Slide 1: FY18 Results Presentation
FY18 Results Presentation For the twelve months to 31 March 2018 29 May 2018
Slide 2: FY18 Overview
FY18 OVERVIEW Our aim is to change long standing clinical practices and encourage adoption of Cxbladder: ü More Customers: Continued focus on building customer base, specifically in the US, the world’s largest healthcare market. Singapore first commercial customer of scale ü Transformational Custome
Slide 3: Markets
MARKETS USA remains the primary focus; New Zealand is moving quickly United States: Ø Growing number of urologists transitioning from User Programmes to commercial customers Ø Granted CPT Codes by American Medical Association precedes price setting Ø Signed contract with MediNcrease HealthPlan provi
Slide 4: Transformational Customers
TRANSFORMATIONAL CUSTOMERS Continue to be primary focus and opportunity for Pacific Edge Ø Kaiser Permanente: Continuing commercial discussions. Working with Kaiser’s staff on necessary IN PROGRESS business elements to ensure that the start-up of commercial tests can occur shortly after an agreement
Slide 5: Suite of Products Driving Commercial Adoption
SUITE OF PRODUCTS DRIVING COMMERCIAL ADOPTION Increasing availability of full product suite in target markets driving uptake Ø Mid-central DHB sign-up for all four Cxbladder products Ø Cxbladder Resolve now available in Australia; soft launch commenced in the US in December 2017 - commercial launch
Slide 6: Sales Channels
SALES CHANNELS Shifted focus to large healthcare institutions Ø Sales focus on large healthcare institutions has increased in all target markets following the success achieved in NZ Ø Dedicated US sales team - additional resource focused on institutions Ø User Programmes remain the primary driver fo
Slide 7: Performance in Line with Peers
PERFORMANCE IN LINE WITH PEERS Cxbladder sales tracking well; in line with other leading molecular diagnostic companies in the US Test Volume of Molecular Diagnostics Companies post launch Gaining coverage and reimbursement decisions will be key to driving volume Ø Sales of Cxbladder are currently i
Slide 8: Preliminary Financial Performance for FY18
PRELIMINARY FINANCIAL PERFORMANCE FOR FY18 Pacific Edge FY18 Presentation Slide 8
Slide 9: USA B2C Reimbursement Process
USA B2C REIMBURSEMENT PROCESS Ø The US reimbursement system is complex Ø Currently, approx. 60% of Pacific Edge customers are directly with the patient (B2C relationship) Ø Payment can take anywhere from 1 to 24 months to be received as the majority involves payment by either private or public insur
Slide 10: New Revenue Reporting Model
NEW REVENUE REPORTING MODEL Adoption of IFRS 15 – US cash based revenue recognition As previously advised, Pacific Edge has adopted the new revenue accounting standard, Ø New revenue standards (NZ IFRS NZ IFRS 15, for the 2018 financial year. This means that Pacific Edge now only 15) results in only
Slide 11: Performance Against Forecast
PERFORMANCE AGAINST FORECAST Test throughput grows by 29% Pacific Edge Performance Metrics • October 2017 forecast based on FY17 vs FY18 the assumptions that the 16,000 commercial agreement with Kaiser Permanente would be in place 14,000 Previous accounting standard from February 2018 and faster 12,
Slide 12: FY18 Snapshot
FY18 SNAPSHOT Using the new revenue reporting model: US revenue on cash basis Performance ($ millions) FY18 NZ IFRS1 FY17 Restated1 % Change FY17 (Previously (Unaudited) (NZ IFRS 15) Reported) Operating Revenue 3.4 3.2 6% 8.1 Other Revenue 1.6 1.5 7% 1.4 Total Revenue 5.0 4.7 6% 9.5 Operating Expens
Slide 13: FY17: FY18 Revenue Bridge
FY17: FY18 REVENUE BRIDGE Sales revenue increased +6% to $3.4m REVENUE GROWTH Outstanding US B2C revenue no ü 6% increase in revenue received for test sales to $8.1m longer recognised under NZ IFRS 15 $3.4 million ü Positive growth in product sales, predominantly in the USA: • Increasing sales from
Slide 14: Laboratory Throughput
LABORATORY THROUGHPUT Cornerstone measure of the growth of the business Laboratory Throughput (Includes commercial tests and User Programmes) ü 14,400 tests processed in FY18 including commercial tests and User Programmes 16000 14000 ü Approx. 82% of tests were billable in FY18 29% compared to 78% i
Slide 15: Profit and Loss
PROFIT AND LOSS Revenue outgrows expenses by a net 13% ($ millions) FY18 FY17 Change (NZ IFRS 15) 1 Restated 1 ü Revenue outgrowing expenses by a net 13% (FY18 7% on FY17): Total Revenue +7%; Op Expenses -10% TOTAL REVENUE 5.0 4.7 42% Ø Continued investment into four strategic areas: Laboratory Expe
Slide 16: Operating Cashflow
OPERATING CASHFLOW In line with previous year and management expectations NET OPERATING CASHFLOWS FY18 FY17 Ø Payment terms currently average seven to 12 ($ millions) (NZ IFRS 15)1 Restated1 months lag between completion of test and payment by relevant US payer (insurer). Receipts from: - customers
Slide 17: Outlook
OUTLOOK FY19 Revenue Uplift Expected In Line With Annual Trends Ø Focus on concluding contract with Kaiser Permanente and attaining LCD for CMS patients, which will ensure cash uplift and timely reimbursement from CMS Ø Continuing uplift in commercial sales expected from existing and new customers Ø
Slide 18: David Darling, Chief Executive Officer
David Darling Chief Executive Officer Pacific Edge Limited www.pacificedge.co.nz Tel: +64 3 479 5802 Mobile: +64 21 797981 www.cxbladder.com Email: david.darling@pelnz.com www.pacificedgedx.com Pacific Edge FY18 Presentation
Slide 19: Appendix: Our Purpose and Strategy
APPENDIX: OUR PURPOSE AND STRATEGY Delivering Innovative Solutions for the Early Detection and Management of Cancer Ø Focus on haematuria and urothelial cancer; commercialising a suite of Cxbladder tests (one-stop-shop) Ø The United States is the world’s largest healthcare market and our primary foc
Slide 20: Performance Against Forecast: Numerical Breakdown
PERFORMANCE AGAINST FORECAST Numerical breakdown FY18 Forecast FY18 on ‘like for like’ % of FY17 Previously (Unaudited) basis (Unaudited) Forecast Achieved Audited and Reported Total Revenue ($m) 12.6 12.0 95% 9.5 Operating cashflow ($m) (18.0) (18.1) 101% 17.8 Laboratory Throughput 15,800 14,400 91
Slide 21: Appendix: Notes to the Forecast
APPENDIX: NOTES TO THE FORECAST US Revenue makes up approximately 90% of Pacific Edge’s total revenue and remains our focus REIMBURSEMENT AND PAYMENT PROCESS FOR CMS AND PP US revenue makes up approximately 90% of Pacific Edge’s total revenue with two Centres For Medicare and Medicaid Services (CMS)
Slide 22: Disclaimer
DISCLAIMER Information The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to the performance of Pacific Edge Limited . The information in this presen