Koru Medical Systems, Inc. · NASDAQ:KRMD
Koru Medical Systems — Q2 2024 Earnings Presentation
16 slides from Koru Medical Systems's earnings presentation, Aug 7, 2024
Slide 1: KORU Medical Systems Q2 2024 Earnings Call
KORU Medical Systems Q2 2024 Earnings Call August 7, 2024 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 regarding our expectations for future performance, including but not limited to the existence and timing of
Slide 3: Strong Second Quarter Execution on 2024 Key Milestones
Strong Second Quarter Execution on 2024 Key Milestones 1 22% Y/Y revenue growth for Q2, record high quarterly revenues 2 Core business Y/Y growth of 20%, driven by SCIg market growth, share gains, and geographic expansion Advancement towards commercialization across two novel therapies collaboration
Slide 4: Progress on Vision 2026 Strategic Growth Pillars
Progress on Vision 2026 Strategic Growth Pillars Protect and Grow Broaden our relevance with Expand Internationally Domestic Core SCIg Business Novel Therapies Domestic Core growth International Core growth 16 collaborations in total 14% y/y growth; Double-digit 46% y/y growth 3 signed in 1H24, 6 po
Slide 5: Healthy and Growing US Ig Market with Increasing Penetration into SCIg
Healthy and Growing US Ig Market with Increasing Penetration into SCIg Future SCIg Growth Drivers 1 Total US Ig Market, Historical and Forecasted Increasing SCIg Penetration US represents ~40% of SCIg Global TAM, 5 year Ig CAGR: 7% SCIg only 20% penetrated 268K 250K 234K 218K 194K 198K Recurring Pat
Slide 6: Geographic Expansion Efforts Focused on Increasing Penetration and New Market Entries
Geographic Expansion Efforts Focused on Increasing Penetration and New Market Entries Currently marketed in 25 OUS countries worldwide $40M 1 US TAM $60M TAM Outside the US - focused on increasing penetration with ~10% + KORU current share Driving entry and expanded $60M 1 penetration in top SCIg ma
Slide 7: 6 New KORU Drug Collaboration Launches Expected by 2026
6 New KORU Drug Collaboration Launches Expected by 2026 $2.7B TAM(1) Across 16 Total Collaborations 19 Open Opportunities 2.1M Global Patient Population(2) Patient Population Novel Therapies (000’s) Phase I Phase II Phase III Drug Launch Date(3) KRMD Clearance Hematology 15 May 2021 May 2022 Recent
Slide 8: Q2 Y/Y Revenue by Business
Q2 Y/Y Revenue by Business Net Revenues; In Millions Domestic Core • Increased 14% y/y $8.4 • Driven by higher consumable volumes due to new 22% $0.6 patient starts and share gains $6.9 International Core $0.4 $1.6 • Increased 46% y/y • Improved Ig supply y/y $1.1 • Increased penetration in CIDP/SID
Slide 9: Improved Gross Margin Profile
Improved Gross Margin Profile Driving margin improvement with Gross Margin four consecutive quarters >60% Second Quarter: 65.0% • Fourth consecutive quarter >60% • 890 basis points improvement y/y 63.1%* • Increased manufacturing efficiencies driving lower 890 COGS bps • Improved Novel Therapies +60
Slide 10: Improved Cash Management/Operating Leverage
Improved Cash Management/Operating Leverage Cash Balance as of June 30, 2024: $10.5M Key Drivers $10.8M ($0.2M) ($0.3M) $0.2M • Q2 cash usage of $0.3M $10.5M • Net loss of ~($0.2M) excluding non- cash items, a $1.9M improvement over PY • Investing / Financing activities mostly driven by timing of ca
Slide 11: Cash on Track to Breakeven
Cash on Track to Breakeven Cash burn improving with expected 2024 ending cash balance of Key Drivers ≥$8.0M • Substantially reduced y/y cash burn $17.4M with low cash usage of $1M in 1H 2024 ($5.9M) • Expect 2H 2024 cash usage to be higher than 1H, peaking in Q3 driven $11.5M by capex investments an
Slide 12: Raising 2024 Guidance
Raising 2024 Guidance Revenue Gross Margin Cash & Growth Profile Cash Flow Increased to $32.0- Increased to 61-62%2 Greater than $8M $32.5M, 12-14% growth1 ending cash balance Key Drivers/Milestones Key Drivers/Milestones Key Drivers/Milestones • SCIg drug market growth of • Geographic expansion int
Slide 13: Continued Progress on Vision 2026 Key Milestones
Continued Progress on Vision 26 Key Milestones Double-digit revenue growth versus FY2023 Accelerating Core growth with new patient starts, share gains, and continued International expansion Progressing Novel Therapies pipeline with 6 potential commercial launches by 2026 – continued focus on late-st
Slide 14: Appendix
Appendix 14
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes the non-GAAP financial measures “adjusted EPS”, "adjusted diluted EPS“, “adjusted gross margin”, and “adjusted EBITDA” that are not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-G
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of GAAP Net Loss Three Months Ended June 30, Six Months Ended June 30, to Non-GAAP Adjusted EBITDA: 2024 2023 2024 2023 GAAP Net Loss $ (988,715) $ (2,495,886) $ (2,924,673) $ (4,906,771) Tax (Benefit)/Expense * (189,754) (599,995) (578,429) (1,177,395) Val