Modular Medical, Inc. · NASDAQ:MODD
Modular Medical — Investor Presentation (June 2022)
27 slides from Modular Medical's investor presentation, Jun 13, 2022
Slide 1: Investor Presentation
Investor Presentation . NASDAQ:MODD
Slide 2: Forward Looking Statements, Other Disclaimers
2 | Forward Looking Statements, Other Disclaimers . This presentation includes forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amende d; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private
Slide 3: Corporate Overview
3 | Modular Medical is a development stage medical device company seeking to produce a next generation insulin pump to expand access to a higher standard of glycemic management for people with diabetes. Founded by Paul DiPerna , founder of Tandem Diabetes (TNDM) and original designer of its popular
Slide 4: Current Market
4 | Represent the gold standard in glycemic control. Better outcomes, better patient health, lower A1C. (Market share leaders: Medtronic, Tandem, Insulet ) Insulin Pumps Better outcomes lead to systemic savings: fewer trips to ER, reduced comorbidities. Saves $10k/patient year (40%) even after cost
Slide 5: US Market Size
5 | US Market Size . 27 million people with diabetes. 3.6 million require daily insulin (1.6M Type 1, 2.0M Type 2). Pumps CGM MDI 670,464 1,718,919 2,908,056 Pumps CGM MDI Patient Estimates (2020) Patients estimates device type and therapy are for T1D and T2D combined. MDI defined as needing rapid a
Slide 6: Freestyle Libre made continuous glucose monitoring more accessible
6 | Abbott Freestyle Libre made continuous glucose monitoring easier and more affordable. This expanded the product category and doubled its size. We believe the insulin pump market is ready for a similar transition. FreeStyle Libre vs. Dexcom Revenue 0 100 200 300 400 500 600 700 800 2Q16 4Q16 2Q17
Slide 7: $3B US market of almost pumpers
7 | 1.2M T1D MDI 28% of T1D MDI ($1.37B) 25% of T2D MDI ($1.63B) $3B US market of almost pumpers. 1.6M T2D MDI *Seagrove Partners LLC, HCP Perspectives August 2021. HCPs fairly consistently indicated that about 25% of their MDI population are “almost pumpers”, meaning that they have considered going
Slide 8: What are almost pumpers asking for?
8 | What are almost pumpers asking for ? Seagrove Partners LLC, HCP Perspectives August 2021 Precision Xtract September 2018 Bottom line: “I cannot spend more time managing my diabetes.” Make it easy for me Make it easy for my doctor Make it easy to get coverage Make it easy to share my data with my
Slide 9: MODD1 Insulin Delivery for Almost Pumpers
9 | MODD1 Insulin Delivery for Almost Pumpers . Eliminate trade offs to expand the market. No external controller required No charging or battery replacement Removable Push button to bolus 90 - day reusable pump 3 - day cartridge Only patch pump with full sized 3ml reservoir. Latest low power Blueto
Slide 10: MODD Technology Designed to Provide Precision and Safety
10 | MODD Technology Designed to Provide Precision and Safety . MODD Pumping Mechanism Disposable Cartridge Rotating Cam Precision micro - dosing limits excessive insulin exposure and preserves insulin molecule integrity* Can be used with the latest ultra rapid insulins* More continuous insulin deli
Slide 11: Simple Design Enables Automated, High-Volume Manufacturing
11 | Simple Design Enables Automated, High - Volume Manufacturing . Insulet Omnipod MODD1
Slide 12: Provider and patient go-to-market, telehealth
12 | Provider ▪ Direct sales Force Focused on Providers ▪ Free Samples to Encourage Trial ▪ Point of Prescription Couponing ▪ Simple to Teach and Support Patients Patient ▪ Only product that you can take home today from doctor's office ▪ App to Learn Product ▪ Free 30 - Day Trial Coupons ▪ Co - Pay
Slide 13: Designed to attain preferential reimbursement
13 | Our products are designed to attain preferential reimbursement and avoid the coverage pitfalls many other pumps have experienced. Retained ISA to perform National Payors Survey on 1/3 of all commercial lives in US (50 million lives) Payor Benefits: Payor Preferred . ▪ 20% Discount vs Insulet (P
Slide 14: Unit Economics
14 | Unit Economics . 90 Day Re - Usable Price: FREE Cost: $34 3 Day Disposable Price: $34.4 * Cost: $7.68 First month: 1 Re - Usable + 10 Disposables Price: $344 Cost: $34 + $76.80 = $110.80 Gross Profit: $233.20 68 % Profit Margin Subsequent 2 Months: 10 Disposables Price: $344 Cost: $76.80 = $76.
