Opsens — Investor Presentation (July 2023)
48 slides from Opsens's investor presentation, Jul 31, 2023
Slide 1: OpSens Inc. Investor Presentation 2023
OpSens Inc. (TSX:OPS) (OTCQX:OPSSF) Investor Presentation 2023 OPSSF
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measure
Forward-Looking Statements and Non-IFRS Financial Measure Forward-Looking Statements This presentation contains forward-looking statements with respect to the Company. These forward-looking statements, by their nature, require the Company to make certain assumptions and necessarily involve known and
Slide 3: OpSens Overview
OpSens Overview Cardiovascular Business Based on Proprietary Optical Technology For Rapidly Growing Applications OpSens’ SavvyWire ▪ Transcatheter Aortic Valve Replacement guidewire Ventricular assist device ▪ Sept 2022, U.S. FDA Clearance Abiomed - Impella Heart Pump BUSINESS PARTNERSHIPS AORTIC VA
Slide 4: OpSens – Growth Drivers
OpSens – Growth Drivers CA $ M FY ends August 31st Revenue • Launch of New Products $50 • SavvyWire (“3-in-1” solution - TAVR market - $6.3 billion1) $45 $43.2 • U.S. FDA 510(k) Clearance and Health Canada Approval • Full Commercialization in 2023 $40 • CE Mark Approval – Late 2023 $34.5 $35.3 $35 $
Slide 5: Structural Heart
Structural Heart OpSens Guidewire — SavvyWire for TAVR Procedure
Slide 6: Aortic Valve Stenosis
Aortic Valve Stenosis OpSens developed industry’s first “3-in-1” sensor-guided solution for TAVR Procedure SavvyWire - TRANSCATHETER AORTIC-VALVE REPLACEMENT GUIDEWIRE ▪ Best-in-Class guidewire performance ▪ CONTINUOUS Accurate Hemodynamic MEASUREMENTS ▪ Reliable Left-ventricular PACING ▪ No need fo
Slide 7: Aortic Valve Stenosis
Aortic Valve Stenosis Left Atrium. Aortic Valve Left Ventricle Right Ventricle ’ OPSens
Slide 8: Aortic Valve Stenosis: TAVR Market
Aortic Valve Stenosis: Transcatheter Aortic Valve Replacement (TAVR) Market Global TAVR Market (in US$ Billion)2 Disease Overview $13.3 $14.3 $12.3 $11.4 $10.5 Aortic valve stenosis occurs when the heart's $8.8 $9.7 aortic valve narrows. This narrowing prevents $7.9 the valve from opening fully, red
Slide 9: SavvyWire for the TAVR Procedure: EuroPCR
SavvyWire for the TAVR Procedure: EuroPCR EuroIntervention 2022;18-online publish-ahead-of-print May 2022 Dr Josep Rodès-Cabau Tamara Atkinson (Tami Atkinson, MD, FSCAI) Round table, EuroPCR, May 2022 JSCAI - Press, 100309 https://doi.org/10.1016/j.jscai.2022.100309 Dr Philippe Généreux 9
Slide 10: Key Factors in Evaluating TAVR Guidewire Options
Aortic Valve Stenosis: Key Factors in Evaluating TAVR Guidewire Options Pressure measurement guidewire in TAVR procedures will be key to confirm valve positioning Improve Cardiologist and Hospital Workflow World’s largest aortic valve manufacturer has no guidewire to deliver valves = significant OpS
Slide 11: Aortic Valve Stenosis: SavvyWire for TAVR
Aortic Valve Stenosis: SavvyWire for TAVR Unique Capabilities – Live Hemodynamic OptoMonitor™ – Live Comparison View Pre-and Post Procedure Streamlining Procedures Before implantation of the valve Yellow gap demonstrates pressure gradient After implantation of the valve with the SavvyWire - almost n
Slide 12: SavvyWire: Optimize Without Compromise in Clinical Use
SavvyWire: Optimize Without Compromise in Clinical Use Ventricular Valvepositioning crossing Ventricular Positioning Valve delivering Valve deployment Valve Support 12 Reference – Videos provided courtesy of Dr. Josep Rodès-Cabau
Slide 13: SavvyWire: Optimize Without Compromise in Clinical Use
