Atricure, Inc. · NASDAQ:ATRC
Atricure — Merger or Acquisition (August 2019)
25 slides from Atricure's merger presentation, Aug 12, 2019
Slide 1: AtriCure – Transforming the AFib Market: SentreHEART Transaction Overview
AtriCure – Transforming the AFib Market SentreHEART Transaction Overview and Strategic Rationale August 2019 © 2019 AtriCure, Inc. All rights reserved. Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that address activities, events or developments that AtriCure expects, believes or anticipates
Slide 3: Non-GAAP Financial Measures
© 2019 AtriCure, Inc. All rights reserved. Non-GAAP Financial Measures To supplement the Company’s consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, the Company uses certain non GAAP financial measures in
Slide 4: Creating a World Class AFib Platform
Creating a World Class AFib Platform Expands addressable market opportunity substantially into EP Complements future offerings for the treatment of atrial fibrillation Consistent with philosophy for epicardial management of the left atrial appendage Bolsters strategy to build diverse portfolio with
Slide 5: AtriCure – A Solid Foundation
AtriCure – A Solid Foundation © 2019 AtriCure, Inc. All rights reserved. 14.5% H1 2019 Revenue YoY Growth 74% Gross Margin 27 Straight Quarters of Double-Digit YoY Growth Consistent Growth Tripling of Revenues since 2012 ~$100M Cash + Investments as of 6/30/19 Strong Balance Sheet to Support Growth
Slide 6: AtriCure Strategic Overview
AtriCure Strategic Overview Addressing an underserved and growing population of patients © 2019 AtriCure, Inc. All rights reserved. Approximately 17 million chronic AFib patients globally Current standard of care does not adequately address this population Addressing several multi-billion market opp
Slide 7: LAA Market is a KEY Part of Our Growth
LAA Market is a KEY Part of Our Growth Penetrate concomitant ablations New V-Clip platform, guidelines, papers Current growth trajectory is strong; currently 25%+ Establish and validate with MIS ablation market DEEP and CONVERGE therapies studied in clinical trials MIS Clip attachment rate in Conver
Slide 8: AFib Patient Population
AFib Patient Population Developed Countries Anti-arrhythmic drugs and/or anti-coagulants are effective ~50% Paroxysmal AFib (Intermittent) ~35% Persistent AFib ~20% Long-Standing Persistent AFib ~45% Non-Paroxysmal (Continuous) Anti-arrhythmic drugs and/or anti-coagulants are not effective ~50% Wher
Slide 9: Our Recent M&A History: Estech (2013) and nContact (2015)
Our Recent M&A History: Estech (2013) and nContact (2015) Estech and nContact transactions fit directly with our core business of surgical ablation Similar sales channel Complementary technologies Revenue growth accretive to near-term results Able to leverage significant value from technology in fut
Slide 10: SentreHEART Transaction Overview
SentreHEART Transaction Overview An Opportunity to Expand Market and Accelerate Long-Term Growth Rate © 2019 AtriCure, Inc. All rights reserved.
Slide 11: SentreHEART Company Overview
SentreHEART Company Overview © 2019 AtriCure, Inc. All rights reserved. Company founded in 2005 and headquartered in Redwood City, California Manufacturer of devices for remote delivery of sutures for tissue closure Devices currently being studied in the aMAZE IDE clinical trial Evaluating the safet
Slide 12: Total Addressable Market – US Only
Total Addressable Market – US Only © 2019 AtriCure, Inc. All rights reserved. AFib Patients that may benefit from Left Atrial Appendage Management (LAAM) Hybrid aMAZE procedures – using catheter ablation and Lariat system Lariat and AtriClip together offer physicians an epicardial approach to append
Slide 13: Why Did We Buy It - Strategic Rationale
Why Did We Buy It - Strategic Rationale © 2019 AtriCure, Inc. All rights reserved. Direct entry into the Electrophysiology (EP) market EPs control the majority of patients with lone atrial fibrillation EPs are more likely to adopt/recommend therapies they can “control” Further solidifies our commitm
Slide 14: U.S. LAA Closure Management
U.S. LAA Closure Management Open LAA Growth Drivers Broadening awareness of benefits of LAA management (science and society endorsement) Technology-driven benefits (ease of use and closure) Possible retrospective stroke trial; electrical isolation labeling expansion; FLEX·V growth MIS LAA Growth Dri
Slide 15: Transaction Overview
Transaction Overview © 2019 AtriCure, Inc. All rights reserved. Economics Up-front consideration consists of $40 million – mix of cash and stock Contingent consideration components to be paid in a combination of cash and stock Clinical Milestones – up to $140 million on achievement of certain clinic
Slide 16: Therapy Overview
Therapy Overview © 2019 AtriCure, Inc. All rights reserved. Catheters used to deliver a suture loop, slip it around the LAA, and tighten it to close off the LAA Delivered by EP in catheter lab Percutaneous, minimally invasive approach utilizing techniques that are familiar to EPs See “Supplemental I
Slide 17: aMAZE Trial Overview
aMAZE Trial Overview © 2019 AtriCure, Inc. All rights reserved. Description: Prospective, multicenter, randomized (2:1) controlled study to evaluate the safety and effectiveness of the LARIAT System to percutaneously isolate and ligate the Left Atrial Appendage Adjunct to pulmonary vein isolation (P
Slide 18: Projected Financial Impact
Projected Financial Impact © 2019 AtriCure, Inc. All rights reserved. Short to Mid-Term Limited revenue contribution Modest impact to gross margin Expect to incur incremental costs to bring product to market Focus on gathering clinical evidence, supporting PMA process, and securing reimbursement For
Slide 19: Summary
Summary © 2019 AtriCure, Inc. All rights reserved. Key Priorities following SentreHEART acquisition Immediate focus on completing aMAZE trial enrollment, then transitioning to PMA submission process Secure continued access program for additional clinical data in expanded patient populations Continue
Slide 20: Thank You!
Thank You! © 2019 AtriCure, Inc. All rights reserved.
Slide 21: Supplemental Information
Supplemental Information © 2019 AtriCure, Inc. All rights reserved. Note that citations/references for any comments, statistics, or figures in this presentation are available upon request.
Slide 22: LARIAT Procedure: Access and Delivery
Access: Routine percutaneous techniques for pericardial and transseptal access are performed using fluoroscopy and transesophageal echocardiography. Delivery: Two magnet-tipped guidewires (FindrWIRZ) are attached to stabilize the LAA with minimal trauma and manipulation for delivery of the LARIAT. 1
Slide 23: LARIAT Procedure: Delivery and Capture
3 Delivery: The LARIAT snare is delivered over the epicardial FindrWIRE to the apex of the LAA. Capture: The LARIAT snare is positioned to the base of the LAA using the EndoCATH balloon for anatomic land marking of the optimal closure site. 4 LARIAT Procedure
Slide 24: LARIAT Procedure: Closure and Removal
Closure: The LARIAT snare is closed and the FindrWIRZ and the EndoCATH are removed prior to release and tightening of the suture. 5 6 Removal: The suture is released and tightened at the base of the LAA and the LARIAT is removed. The SureCUT suture cutter is used to remotely cut the excess suture. L
Slide 25: LARIAT Procedure: Result
Result: The LAA is both mechanically and electrically isolated at its base. After approximately 90 days, the LAA will completely atrophy and disappear. LARIAT Procedure