Axogen, Inc. · NASDAQ:AXGN
Axogen — Investor Day (November 2017)
22 slides from Axogen's investor day presentation, Nov 21, 2017
Slide 1: Second Annual Analyst and Investor Day
EXHIBIT 99.4 Second Annual Analyst and Investor November 20, 2017 NASDAQ: AXGN Day 1 It's time to rethink nerve repair.TM
Slide 2: Event Agenda
Event Agenda 3 Company Overview and Update Karen Zaderej AxoGen President and CEO Building a Platform for Nerve Repair – Clinical perspectives Erick DeVinney AxoGen VP of Clinical and Translational Science Peripheral Nerve Repair from Head to Toe Dr. Ivica Ducic AxoGen Medical Director and Washingto
Slide 3: The AxoGen Platform for Nerve Repair
The AxoGen Platform for Nerve Repair 1/AxoGen. It's time to rethink nerve repair.™ 4
Slide 4: Current Targeted Nerve Markets
Current Targeted Nerve Markets AxoGen Current Target Markets $2.2 Billion (U.S.) Breast Neurotization $250M Carpal and Cubital Tunnel $188M OMF $293M $439M Extremity Trauma $1.5B $391M $439$M976M $238M $433M $161M $271 Over 900,000 Procedures Annually in U.S.1: 719,0001 118,0002 80,3503 14,5004 Extr
Slide 5: Potential Opportunity of Over 900,000 Nerve Repair Procedures
…Leading to a Potential Opportunity of Over 900,000 Nerve Repair Procedures in Multiple OMF Surgical Specialties Ophthalmology in the U.S. Alone Breast Neurotization 14,500 Loss of breast sensation affects QOL 80,350 Iatrogenic nerve injuries (dental implants, third molar extractions) Benign tumor r
Slide 6: Market Development Strategy
Build Market Awareness Educate Surgeons, Develop Advocates Grow Body of Clinical Evidence Execute Sales Plan Expand Product Pipeline & Applications Market Development Strategy 7 It's time to rethink nerve repair. TM
Slide 7: Focus on Building Awareness Among Surgeons, Patients, and Investors
Focus on Building Awareness Among Surgeons, Patients, and Investors Participate in Clinical Conferences Exhibits, Podium presentations, KOL panels Promote Awareness Among Patients AxoGen Patient Ambassador Program Garner Positive Media Attention National, Regional, and Local Broadcast, Print, an
Slide 8: Emphasis on Education
Emphasis on Education 2016: 2017: 2018: 13 15 18 National National National Programs Programs Programs Expected Educate on “best practices” of nerve repair Local Grand Rounds and handling labs Fellow education – training the next generation of surgeons, expect to train two-thirds of hand surgeon
Slide 9: Strong Commitment to Clinical Evidence
Strong Commitment to Clinical Evidence Developing ® 5 1,300 Avance® nerve repairs enrolled to date 53 Portfolio Peer-Reviewed Clinical Papers* 45 18 *Total number for the portfolio of surgical implant products. Certain publications contain data on multiple products. As of September 30, 2017 10 Grow
Slide 10: Focused Sales Execution, Increasing Market Penetration
Focused Sales Execution, Increasing Market Penetration Sales Execution Focused on Driving Results Continue expansion thru driving penetration in active accounts and adding new active accounts 5,100 potential U.S. accounts performing nerve repair 563 Active accounts as of September 30, 2017 Expand
Slide 11: Expand the Opportunity in Nerve Repair
Expand the Opportunity in Nerve Repair Market Expansion Future Market Development Core Business International Expansion Product Pipeline 12 Expand Product Pipeline & Applications It's time to rethink nerve repair. TM
Slide 12: Breast Reconstruction – Every Woman's Right
Breast Reconstruction – Every Woman’s Right Raise the bar in outcomes for breast reconstruction Size SENSATION Shape Softness Symmetry 13 It's time to rethink nerve repair. TM
Slide 13: Breast Reconstruction Neurotization $250 Million Market Opportunity
Breast Reconstruction Neurotization $250 Million Market Opportunity 307,660 BREAST CANCER PATIENTS5 113,834 MASTECTOMIES6 vs Breast Conserving options (Lumpectomy) 20,650 AUTOLOGOUS RECONSTRUCTIONS7 vs implant based reconstructions 14,500 APPLICABLE PATIENTS4 65% Bilateral 24,000 BREAST RECONSTRUCTI
Slide 14: Commercial Strategy to Breast Neurotization
Commercial Strategy 20 to 25 Breast Neurotization Build Market Awareness •Digital marketing for patients •Increased awareness of the issues and solution through media and PR efforts •Focused co-marketing agreements with Reference Centers Centers Sensation-NOW™ Registry Emphasis on Education •Train r
Slide 15: Exploring Expanded Applications in Neuropathic Pain
Exploring Expanded Applications in Neuropathic Pain Focus on Neuroma Pain Lower Limb TJR Nerve Injuries Est $125M+ • A neuroma is a tangled mass of disorganized nerve and fibrous tissue • If not properly diagnosed and addressed, the management of these injuries require long term pharmacologic treatm
Slide 16: Neuromas Form Following Surgery or Trauma
Neuromas Form Following Surgery or Trauma Neuroma-in-Continuity Stump Neuroma 17 Etiology Examples General Surgery Hernia repair Mastectomy Lap. Cholecystectomy Gynecology surgery C-section Hysterectomy Orthopedics Arthroscopy Amputation Knee replacement Other Causes Post traumatic injury Occipital
Slide 17: AxoGuard Nerve Cap
AxoGuard ® NerveCap • Patented method for protecting against neuromas #9,629,997 U.S. FDA Clearance – K163446 • Indicated to protect a peripheral nerve end and separate the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma Plan to conduct clinical eva
Slide 18: Strategy for Continued Growth
Strategy for Continued Growth Continue to build the AxoGen Platform for Nerve Repair by Increasing Market Awareness Educating Surgeons and Developing Advocates Growing the Body of Clinical Evidence Executing against our Sales Strategy Exploring Expanded Applications for existing products and Introdu
Slide 19: Strong Consistent Revenue Growth & Gross Margin
Delivering U.S. $ in millions Strong Consistent Revenue Growth & Gross Margin $41.1 $4.9 84.4% Gross Margin for the quarter ended September 30, 2017 20 Annual Revenue 53% CAGR 6 Years of Double Digit Growth $27.3 $16.8 $10.9 $7.7 201120122013201420152016 Q3 Revenue 43% Growth $16.0 $11.2 Q3 2016Q3 2
Slide 20: Balance Sheet and Capital Structure
Balance Sheet and Capital Structure September 30, 2017 Debt $25.0 million $25.0 million September 30, 2017 Common Stock Options, RSUs, PSUs 4,484,447 4,484,447 Common Stock and Common Stock Equivalents 37,923,094 38,728,094 *Pro forma amounts reflect the impact of the equity raise which closed on No
Slide 21: Deloitte Technology Fast and Russell 2000 Index
NASDAQ: AXGN Deloitte Technology Fast 500 : 2014, 2015, Russell 2000 Index : June 2016 2016, 2017 22 It's time to rethink nerve repair. TM
Slide 22: Footnotes
Footnotes Noble, et al., “Analysis of Upper and Lower Extremity Peripheral Nerve Injuries in a Population of Patients with Multiple Injuries”, Journal of Trauma, Vol 45, 2008 University of Maryland Medical Center, Carpal Tunnel Syndrome – Surgery. Friedman, “The Prophylactic Extraction of Third Mola