Global Market Opportunity – Open Open Ablation • Labeling advantage in U.S.* • Best products Estimated open heart surgeries per year 750,000 • High gross margins Estimated % that have Afib 33% • Education is key Estimated Afib patients undergoing surgery 250,000 • Competition is large devic
Slide 12: Ablation Global Market Opportunity – Stand-alone
Ablation Global Market Opportunity – Stand-alone MIS / Stand Alone Ablation • High reimbursement • High gross margins Estimated Afib patients – E.U. and U.S. Only 8,000,000 • Growing internationally Estimated % drug refractory and symptomatic 50% • Development needed Subtotal 4,000,000 • Competition
Slide 13: LAA Global Market Opportunity – Open
LAA Global Market Opportunity – Open Open Clip • Best in class LAA management Estimated Open heart surgeries per year 750,000 • Superior safety - No adverse events Estimated % that have Afib 33% • Mechanical & Electrical Solution Estimated Afib patients undergoing surgery 250,000 • Competition inclu
Slide 14: LAA Global Market Opportunity – MIS (AtriClip Pro)
LAA Global Market Opportunity – MIS (AtriClip ® Pro) MIS Clip With Ablation One Product, Two Markets Estimated Afib patients – E.U. and U.S. Only 8,000,000 Estimated % drug refractory and symptomatic 50% Concomitant with MIS Ablation Subtotal 4,000,000 • Today’s market …will draft MIS growth Estimat
Slide 15: Summary High-Level Plan
Summary High-Level Plan Market Open is growth in short term LAA Market is here now Clinical data key to MIS growth Strategic Focus Short-Term (3-year) Long-Term (5-year) Focus on commercial execution Stroke trial success Education, Education, Education DEEP trial success Cryo enhancements LoLA on be
Slide 16: Business Overview - Diversified and Growing Portfolio
Business Overview - Diversified and Growing Portfolio Global Preliminary Focus Areas Market Keys to Success Current Trials 2014 Growth Size Open Ablation $44.7M U.S. $600M • Education and awareness PMA Post Approval Study (Concomitant) +18% Annually • Conversions and add-on sales (350 Patients; Five
Slide 17: Growth Strategy: Overview
Growth Strategy: Overview Expand Open Heart Sales Penetrate LAA Opportunity • Leverage Afib indication • Penetrate concomitant ablations • Increased training and education • Validate stroke prevention with trial • Capitalize on sales force • Afib Program Development Build MIS Platform International
Slide 18: Robust Commercial Infrastructure
Robust Commercial Infrastructure • Highly experienced sales and marketing team • 45 U.S. sales territories; additional clinical team of 25 – Up from 35 and 12 two years ago respectively – Adding 5+ territories in 2015 • E.U. subsidiary and 30 countries (generate ~25% of revenue) – Direct presence in
Slide 19: Other Key Investments For Long-term Growth
Other Key Investments For Long-term Growth Clinical Science AtriCure is a leading Afib solutions partner, passionately focused on reducing the global Afib epidemic and healing the lives of those affected. Education Innovation 19
Slide 20: Education and Training Focus
Education and Training Focus • Robust training program • Course designed by Dr. James Cox • Leading KOL Education Steering Committee • 700+ unique accounts and more than 1500 surgeons trained on the MAZE IV™ procedure • Over 400 courses completed • International Expansion Underway 20
Slide 21: Impact of Label and Educational Programs
Impact of Label and Educational Programs Sources: STS Adult Cardiac Surgery Database - 2006- Growth of Open Ablation due to 2014; Ad 2014 - Ann Thor Surg Vol 96 - 763-769; ATRC Educational Programs company estimates • FDA Approval of Synergy™ System in December 2011 for the treatment of persistent A
Slide 22: Evidence-Based Benefits of AtriCure Technology
Evidence-Based Benefits of AtriCure Technology Commitment to Clinical Science • $15M+ annual R&D expense – includes clinical trial expense • Over 100 peer-reviewed publications to date • Post Approval Study – 350 patients; 50 sites; 5 years with 3 year follow-up • EXCLUDE Trial demonstrating safety
Slide 23: Financial Snapshot
Financial Snapshot Revenue and Gross Margin • 2014 Total Revenue Growth: 31% • 2014 US Growth: 29% • 2014 OUS Growth: 39% • Four Year CAGR of 16% • Gross Margins 70-73%, with expansion opportunity Balance Sheet and Share Statistics • Approximately $68.5 million in cash and investments at 12/31/2014
Slide 24: Positioned for Success
Positioned for Success • Strong and growing revenue base • 2014 Revenue: $81.9 million (17% growth) • 2014 Revenue (expected): $107.5 million (31% growth; ~ 20% organic growth) • 2015 Revenue (guidance): $122.5 - $124.5 million (14% to 16% growth, even with a weak Euro) • Accelerating revenue growth
Slide 25: Appendix
Slide 26: Atrial Fibrillation Overview
Atrial Fibrillation Overview Condition Overview Effects • Abnormal electrical impulses cause the upper • Causes blood in the atria to become static, chambers of the heart to quiver at rapid rates of 400 increasing the risk of blood clot formation, stroke, to 600 BPM and other serious complications •
Slide 27: Afib Population: Large, Growing & Undertreated
Afib Population: Large, Growing & Undertreated • U.S. prevalence projected to grow to 12-15 million by 2050 Afib affects over 5 million • International prevalence is comparable to the U.S. in the U.S.(1) • Most common sustained cardiac arrhythmia (2) • Lifetime risk of Afib: ~1 in 4 for adults 40 ye
Slide 28: Ablation Procedure Comparison
Ablation Procedure Comparison J Thorac Cardiovasc Surg 2012;-:1-6; J Am Coll Cardiol 2012;60:1921–9 28
Slide 29: Catheter Ablation of Long-Standing Persistent Atrial Fibrillation
Catheter Ablation of Long-Standing Persistent Atrial Fibrillation 5-Year Outcomes of the Hamburg Sequential Ablation Strategy 45% 2.44 procedures 20% 1 procedure 29
Slide 30: Maze IV
Tricuspid Anaulus Ré Coronary Artery Bipolar RF Clamp e** Surgical Incision @ Optional cryo / RF pen — Bipolar RF Clamp and/or Cryo / RF Pen AtriCure
Slide 31: DEEP Pivotal Study
DEEP Pivotal Study (CP2014-1) Study Objective: Establish the safety and Subject Population: Surgical Lesion Set effectiveness of a dual epicardial and endocardial Key Inclusion Criteria: ablation procedure for patients presenting with • Patient is >18 years of age and < 75 years Persistent or Longst