Slide 1: Cyclopharm Limited FY2015 Audited Results
For personal use only Cyclopharm Limited Building a profitable and growing market leader in nuclear medical imaging and pulmonary healthcare FY2015 Audited Results James McBrayer, CEO 17 March 2016
Slide 2: Contents
Contents For personal use only • Business Overview • 2015 Financial Results and Performance • Product Overview and Growth Opportunities o Technegas o UltraluteTM • Summary and Outlook 2
Slide 3: CYC's 10 Fast Facts
CYC’s 10 Fast Facts For personal use only 1. Technegas is a well established proprietary world leader in functional lung ventilation imaging technology with major revenues generated by single patient consumables 2. Technegas is sold in 55 countries with significant expansion opportunities in the USA
Slide 4: Our History
Our History For personal use only 1984 1992 2000 2001 2007 2013 Technegas European Vita Life USFDA Technegas UltraluteTM discovered & markets Sciences program Plus technology commercialisation established acquires initiated for generator established and trading as Tetley Tetley Technegas launched co
Slide 5: Our business lines
Cyclopharm Our business lines For personal use only Manufacturer and • Track record of growing revenue, distributor of pulmonary profits and cash flows ventilation imaging devices and • FDA trials for sales in USA progressing equipment • Preliminary results of trials indicate (Technegas) that Techne
Slide 6: CYC Strategy
CYC Strategy For personal use only CYC has clear strategy to leverage our position as a leading player in the global nuclear medicine imaging market and strong balance sheet to expand the use of our proprietary products and introduce new innovative technology. We will do this by: • Attaining approva
Slide 7: 2016 Priorities
2016 Priorities For personal use only Technegas • Indication Expansion Complete COPD Trial in China and publish results by Q4 2016 Implement clinical marketing strategy targeting the referring physician Q2 2016 • United States Food and Drug Administration Approval Finalise partnership model wi
Slide 8: Growth Opportunities and Key Performance Indicators: Technegas
Growth Opportunities and Key Performance Indicators For personal use only Technegas USA • The USA represents the single largest market with half of the world’s nuclear medicine departments located there • Existing market for PE in the USA equates to ~480,000 patients per annum • First priority follo
Slide 9: Growth Opportunities and Key Performance Indicators: Ultralute
Growth Opportunities and Key Performance Indicators For personal use only Ultralute Market Europe targeted as the primary market to launch due to the highest concentration of end user Mo99 generators in Penetration the world 1st Generation targeted for launch in Germany at the EANM in October 2015 w
Slide 10: 2015 Financial Results and Performance
For personal use only 2015 Financial Results and Performance
Slide 11: 2015 Highlights
2015 Highlights For personal use only FINANCIAL Record sales of $12.6 million (+4.4% vs. 2014) Record Technegas division operating EBITDA of $2.3 million (+6.2% vs. 2014) Record NPAT of $4.8 million (vs. $4.1m in 2014), includes: • Technegas division NPAT: $1.7 million; and • Net insurance set
Slide 12: Technegas – FY15 Performance
Technegas – FY15 Performance For personal use only Second Consecutive Year of Record Results Year ended 31 December ($000’s) 2015 Change 2014 Change 2013 • Another record Technegas Results: financial result in Sales Revenue FY15 PAS 10,145 ↑ 8.1% 9,384 ↑ 9.3% 8,583 • PAS margins Generators/service 2
Slide 13: Group Profit & Loss
Group Profit & Loss For personal use only Record Sales and Underlying Profit Year ended 31 December ($000’s) 2015 2014 • Technegas continues to perform Underlying Results1: strongly Revenue 12,583 12,047 • Price increases and ongoing cost Technegas EBITDA 2,980 2,638 reduction initiatives drove Cycl
Slide 14: Group Balance Sheet
Group Balance Sheet For personal use only Balance Sheet strong Year ended 31 December ($000’s) 2015 2014 • Improved cash position Cash 6,445 3,268 driven by strong cash flows from Other current assets 6,653 5,582 operations Non-current Assets 3,443 2,111 • Capacity to fund growth Total Assets 16,541
Slide 15: Cash Flow
Cash Flow For personal use only Cash Flow • Strong cash reserves available to fund near to medium term growth opportunities • Investment Activities in 2015 included FDA, Ultralute & Technegas product development • Significant one-off cash upside in 2014 ($2.65m) from litigation mediation and in 2015
Slide 16: Technegas
For personal use only TECHNEGAS The world leader in diagnostic lung ventilation imaging
Slide 17: Technegas
Technegas For personal use only More accurate and sensitive ventilation imaging agent widely used in diagnosing Pulmonary Embolism Three parts to the technology: generator (TechnegasPlus Generator), aerosol tubing (Patient Administration Set / “PAS”) and crucible (creates the nanoparticles for i
Slide 18: Nuclear imaging: Technegas' superior performance
Nuclear imaging: Technegas’ superior performance For personal use only Technegas advantages • Over 3.5m patient studies without a single reported adverse patient event • A superior alternative to CTPA (angiograms) in nuclear medicine imaging • Better clinical results at a fraction of the high radiat