SavvyWire: Optimize Without Compromise in Clinical Use Valve Crossing crossing of the Stenosed Valve Valve Valvedeployment Deployment 13 Reference – Videos provided courtesy of Dr. Josep Rodès-Cabau
Slide 14: SavvyWire First Commercial Cases
SavvyWire First Commercial Cases Quebec Heart and Lung Institute SEPTEMBER 23, 2022 Dr. Josep Rodés-Cabau FIRST SAVVYWIRE PROCEDURE IN THE UNITED STATES BY DR. PHILIPPE GENEREUX OF MORRISTOWN MEDICAL CENTER "I am extremely pleased with the performance of the SavvyWire," said Dr. Genereux. Montreal H
Slide 15: Aortic Valve Stenosis: SavvyWire Timeline
Aortic Valve Stenosis: SavvyWire Timeline 2021 2022 2023 2024 DEC. JAN. JUN. DEC. JAN. JUN. DEC. JAN. JUN. Featured by KOLs Lifetime Patient Management: The Importance 2021: Drs Généreux, Gada, Ibrahim, of TAVR Hemodynamics Rodés-Cabau, Modine Lifetime Patient Management: The 2022: Drs Leon, Généreu
Slide 16: Coronary Artery Disease
Coronary Artery Disease OpSens’ OptoWire for Physiological Measurement
Slide 17: Coronary Artery Disease: Market
Coronary Artery Disease: Market FFR/dPR Global Market (US$ Million) Coronary Artery Disease Overview Blockage or narrowing (stenosis) of the arteries The Global FFR Market is expected to $1B that supply blood to the heart muscle, often due reach US$1 billion by 2025, growing at a to a buildup of fat
Slide 18: Coronary Artery Disease: Procedure Flow
Coronary Artery Disease: Procedure Flow Measure Confirm Implantation FFR Scale Coronary Disease + + Restoration >0.80 may be treated without stent Cardiologist measures Cardiologist delivers Cardiologist measures 0.80 blood pressure stent to blockage over blood pressure before/after a the OptoWire.
Slide 19: Coronary Artery Disease: Example of Utilization
Coronary Artery Disease: Example of Utilization Watch video 19
Slide 20: OptoWire Competitive Advantages
Coronary Artery Disease: OptoWire Competitive Advantages Performance – Superior Guidability Improved Accuracy Freedom in Workflow Access complex anatomies with workhorse-like performance Repeat measurements Manipulate like your WH guidewire and with the same accuracy assess post-PCI and multi-vessel
Slide 21: OptoWire Competitive Advantages
Coronary Artery Disease: OptoWire Competitive Advantages ACCURACY (DRIFT) WORKHORSE/CONNECTIVITY Drift in pressure wires Electronic wires ▪ St Jude Medical < 7 mmHg / hour ▪ PhilipsVolcano < 30 mmHg / hour New fiber optic wires ▪ OpSens < ~0 mmHg / hour “Something about technical pitfalls: The most
Slide 22: Coronary Artery Disease: OpSens' OptoWire
Coronary Artery Disease: OpSens’ OptoWire FFR/dPR OptoWire Revenue Global Market Share Breakdown (CA$ M) $22.9 30% 6-Year CAGR* $21.8 OptoWire $20.0 (OpSens) $18.7 4% Others $14.2 6% $12.4 $5.2 Electrical Wires (Abbott/Phillips) 90% 2016 2017 2018 2019 2020 2021 2022 *Compound annual growth rate FY
Slide 23: OptoWire Sales Channels
Coronary Artery Disease: OptoWire Sales Channels Canada Japan ▪ Sales Channels: Direct ▪ Sales Channels: Distributor ▪ Market Size: US$20 M ▪ Market Size: US$90 M United States EMEA ▪ Sales Channels: Direct/GPO ▪ Sales Channels: Distributors ▪ Market Size: US$225 M ▪ Distributors: Multiple ▪ Market
Slide 24: Coronary Artery Disease: OpSens' Growth Drivers
Coronary Artery Disease: OpSens’ Growth Drivers OptoWire Continued Market Growth of more than 10% Annually GPO Relationships in the U.S. to drive adoption in 1,400 Cathlabs ▪ Recent GPO relationship lowering barrier to entry to drive adoption in 90% of U.S. cathlabs (approx. 700) ▪ Significant reven
Slide 25: Partnership
Partnership Ventricular assistance (heart pump) and other medical applications
