Gentian Diagnostics Asa · OSL:GENT
Gentian Diagnostics Asa — Q3 2022 Earnings Presentation
29 slides from Gentian Diagnostics Asa's earnings presentation, Oct 27, 2022
Slide 1: Q3 22 Presentation
Q3 22 Presentation October 27th, 2022
Slide 2: Important notice
Important notice This presentation has been prepared by and is the sole which are subject to risks, uncertainties and other factors with applicable laws and regulations. The Company require responsibility of Gentian Diagnostics ASA (the “Company” that may cause actual events to differ materially fro
Slide 3: Introduction
7“, e troduction
Slide 4: Efficient diagnostics for better treatment decisions
Efficient diagnostics for better treatment decisions The growing diagnostic market puts increasing pressure on laboratories. Still, many of the existing, clinically relevant biomarkers are only available on slow and inefficient platforms. By converting biomarkers to the most efficient automated, hig
Slide 5: Portfolio of high-impact tests provides solid growth opportunity
Portfolio of high-impact tests provides solid growth opportunity 7* tests contributing Annual revenue to saving costs and ambition of NOK protecting life 1bn in 4-6 years** Ambition to bring a steady USD 1.3bn serviceable stream of high-impact market with 8-9% annual diagnostic tests to market growt
Slide 6: Dedicated and experienced management team
Dedicated and experienced management team CEO CSO CFO & COO CCO VP Science/Clinical VP R&D VP QA & RA VP BD Hilja Erling Njaal Markus Alexandra Torsten Anne-Mette Jack Ibert Sundrehagen Kind Jaquemar Havelka Knüttel Horsrud Akre Andreassen 25+ years’ experience from Erling Sundrehagen, co- 20+ years
Slide 7: Products targeting large and growing disease groups
Products targeting large and growing disease groups DISEASE GROUP PRODUCT APPLICATION ATTRACTIVE CLINICAL BENEFITS Kidney disease Cystatin C Early detection of reduced kidney function Preventing severe kidney failure Inflammation Fast diagnosis of inflammatory bowel disease Reducing time-consuming a
Slide 8: Good progress made on NT-proBNP, working prototype developed
Good progress made on NT-proBNP, working prototype developed • Investigations during the third quarter showed that the initial results with the lead candidate from the second quarter were reproducible • Consequently, more studies to test the robustness of the lead immunoparticle candidate have been
Slide 9: USD 1.3bn global serviceable market estimated to grow by 8-9% annually next 4-6 years
USD 1.3bn global serviceable market estimated to grow by 8-9% annually next 4-6 years Serviceable Market Total Addressable Total Serviceable Target market share, Gentian’s annual growth rate, Market, USDbn Market, USDm unrisked revenue take next 4-6 years Established products 1.5 180 ~25% 30-50% 5-1
Slide 10: Solid progress on sales growth and partnerships with leading global diagnostic companies
Solid progress on sales growth and partnerships with leading global diagnostic companies Total revenue* and CAGR Partnerships prove viability of go-to-market model 120 100 NOKm Global distribution agreement for 100 GCAL®, initial roll-out in Europe 80 +27% 79 60 Long-standing commercial partnership
Slide 11: Financial review
Financial review
Slide 12: Sales growth and milestones support long-term ambition
Sales growth and milestones support long-term ambition Q3 2022 financials Highlights Sales Gross margin • Sales of MNOK 23.1 in Q3 22, up 34% (35% organic growth) vs Q3 21 NOK 23.1m 45% • Strong growth in the US enabled by recent distribution agreement +34% vs Q3’21 37% in Q3’21 • Additional US dist
Slide 13: Continued high growth driven by established products
Continued high growth driven by established products Sales - geographic split • Sales increased by 34% to NOK 23.1m (35% organic growth) MNOK Q3 22 Q3 21 YTD 22 YTD 21 • Strong growth in Europe and US, fCAL® main driver • Sales to Asia impacted by COVID related lockdowns in China Europe 17.3 12.4 52
Slide 14: Stable cost development
Stable cost development NOKm Q3 22 Q3 21 YTD 22 YTD 21 Sales and marketing 3 760 3 338 15 166 11 080 expenses 2 Administration expenses 7 873 5 073 22 184 19 465 1 Research and 6 735 4 369 16 404 18 898 1 development expenses 2 Total 18 368 12 780 53 754 49 443 4 24 • Total other operating expenses
Slide 15: Positive free cash flow in Q3, investing to scale
