Arcticzymes Technologies Asa · OSL:AZT
Arcticzymes Technologies Asa — Q1 2023 Earnings Presentation
28 slides from Arcticzymes Technologies Asa's earnings presentation, 2023
Slide 1: ArcticZymes Technologies
A ArcticZymes Technologies
Slide 2: Agenda
Agenda 1 Highlights – Q1 2023 2 Business Update 3 Financials 4 Summary
Slide 3: Highlights Q1 2023
Highlights Q1 2023 Achieved Quarterly Drug Master File First SAN order Sales (DMF) on track to from global CDMO 31.2 MNOK file end Q2 2023 Fujifilm Diosynth EBITDA Launched 1 new Performance product & filed 1 6 MNOK new patent 3
Slide 4: Business update
Business update
Slide 5: CEO Search Process
CEO Search Process • CEO resigned March 2023. Effective date Sept. 30th, 2023 • Coulter Partners hired to search • Significant interest in position • Good candidates are in high demand • Location in Tromso is main concern Kick-off Research Contact Screen Assess Present Complete Kick-off client T
Slide 6: Building out the product portfolio
Building out the product portfolio Newly launched product & pending products New Product Introduction! ArcticZymes Proteinase HQ launched 18th April B2B market version existing ArcticZymes Proteinase, with expanded ✓ ArcticZymes Proteinase HQ Quality documentation package. E.g., Quality Statements f
Slide 7: New patent application
New patent application RNA therapeutics «New nuclease enzyme composition and method-of-use in the processing & analysis of RNA for therapeutic purposes» Marker 50 base F 42 b 26 base + F 22 b 14 b High Low Zero Increasing Enzyme Concentration • Discovery phase project for new sequence specific RNA e
Slide 8: The Drug Master File (DMF) for SAN HQ "GMP grade"
The Drug Master File (DMF) for SAN HQ “GMP grade” Priority one project first half of 2023 A Drug Master File is a FDA submission document that typically contains detailed confidential information about the Chemistry, Manufacturing, and Controls (CMC) of a component of a drug product. DMF is not requ
Slide 9: Post DMF Submission
Post DMF Submission Outline of Process Filing DMF Formal FDA website lists LOA FDA conducts assessment by DMF as “Available (Letter of complete End Q2 2023 FDA for Reference” Authorisation) Technical Review • Checked for • Customers submit format & content LOA to FDA (30 days) • Authorised by AZT •
Slide 10: Recent Publication
Recent Publication Compelling Evidence to Support our Biopharma Product Range The salt-tolerant endonucleases SAN and M-SAN were more efficient in the removal of chromatin compared with the non-salt-tolerant endonucleases Benzonase® and DENARASE®. “Many researchers and bioprocess engineers are not a
Slide 11: University College London Poster
University College London Poster M-SAN HQ for purification of Lentiviruses M-SAN HQ was benchmarked against Benzonase for removal of host-cell DNA from Lentiviruses intended for CAR- T based cell therapy. M-SAN HQ was preferred due to: Saves cost: >4-fold better DNA removal per unit Saves time: Fast
Slide 12: SAN GMP – pre-launch data
SAN GMP – pre-launch data Benchmarking Relative activity of test nucleases across a range of salt SAN Benzonase Denarase (NaCl) concentrations GMP 100,0 AAV Salt ✓ 90,0 tolerance 80,0 ISO13485 ✓ ✓ ✓ 70,0 Relative activity (%) 60,0 Scale ✓ ✓ ✓ 50,0 ELISA kit ✓ ✓ ✓ 40,0 GMP ✓ ✓ ✓ 30,0 grade/DMF 20
Slide 13: Sales & Marketing: Key areas to improve in 2023
Sales & Marketing: Key areas to improve in 2023 Commercial Excellence Demand Generation Collaboration • Execute price increase of 8.5% from • Laser sharp focus on generating • Closer collaboration between January 1, 2023 new business with Key Accounts Market Development Managers • Execute Shipping &
Slide 14: Tapping into the Chinese growth opportunity