Slide 26: Abiomed Partnership for Impella Heart Pump
Ventricular Assist Device: Abiomed Partnership for Impella® Heart Pump Abiomed Agreement Pre-2014: Strategic Partnership ▪ OpSens and Abiomed have an ongoing partnership to integrate OpSens’ sensor into Impella to provide blood pressure measurements that can be used to enhance Impella’s performance
Slide 27: Industrial Segment
Industrial Segment Innovative fiber optic measurement solutions for industrial applications OpSens' proprietary fiber optic sensing technology offers solutions for TEMPERATURE, PRESSURE, STRAIN/DEFORMATION, LINEAR DISPLACEMENT, FORCE AND LOAD for a variety of industries, including AERONAUTICS - fuel
Slide 28: Industrial Segment
Industrial Segment Recent Highlights OpSens Solution awarded a contract from RI Research Instruments GmbH for absolute and differential fiber optic pressure sensors for the International Experimental Thermonuclear Reactor (ITER). ITER: World's largest nuclear fusion and scientific experimentation pr
Slide 29: Key Accomplishments and 2023 Goals
Key Accomplishments and 2023 Goals Recent Accomplishments Near-Term Goals FY Original agreement with Abiomed to supply critical Growing Consolidated Revenues 2023 part within its heart pump extended to 2028 Capitalize on GPO Agreements to Accelerate U.S. FY GPO Agreements cover 90% of U.S. Cathlabs
Slide 30: Financials
Financials
Slide 31: Strong Revenue Growth – 2016 to 2022 and YTD 2023
Strong Revenue Growth – 2016 to 2022 and YTD 2023 CA $ M FY ends August 31st Annual Year-to-Date • Consolidated Revenue $50 $40 • Up 31% Q3 2023 $43.2 • Up 30% YTD $45 $35 $34.2 $40 $34.5 $35.3 $3.6 $2.6 • Structural Heart Revenue $32.8 $30 • Up 64% sequentially vs Q2 2023 $35 $29.5 $3.6 $26.3 $3.4
Slide 32: EBITDAO and Net Earning (loss)
EBITDAO* and Net Earning (loss) FY ends August 31st, in millions of Canadian $ EBITDAO* Net Earnings (loss) $2 $1.7 $2 $0.1 $0 $0 ($0.4) ($1.2) ($2) ($2) ($2.0) ($2.6) ($2.5) ($4) ($4) ($4.6) ($4.7) ($6) ($6.5) ($6) ($8) ($8) ($7.4) ($9.3) ($8.0) ($10) ($10) ($12) $-11.4 2016 2017 2018 2019 2020 202
Slide 33: Gross Margins
Gross Margins* Annual 70% FY ends August 31st 60% 50% 40% 30% 57% 58% 53% 53% 54% 50% 20% 42% 10% 17% 0% 2016 2017 2018 2019 2020 2021 2022 YTD 2023 2016 2017 2018 2019 2020 2021 2022 YTD 2023 *Comparative figures for 2016 to 2019 have not been adjusted to reflect the adoption of IFRS 16 - Lease agr
Slide 34: Income Statement
Income Statement $CAD Fiscal Year FY Ended August 31 Ended August 31 FY 2021 Q1 2022 Q2 2022 Q3-2022 Q4-2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Revenues Sales 34,348,000 8,047,000 7,984,000 10,044,000 8,929,000 35,004,000 9,911,000 10,714,000 13,197,000 Others 116,000 49,000 116,000 32,000 123,000 320,
Slide 35: Balance Sheet Highlights
Balance Sheet Highlights $CAD May 31, 2023 August 31, 2022 Cash and cash equivalents* 20,472,000 23,816,000 Accounts receivable, net 7,880,000 5,855,000 Inventory 11,267,000 6,672,000 Total current assets 41,608,000 39,016,000 Property, plant and equipment 3,374,000 2,683,000 Intangible assets 1,687
Slide 36: Appendix
Appendix Dury OPSens
Slide 37: SavvyWire: Improving Workflow and Efficiency
SavvyWire™: Improving Workflow and Efficiency “For my practice, really a big part of this was the workflow and maintaining or ideally improving efficiency and that’s exactly what I’ve noticed.” Dr. Rahul P. Sharma, Interventional Cardiologist Director of Structural Heart Program Co-Director Cath Lab
Slide 38: SavvyWire: Improving the Standard of Care