Positive free cash flow in Q3, investing to scale Q3 2022 balance sheet and cash flow Capital priorities Cash Capex • Positive free cash flow in Q3 2022 as net working capital was reduced NOK 93.9m NOK 3.1m • Planned spending increase as total number of NOK 131.3m in Q3’21 NOK -1.0m vs Q3’21 product
Slide 16: Summary and outlook
Summary and outlook
Slide 17: Long-term ambitions rooted in recent progress
Long-term ambitions rooted in recent progress Four established products with potential to grow 20%+ annually Prove clinical relevance of GCAL and bring NT-proBNP to market 7 products with combined net revenue potential of Bring a steady stream of high-impact diagnostic tests to market Revenue NOK 1b
Slide 18: Several de-risking milestones expected next months
Several de-risking milestones expected next 12 months ESTABLISHED PRODUCTS GCAL SARS-COV-2 AB NT-PROBNP Targeting additional large Securing additional global Initiating rollout in the EU with Progress on remaining commercial partners, while commercial partners and focus on the Nordics challenges in
Slide 19: Q&A
Q&A
Slide 20: Appendix
Appendix
Slide 21: Gentian Diagnostics develops and supplies innovative and efficient reagents for the clinical diagnostics market
Gentian Diagnostics develops and supplies innovative and efficient reagents for the clinical diagnostics market Sales office, Sweden • Gentian serves the global market for human and veterinary clinical diagnostic tests HQ, Norway • Expertise and focus within immunochemistry, specifically in the dise
Slide 22: How Gentian contributes to efficient diagnostics for better treatment decisions
How Gentian contributes to efficient diagnostics for better treatment decisions The industry challenge Gentian’s solution High-value benefits A growing diagnostics market puts increasing Particle-enhanced turbidimetric 3-10x higher throughput significantly pressure on clinical laboratory efficiency
Slide 23: Combining avian antibodies and PETIA enables fast results and improved lab productivity
Combining avian antibodies and PETIA enables fast results and improved lab productivity Avian antibodies PETIA Avoiding interference enables Removing separation conversion to PETIA steps increases throughput and reduces cost Antibodies: Proteins used by the immune system to identify Immunoassays: Bi
Slide 24: Structured approach to product development
Structured approach to product development EXPLORATION PROOF OF CONCEPT OPTIMISATION VERIFICATION VALIDATION LAUNCH Clinical and Technical feasibility Prototype developed Prototype formally Final product tested Product made available commercial demonstrated, project and risk assessment evaluated aga
Slide 25: Diversified sales model to ensure broad market access and maximize penetration
Diversified sales model to ensure broad market access and maximize penetration Global diagnostics companies Specialized/local distributors Healthcare providers • Gentian’s main strategy to secure broad roll-out • Accelerating time to revenue and awareness • Direct sales to select end-users and key o
Slide 26: P&L highlights
P&L highlights NOKm Q3 22 Q3 21 2021 Sales 23.1 17.2 83.1 Other revenues 2.0 2.2 16.9 Total revenues 25.1 19.4 100.0 COGS 12.8 10.8 43.2 Employee benefit expenses 10.0 8.9 39.5 D&A 2.7 2.4 7.4 Other OPEX 8.4 3.9 32.8 EBITDA -6.1 -4.2 -15.5 EBIT -8.7 -6.6 -22.8
Slide 27: Cash flow highlights
Cash flow highlights NOKm Q3 22 Q3 21 2021 Operating activities 4.9 -2.1 -27.1 Investing activities -3.1 -4.1 -12.8 Financing activities 0.0 -1.1 -3.1 Changes in cash and cash equivalent 1.8 -7.3 -43.0 Cash and cash equivalent at the beginning of period 92.1 138.6 158.0 Cash and cash equivalent at t
Slide 28: Gentian board
Gentian board Tomas Espen T. Tomas Kari E. Susanne Fredrik Monika Frank Settevik Jørgensen Kramar Krogstad Stuffers Thoresen Neuman Frantzen Chair of Board member Board member Board member Board member New board New board New board the Board member member member Tomas Settevik has Espen Tidemann Mr.
Slide 29: Top 20 shareholders
Top 20 shareholders Shareholder No of shares % Vatne Equity AS 2 110 224 13.68% Kvantia AS 1 623 368 10.53% Holta Life Sciences AS 1 214 702 7.88% Verdipapirfondet Delphi Nordic 970 934 6.29% Safrino AS 800 000 5.19% Skandinaviska Enskilda Banken AB 489 000 3.17% Salix AS 390 689 2.53% Verdipapirfon