Sanuwave Health, Inc. · NASDAQ:SNWV
Sanuwave Health — SPAC Merger (September 2023)
21 slides from Sanuwave Health's SPAC merger presentation, Sep 25, 2023
Slide 1: Investor Presentation September 2023
Investor Presentation September 2023
Slide 2: Disclaimer
This presentation (“Presentation”) is for informational purposes only to assist interested parties in making an evaluation with respect to a proposed business combination and related transactions (collectively, the “Business Combination”) between SEP Acquisition Corp. (“SEPA”) and SANUWAVE Health, I
Slide 3: Investment Highlights
3 1 Rapidly growing commercial stage medical device company in the $45 billion US wound care space. FDA approved. Schedule 1 reimbursement. 4 Attractive financial profile: high gross margin business (74%) with 59% of revenues from consumables stream in June Q 2023. Company anticipates adjusted EBITD
Slide 4: UltraMIST Therapy System
4 UltraMIST® Therapy System Durable device, consumable applicator: one per procedure. Indications for use FDA Approved Diabetic Foot Ulcers Pressure Ulcers Venous Leg Ulcers Deep Tissue Pressure Injuries Surgical Wounds A low-frequency, non-contact ultrasound energy delivered through a fluid mist De
Slide 5: Market Opportunity
5 Market Opportunity Growth Drivers Centers for Medicare and Medicaid Services (CMS) and commercial providers increasingly classifying regenerative technology products as medically necessary Aging population Increase in obesity, diabetes, cancers and autoimmune disorders Trend to move “care to the e
Slide 6: Transition to Evidence Based Medicine
6 Transition to Evidence Based Medicine The Wound Care Market is Transitioning to Evidence Based Medicine 1. “Noncontact low-frequency ultrasound therapy in the treatment of chronic wounds: A meta-analysis,” 2011 Driver et al Improved Outcomes Clinical Evidence Improved Reimbursement Increased Usage
Slide 7: Payor Economics Driven by Patient Benefit
7 Recurrence: ~50% of Diabetic Foot Ulcers recur with standard of care. Revascularization resulting from energy treatment may represent a cure, not just symptom relief. Payor Economics Driven by Patient Benefit Cost to close wound in hospital: Energy: $4,5001 VS Skin Substitutes: $14.3k1 Heal time:
Slide 8: UltraMIST Schedule 1 Reimbursement
8 UltraMIST Schedule 1: Reimbursed under CPT code 97610: “low frequency, non-contact, non-thermal ultrasound, including topical application(s), when performed, wound assessment, and instruction(s) for ongoing care, per day” Extremely limited code as nearly all ultrasound devices are contact Reimburs
Slide 9: Unit Economics
9 Unit Economics UltraMIST Unit Price $30,000 Applicators Single Use Price $100 TOTAL ESTIMATED GROSS MARGIN: % * Pricing reflects manufacturer's suggested retail price (MSRP)
Slide 10: Manufacturing Capacity
10 Manufacturing Capacity Move to Dual Source. Simplify and streamline supply chain and production process. Expand consumables production capacity from 6,300 applicators/wk to 24,000 applicators/wk over next 12-18 months 217 334 650 SANUWAVE has been production and supply chain constrained. UltraMIS
Slide 11: Consumables attach rate and pricing drive the model
Consumables attach rate and consumable pricing drives the model: More units in field X Higher use rates X Higher consumable pricing = Rapid growth in recurring revenue ACTIVE ULTRAMIST SYSTEMS IN USE (FUTURE TARGETS, END OF PERIOD) Q2 2023A CY 2023E CY 2024E CY 2025E 526 772 1,422 2,447 $ 650.0 $ 70
Slide 12: Summary
12 Wound care is undergoing a payor led shift to evidence based medicine and reimbursement. This has aligned incentives for Patients, Payors, and Providers. SANUWAVE is in a prime position to benefit: Approved products protected by broad IP Strong existing reimbursement with room to improve Experien
Slide 13: Why a SPAC
13 S implify capital s tructure and provide Nasdaq listing F und company for profitability and commercial success Add new partners with relevant experience and relations hips Why a SPAC
Slide 14: SPAC leadership
14 SPAC leadership Scaling Strong Tech-enabled Businesses SEP Acquisition Corp (ticker: SEPA) Allied Warranty (29x MOIC) Lone Star Repair (34x MOIC) Path Enviro (4x MOIC) Current investments in Glacier Oil (Alaska O&G) Geovox Security (border security tech) HomeTool, Spruce (residential service) Mer
Slide 15: Transaction Summary Overview
15 Transaction Summary Overview Transaction Highlights Deal Structure SNWV’s existing shareholders will roll 100% of existing equity ($77.9M) SEPA will cancel its 8M private warrants for 400K Class A shares Public warrant holder vote to exchange 9M public warrants for 450K Class A shares Valuation T
Slide 16: Management Team
16 Management Team Morgan C. Frank CEO/Chairman Morgan C. Frank joined SANUWAVE as chairman of the board of directors in August of 2022 and became CEO in May 2023. Mr. Frank has been a principal at the life sciences focused investment fund Manchester Management since 2003 and a director of Mancheste
Slide 17: Appendix
Appendix
Slide 18: Advanced Wound Care Continuum
18 Advanced Wound Care Continuum SANUWAVE’s ENERGY FIRST products added to standard of care. ACUTE WOUND CARE CHRONIC / ADVANCED WOUND CARE Wound Discovery Primary Care Physician Specialist Referral Specialist Treatment Wound Closure Weeks 1-2 Weeks 2-4 Weeks 3-5 Weeks 4-6 Weeks 5-12+ Home Treatment
Slide 19: Intellectual Property
19 165+ patents including broad foundational patents in technology for forming penetrating shockwaves and in medical use cases. Cover reflector/electrode commination and structure and application to wounds, lungs, bacterial cleansing, and other applications including software, personalized treatment
Slide 20: dermaPACE System
20 dermaPACE System Great potential for market expansion as data drives wider reimbursement Non-invasive acoustic wave device utilizing proprietary form of high-energy, focused shockwave technology for the repair and regeneration of skin, musculoskeletal tissue and vascular structures Promotes wound
Slide 21: Schedule 3 Reimbursement and dermaPACE Economics
21 Schedule 3: Reimbursed under CPT code 0512T “extracorporeal shockwave for integumentary wound healing, high energy, including topical application and dressing; initial wound.” One of 2 devices that currently qualifies for this code* Reimbursement = $420 in physician office ~80% Medicare reimburse