Koru Medical Systems, Inc. · NASDAQ:KRMD
Koru Medical Systems — Q1 2023 Earnings Presentation
16 slides from Koru Medical Systems's earnings presentation, May 4, 2023
Slide 1: KORU Medical Systems Q1 2023 Earnings Call
KORU Medical Systems Q1 2023 Earnings Call May 4, 2023 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 regarding our expectations for future performance, including but not limited to our future novel therapies
Slide 3: Q1 2023 Highlights
Q1 2023 Highlights Linda Tharby President and Chief Executive Officer 3
Slide 4: Strong Q1 2023 Performance and Momentum Towards our Vision 2026
Strong Q1 2023 Performance and Momentum Towards our Vision 2026 Net revenue growth versus prior year of 18% to $7.4 million, marking the sixth consecutive quarter of double-digit growth with strength in all three businesses U.S. Core business growth of 15% outpacing the subcutaneous immunoglobulin d
Slide 5: U.S. Core Business Outpacing U.S. SCIg Drug Market
U.S. Core Business Outpacing U.S. SCIg Drug Market Driven by Strength of Prefilled Syringe Penetration Continued strength from domestic core with 15% year-over-year growth Outperforming Underlying SCIg Drug Increasing Prefill Penetration Market Growth +130% PFS growth with continued penetration U.S.
Slide 6: Geographic Expansion Efforts Fueled by Increasing Global SCIg Drug Availability
Geographic Expansion Efforts Fueled by Increasing Global SCIg Drug Availability 23% year-over-year growth in international core across several key markets Strengthen Win New Patient Electronic Pump Distribution Starts Conversion Partnerships Growth across several Leverage Freedom EU markets System b
Slide 7: Increasing Momentum Within Novel Therapies
Increasing Momentum Within Novel Therapies Pipeline Novel Therapies Momentum in Q1 • Focus on large volume >10ml Q1 2023 Novel therapies sales growth of 62% reflects 15 Total Collaborations momentum from 2022 agreements 1 new collaboration in Q1 2023 • Revenues grew through non-recurring engineering
Slide 8: Novel Therapies Pharmaceutical Collaborations
Novel Therapies Pharmaceutical Collaborations 15 Total Collaborations | 7 Drug Classes $2.5B TAM(1) | 2.8M(2) Global Patient Population Expanded Indications to Patient Population Current Label (Ig) (000’s)3 Phase I Phase II Phase III Launch Date Immunology /Neurology 630 1-2 years 1-2 years 1-2 year
Slide 9: Financial Review & Guidance
Financial Review & Guidance Tom Adams Interim Chief Financial Officer 9
Slide 10: Q1 Strength Across All Three Businesses
Q1 Strength Across All Three Businesses Net Sales; In Millions $7.4 18% Domestic Core $0.6 • Increased 15% year on year growth $6.2 • Driven by increased volume of pumps and $0.3 $1.1 consumables, strength from key specialty $0.9 pharma accounts, increased prefilled penetration and a growing Ig drug
Slide 11: Improving Gross Margin Profile
Improving Gross Margin Profile Gross Margin Projection: Exit Year 60-62% 1H 55-57% Full Year 58-60% • Q1 GM 56.1% • Completed manufacturing transition to 3rd party CMO • Consolidated manufacturing to Mahwah, closing Chester facility • Q2 - Amortization of Q1 variances +60% 2H +60% 58%-60% 55%-57% •
Slide 12: 2023 Cash Planning
2023 Cash Planning Cash Balance as of March 31, 2023: Key Drivers: $12.2M • Highest Cash Burn planned in Q1 ($5.2M) • Similar cash pattern to 2022 (1H 89%, 2H 11%) ($2.8M) <($2.2M) ($1.8M) • Majority of cash usage in Working ($0.5M) Capital $17.4M $17.4M +$10.0M $12.2M • High accounts receivable (he
Slide 13: Reaffirming 2023 Guidance
Reaffirming 2023 Guidance Revenue Gross Margin Cash & Growth Profile Cash Flow Revenue guidance in Gross margins Greater than $10M range 17%- between 58-60%, and ending cash balance 20%, $32.5-$33.5 60-62% exit rate million Key Drivers/Milestones Key Drivers/Milestones Key Drivers/Milestones • Core
Slide 14: Innovation & Closing Comments
Innovation & Closing Comments Linda Tharby President and Chief Executive Officer 14
Slide 15: Innovation Extends Subcutaneous Leadership Position
Innovation Extends Subcutaneous Leadership Position Current Product Portfolio and On-Label Indications Value Proposition 2021-2022 2023 2024-2026 Freedom Edge and Freedom60 pump line New Products extensions (Q4) Next generation (Comfort, pump platform Convenience, Consumables 510k Connected) submiss
Slide 16: Strong Q1 2023 Performance and Momentum Towards our Vision 2026
Strong Q1 2023 Performance and Momentum Towards our Vision 2026 Net revenue growth versus prior year of 18% to $7.4 million, marking the sixth consecutive quarter of double-digit growth with strength in all three businesses U.S. Core business growth of 15% outpacing the subcutaneous immunoglobulin d