Hls Therapeutics, Inc. · TSX:HLS
Hls Therapeutics — Investor Presentation (September 2020)
20 slides from Hls Therapeutics's investor presentation, Sep 24, 2020
Slide 1: Poised for High Growth
Investor Presentation September 2020 Poised for High Growth TSX - HLS
Slide 2: Forward-looking statements
Forward-looking statements Certain statements in this presentation are “forward-looking statements”. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not alwa
Slide 3: HLS: A growth story in the making
HLS: A growth story in the making TSX: HLS Market Cap2 C$440M US$315 Revenue1 (millions) (C$415) MyCare Insite PERSERIS Trinomia Vascepa Blockbuster Potential: Vascepa C$275-325M peak-year revenue estimate ~500% US$54.2 C$100-130M peak-year (C$72.1) Adj EBITDA estimate Royalty Clozaril Clozaril 2019
Slide 4: Who We Are
Who We Are Canadian-based, North American focused pharma company 2 THERAPEUTIC 7 PRODUCTS US$26.5M Year-to-date1 revenue OPERATIONAL AREAS STRENGTH Cardiovascular 4 in-market & & US$10.9M Central Nervous 3 in pipeline Year-to-date System Adj EBITDA TSX - HLS 1 for the six-month period ended June 30,
Slide 5: Our portfolio
Our portfolio CARDIOVASCULAR (CV) Vascepa Transformative Canada Marketed Trinomia Transformative Canada Pipeline CENTRAL NERVOUS SYSTEM (CNS) Clozaril Foundational U.S./Canada Marketed CSAN Pronto Foundational U.S./Canada Marketed PERSERIS Transformative Canada Pipeline MyCare Insite Transformative
Slide 6: Vascepa: Next pillar in cardiovascular risk reduction
Vascepa: Next pillar in cardiovascular risk reduction “This may be the biggest development in cardiovascular prevention since statins.”1 Deepak L. Bhatt, MD, MPH • Professor of Medicine at Harvard Medical School • Exec Director of Interventional Cardiovascular Programs at Brigham and Women’s Hospita
Slide 7: Vascepa: HLS has exclusive Canadian rights
Vascepa: HLS has exclusive Canadian rights First and only Health Canada-approved drug to reduce the risk of CV events and death in statin- treated patients with elevated triglycerides and other risk factors PEAK-YEAR & BEYOND C$275-325M net revenue potential 35-40% target Adj EBITDA margin C$100-130
Slide 8: Vascepa: REDUCE-IT trial delivered Blockbuster clinical results
Vascepa: REDUCE-IT trial delivered Trial design Trial results 8,200 PATIENTS Primary endpoint Significant reductions on secondary endpoints 11 COUNTRIES CV1 Heart Stroke Surgical 5-YEAR TRIAL Death Attack bypass 25% 20 % 31 % 28 % 35 % Reduction in Major Adverse CV1 Events Blockbuster clinical resul
Slide 9: Vascepa: Characteristics of a category leader
Vascepa: Characteristics of a category leader The Problem Unmet Need The Solution Vascepa #1 Killer LDL- effectively and globally is Residual safely lowers related cardiovascular risk CV events by risk disease 30% up to 2M Canadians in-label TSX - HLS HLS THERAPEUTICS INC. 9
Slide 10: Clozaril: Canadian Market Leader
Clozaril: Canadian Market Leader WHO essential medicine Schizophrenia 1% of population 1/3 patients Do not respond to first line treatment LIFE CHANGING US$45-50M ~ Clozaril can be life changing, (C$60-67M) often the only and last recourse annual revenue for patients not responding to first line tre
Slide 11: CSAN: Patient Portal is our competitive advantage for Clozaril in Canada
CSAN: Patient Portal is our competitive advantage for Clozaril in Canada 200,000 55% 25 dedicated resources blood market tests/year share Sales reps Nurses Physician consultants 50,000 Every week calls to Follow-up with 24/7 availability customers/ 1,300 patients year to ensure CSAN: Clozaril Suppor
Slide 12: PERSERIS: Synergistic to CNS/psychiatry franchise
PERSERIS: Synergistic to PIPELINE CNS/psychiatry franchise Exclusive Canadian rights First once-monthly risperidone long-acting injectable (LAI) Indicated for the treatment of schizophrenia in adults Compelling positioning and well-defined marketing plan 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 Accepted fo
Slide 13: MyCare Insite: Synergistic to CNS/psychiatry franchise
MyCare Insite: Synergistic to PIPELINE CNS/psychiatry franchise Exclusive Canadian distributor Point-of-care device using a single drop of blood to measure the level of six antipsychotic drugs in patients’ blood No product of this type currently exists in Canada 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 Exp
Slide 14: Trinomia: Synergistic to cardiovascular franchise
Trinomia: Synergistic to cardiovascular franchise PIPELINE Exclusive Canadian Rights INDICATION DIFFERENTIATION SECONDARY PREVENTION TRI-COMBO CAPSULE “Polypill” COMPLIANCE/ADHERENCE IMPROVEMENT OF CARDIOVASCULAR EVENTS Patients at risk following an initial CV Aspirin event are poly medicated (7-8 d
Slide 15: Veteran specialty pharma leadership team
Veteran specialty pharma leadership team MANAGEMENT BOARD William Wells | Executive Chairman William Wells | Executive Chairman Former CEO and Director of Biovail Current or former Board roles with: Biovail/Valeant, Medgenesis, ACADIA Pharmaceuticals, EnerCare and Evizone Greg Gubitz | Chief Executi
Slide 16: A business of scale based on two foundational products
A business of scale based on two foundational products With potential blockbuster product, Vascepa, on deck (USD$ millions) FY 2019 YTD 20192 YTD 20202 Product 44.6 22.0 22.4 REVENUE (USD$ millions) Royalty 9.6 4.7 4.1 Total 54.2 26.7 26.5 ADJUSTED 2020 Adjusted EBITDA reflects EBITDA1 31.6 16.4 10.
Slide 17: Strong balance sheet
Strong balance sheet SUMMARY BALANCE SHEET & CAPITALIZATION (US$ millions) At Dec 31, 2019 At Jun 30, 2020 Cash and Cash Equivalents 47.1 33.7 US$25M Senior Secured Term Loan 93.8 91.1 revolving facility Net Debt (Term Loan less Cash) 46.7 57.4 US$ 100M debt expansion facility At Dec 31, 2019 At Jun
Slide 18: Strong cash flow and balance sheet
Strong cash flow and balance sheet Strength Strength Strong cash flow and balance sheet Dividend: C$0.20 per share per year Dividend: C$0.20 per share per year US$315 Experienced leadership (C$415) Experienced leadership Clear value creating strategy Clear Cash value creating strategy flow/Growth/Ex
Slide 19: APPENDIX
APPENDIX Poised for High Growth TSX - HLS
Slide 20: Up to 2M patients in-label
Up to 2M patients in-label 2.8M Canadian Statin Patients Relative Share All Statin 812,000 756,000 of REDUCE-IT Patients population No Diabetes Diabetes or CVD Only High Risk: 29% 27% Diabetes 27% Primary Patients Prevention: in-label CVD 23% Very High Risk: CVD & CVD Secondary Diabetes Only Both 21
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