Tapping into the Chinese growth opportunity Through Nordic collaboration CAGR for Gene Therapy in China 28.6% - 33.8% Over next 6 years, reaching $1.9 to $3.3B* “Driving Growth Together in China” 14 * Research and Markets Grand View Research, Transparency Market Research
Slide 15: Sales
Sales
Slide 16: Sales per area: Molecular Tools
Sales per area Commercial 35 30 25 Molecular Tools Sales in MNOK 20 15 ✓ Quarterly sales 16.4 MNOK ✓ Accounts for 52% of total Q1 sales 10 ✓ Research and Diagnostics contribution to Q1 sales 5 were 26% and 26%, respectively ✓ Research – large orders from key customers after 0 slow end to 20222 Q1 20
Slide 17: Estimated Coronavirus related sales
Sales Estimated Coronavirus related sales Commercial 18 16 14 12 Sales in MNOK 10 Covid related sales 8 ✓ 0 MNOK in Covid related sales for Q1 6 ✓ Q1 2022 had 14 MNOK 4 ✓ Headwind for sale of COD Ung in Q1 (as expected and announced) 2 ✓ Expect to achieve only marginal sales from Corona- 0 virus Q1
Slide 18: Sales per area: Biomanufacturing
Sales per area Commercial Sales per area 25 Biomanufacturing 20 15 Sales in MNOK Biomanufacturing 10 ✓ Quarterly sales 14.9 MNOK (21% decline) ✓ Continuous positive trend we’ve seen last years 5 ✓ Accounts for 48% of total Q1 sales ✓ Drug Master File (DMF) submission for SAN HQ to the U.S. FDA is “a
Slide 19: 12 month rolling average quarterly sales
12 month rolling average quarterly sales Expect growth to pick up again…. 40 See signs of market normalising Sales development Number of orders increased by 3% to 408 35 Sales development ex Covid-19 28 new customers in Q1 30 Nothing fundamentally has changed 25 Growing markets MNOK 20 Attractive an
Slide 20: Geographical Sales Contribution
Business Updates Commercial Geographical Sales Contribution Americas EMEA APAC 2021 39 % 48 % 13 % 2022 Americas EMEA APAC 44 % 45 % 11 % Q1 Americas EMEA AP. 2023 52 % 44 % 4% 20
Slide 21: Currency impact
USDNOK Currency impact 11 Weak Norwegian Krone 10,5 10 Majority of revenues are in foreign currency 83% in USD and 17% in EURO for Q1 9,5 68% in USD and 31% in EURO for 2022 9 Currency effect on P&L 8,5 Finance +0.6 MNOK in Q1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Other operati
Slide 22: Expenses and profitability
Expenses and profitability
Slide 23: Organisation
Organisation Productive and efficient Number of employees 31.12 70 Ambition and strategy has been to grow company organically 60 0% increase in employees in Q1 61 employees per 31.03.2023 50 40 Administration 9% 30 R&D Business 39 % development and marketing 20 21 % 10 QA and 0 regulatory Operations
Slide 24: Profitability and expenses
Profitability and expenses Looking at improved profitability Sales & EBITDA 60 EBITDA Sales EBITDA Q1 - MNOK 6.1 vs 27.9 (13.9 Covid adjusted) 50 40 Expenses increased by 3.7 MNOK in Q1 Personnel, consumables and IPR MNOK 30 20 Full year expenses: 105 MNOK (2022: 91 MNOK) Personnel 75 MNOK (2022: 59
Slide 25: Cash flow
Cash flow - 11.7 MNOK in cash flow for Q1 Net Cash (MNOK) 250 30 Changes in Cash (MNOK) 240 25 230 20 220 15 Changes in cash (MNOK) 210 Net Cash (MNOK) 10 200 5 190 180 - 5 170 160 - 10 150 - 15 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 25
Slide 26: Outlook
Outlook
Slide 27: Outlook 2023
Outlook 2023 Committed to achieve its strategic goals through organic and inorganic growth. Fundamental business remains strong and therefore we expect annual sales to grow from 2022 to 2023. Capitalise on organic investments carried out in 2022 through productive organisation while having an opport
Slide 28: Thank you Q&A Session
Thank you Q&A Session arcticzymes.com
ArcticZymes Technologies — Q1 2023 Earnings Presentation on 6ix