SavvyWire™: Improving the Standard of Care “For us it became the standard of care and I think the fact that we have display of the pressure in front of us really also increased the ease of use, but also the fun to do a case.” Dr. Philippe Genereux, Interventional Cardiologist, Co-Director Structural
Slide 39: SavvyWire: LV Pacing
SavvyWire™: LV Pacing “LV Pacing is probably the new way to optimize TAVR. You don’t need RV pacing. This is the first wire and only wire to be approved by the FDA to precisely pace the LV without RV pacing.” Dr. Philippe Genereux, Interventional Cardiologist, Co-Director Structural Heart Disease Pr
Slide 40: SavvyWire: LV Pacing
SavvyWire™: LV Pacing Dr. James Harvey, Interventional Cardiologist Director of Structural Heart Program VP and Chief Medical Officer, Heart & Vascular Service Line Wellspan York Hospital “LV Pacing with the SavvyWire is safe, it is effective and easy to learn, not just for the operator but for the
Slide 41: SavvyWire: Reducing Procedure Time
SavvyWire™: Reducing Procedure Time Dr. Philippe Genereux, Interventional Cardiologist, Co-Director Structural Heart Disease Program, Gagnon Cardiovascular Institute Morristown Medical Center “A lot of the time, it’s taking sometimes 2-3 min to float the RV pacer, sometimes more. So it’s not only an
Slide 42: SavvyWire Adoption
SavvyWire Adoption “And this I think is one of the key places where SavvyWire could be helpful to us. You place this inside the ventricule, you can even pace on it – I am going to show you just some potential options if you are doing transeptal TMVR, you can use this wire to deliver your valve as we
Slide 43: SavvyWire Adoption
SavvyWire Adoption “So let’s go to the invasive hemodynamics, this very important and this is still a raid limiting step in our procedure. We insist on doing invasive hemodynamics before and after the valve implantation but it takes some time because you need fluid filled catheters you got to get ri
Slide 44: SavvyWire Adoption
SavvyWire Adoption “…I’ll show you some fun stuff we have been doing with the SavvyWire in Vancouver because I think the value proposition here is huge.” Dr David Wood Professor in the UBC Department of Medicine’s Division of Cardiology TCT September 2022 44
Slide 45: Facility overview
Facility overview Production Headquarter and R&D U.S. Office 750 Boulevard du Parc-Technologique 2680 Boulevard du Parc-Technologique 325-6160 Summit Dr N. Québec, QC G1P 4S3 Canada Québec, QC G1P 4S3 Canada Brooklyn Center, MN 55430 USA Total square footage: 6,000 of clean room space Certification:
Slide 46: Executive Management Team
Executive Management Team Louis Laflamme John Hannigan Gaétan Duplain President & Chief Executive Officer Chief Financial Officer President, OpSens Solutions Mr. Louis Laflamme is President, CEO and Director of the Corporation John Hannigan is a highly experienced financial executive with more Gaéta
Slide 47: Board of Directors
Board of Directors Director / Denis Harrington Denis Harrington is the owner of Denis L. Harrington Consulting, LLC, a management and Executive Chairman of the Board / Alan Milinazzo Alan Milinazzo currently serves as the Americas’ Regional Managing Partner for the Healthcare and Life Science practi
Slide 48: Reconciliation of EBITDAO To Net Earnings (Loss)
Reconciliation of EBITDAO To Net Earnings (Loss) FY ends August 31st $CAD 2016* 2017* 2018* 2019* 2020* 2021 2022 Net Earnings (loss) (9,282,000) (6,537,000) (4,550,000) (1,952,000) (2,644,000) (1,150,000) (11,378,000) Financial Expenses (income) 61,000 11,000 (8,000) 146,000 684,000 637,000 312,000