Slide 15: Business Model
15 | Business Model . New microfluidics technology allows for low - cost pumping of insulin. New design philosophy makes product simple enough for provider driven sales. Enables a classic pharma style business model And a more rapid path to profitability. $4,128 Revenue Per P atient/Year 1 75 % Gros
Slide 16: Timeline
16 | 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Timeline . Approval: 510(k) Predicate device approval pathway for FDA label. Same label as Omnipod . Testing is based on benchtop tests , no human trials required (no insulin pump has done pre - approval human trials) Submission: First FDA meeting was held in N
Slide 17: Product Roadmap: The Path to the Artificial Pancreas
17 | 1 2 3 MODD 1 (Basal with user Bolus) MODD 1+ (Cell phone controlled adjusted by algorithm) MODD 2 (Autonomous, multiple chamber, drug revenue) The Path to the Artificial Pancreas Product Roadmap . Currently under research and development, not available for investigational use or sale
Slide 18: MODD1+ Cell Phone Controlled
18 | Allows algorithms to adjust basal rate for meals and exercise. CGM Integration Allows use of user's own cell phone as controller. No dedicated controller required. 2 - Factor Authentication Same modular design and ease of use as MODD1, with enhanced control functionality. Ease of Use Enhanced M
Slide 19: MODD2 The Future of Care
19 | Allows Algorithms to Adjust Basal Rate For Meals and Exercise CGM Integration Allows use of Cellphone As Controller 2 Factor Authentication Same Modular design and ease of use as Pivot G - 1, with enhanced control functionality. Ease of Use Enhanced Modular Patch Pump: Cell Phone Controlled 75%
Slide 20: EU: Single-Payors Want Lower Overall Costs
20 | 3 European countries in Top 10 countries for highest number of children and adolescents with T1D 2 European single payor systems avoid upfront costs, instead preferring low initial cost and a strong relationship between cost and health outcomes Pumps have had limited success in UK and Germany $
Slide 21: The Team
21 | The Team . Paul DiPerna Chairman & CTO 30 years of experience in medical device industry Led over 10 projects to FDA approval Founder Tandem Diabetes (TNDM:NAS) Tandem Diabetes Care – 510k approval on their T - Slim – 2012 National Cardiac – 510k approval on a disposable EKG sensor - 2018 Ivera
Slide 22: Share Structure
22 | Share Structure (as of May 2, 2022) Shares Outstanding* 12.3 M Price Per Share $4.32 Market Cap $53 M Executive & Insider Ownership 44% Warrants at $6.00 strike 768 K Warrants at $6.60 strike 5.4 M Employee Stock Options at $7.56 Weighted Average 1.9 M Stock Information Listing NASDAQ Symbol MO
Slide 23: Investor Relations
23 | Investor Relations ir@modular - medical.com NASDAQ:MODD
Slide 24: Appendix
24 | Appendix .
Slide 25: T1D Insulin Pump Comparisons (US Market)
25 | Reservoir Size 300 units/3mL 300 units/3mL 300 units/3mL 200 units/2mL Pump Cost Pump: $0 3 - Day Disposables: $349/month (PBM Pricing) Pump: $4,200 Disposables: $134/month Pump: $4,600 Disposables: $148/month Pump: $0 Disposables: $437/month (PBM Pricing) Monitorable Via Cell Phone Yes No Yes
Slide 26: Artificial Pancreas Will Be Multi-Chamber
26 | Allows Algorithms to Adjust Basal Rate For Meals and Exercise CGM Integration Allows use of Cellphone As Controller 2 Factor Authentication Same Modular design and ease of use as Pivot G - 1, with enhanced control functionality. Ease of Use Enhanced Modular Patch Pump: Cell Phone Controlled Art
Slide 27: MODD Clinical Advisors
27 | MODD Clinical Advisors . Bruce Bode, MD: Among the top tier of insulin and insulin pump kols in the world ( atlanta , practicing) Orville Kolterman, MD: Led the development of symlin (pramlintide) and byetta / bydureon (exenatide) at amylin pharmaceuticals (san diego , practicing) Poul Strange,