Slide 19: Technegas Sales Revenue
Technegas Sales Revenue For personal use only Consistent Organic Revenue Growth Patient Administration Sets (PAS) • PAS revenue up 8% from 2014 • PAS volumes up 3% from 2014 • French sales rebound in second half as predicted • PAS volumes up in majority of major markets Technegas Generators • Genera
Slide 20: Technegas Volume – Generators and PAS
Technegas Volume – Generators and PAS For personal use only Organic Growth in the majority of markets • Europe remains our largest regional Technegas market • France volumes rebounded in second half 2015 as advised • Canada is now our largest single country market with 12 consecutive years of PAS gr
Slide 21: Technegas Overview: Average Unit Price and Margins
Technegas Overview Average Unit Price and Margins For personal use only • Technegas Revenues are heavily weighted on PAS o PAS = 81% of Technegas sales o Generators = 13% of Technegas sales • Unit price improvements for PAS and Generators continue in 2015 • PAS margins improvement continues driven b
Slide 22: Technegas: Expanding the global footprint
Technegas Expanding the global footprint For personal use only • Technegas sold in 55 countries − Europe is the largest regional market for Technegas − In 2014 Canada became largest country market for Technegas surpassing France • Over 3,500,000 patient studies since 1986 • 1,500 Technegas generator
Slide 23: Agency vs Distributor Models
TECHNEGAS OVERVIEW Agency vs Distributor Models For personal use only • The majority of Technegas sales are generated through Distributors • Technegas is distributed directly in Australia, New Zealand, Canada and Germany • Distributors allow for low cost market entry at the compromise of full market
Slide 24: Technegas – Clinical Trial Program Overview
Technegas – Clinical Trial Program Overview For personal use only USA – Region Expansion Targeting existing Pulmonary Embolism (PE) market Structural ventilation study comparing Xe133 vs. Technegas to allow the sale of Technegas in the USA Market Size: Half the world’s nuclear medicine departments
Slide 25: Technegas – Global Indication Expansion
Technegas – Global Indication Expansion For personal use only Additional indications and applications Targeting Chronic Obstructive under review to include Asthma, Lung Pulmonary Disease (COPD) market Reduction and CTEPH* Evaluating the effectiveness of Technegas in early Technegas can provide the c
Slide 26: Technegas Indication Expansion – COPD
Technegas Indication Expansion – COPD For personal use only • The Global incidence of Chronic Obstructive Pulmonary Disease (COPD) is 30x greater than that of Pulmonary Embolism (PE) • It is estimated that by 2020, C.O.P.D. will be the 4th highest cause of death globally. By 2030 COPD will be the 3r
Slide 27: New Clinical Indications: Clinical Marketing Project
New Clinical Indications Clinical Marketing Project For personal use only Program Objectives Expand the use of Technegas in our major markets by engaging referring respiratory physicians by targeting chronic lung conditions Program Overview: Cyclopharm will initiate and support a series of clinical
Slide 28: Ultralute
For personal use only ULTRALUTETM Innovative, first-in-class, disruptive, proprietary technology used to improve radiopharmaceutical manufacturing efficiency and health care cost effectiveness
Slide 29: Ultralute Product Overview
UltraluteTM For personal use only Product Overview: • Disruptive Technology – changes 60 years of how radiopharmaceuticals are manufactured • Extends the effective life of Mo-99 generator up to 50% • Each cartridge consumable designed for a maximum of 10 uses • Patents secured in 2014 • Will be desi
Slide 30: Ultralute: Targeting Direct Users of Mo99
UltraluteTM Targeting Direct Users of Mo99 For personal use only • UltraluteTM v1 is targeted at the clinical end-user market that sources Mo99 Generators directly from manufacturers • The European Mo99 generator market is completely Direct • Ultralute registration in the EU has been determined to b
Slide 31: Ultralute Generational Overview
UltraluteTM Generational Overview For personal use only • Designed for the end user application GEN 1 • Introduced to market Q4 2015 with revenues commencing H2 2016 • Designed for radiopharmacy application GEN 2 • Development will commence in 2016 for 2017 market introduction • Designed for n,Gamma
Slide 32: Summary & Outlook
For personal use only SUMMARY & OUTLOOK
Slide 33: Summary & Outlook
Summary & Outlook For personal use only • CYC is a well established, profitable biotech, with recurring cash flows predominantly generated from a line of consumable products • CYC is financially stable, fiscally disciplined and has recorded its second year of consecutive record revenue and profit in
Slide 34: Appendix Section
For personal use only APPENDIX SECTION • MMI • OVERVIEW OF RISKS • DISCLAIMER
Slide 35: Macquarie Medical Imaging
Macquarie Medical Imaging For personal use only PET • Joint venture with: X-Ray • 50% Alfred Health Solutions CT • 30% Macquarie University • 20% Cyclopharm • Comprehensive suite of imaging modalities Cardiac CT • State of the art research platform MRI • Growth and profitability linked to ramp-up of
Slide 36: Review of Major Risks
Review of Major Risks For personal use only Risks Overview Competing Technegas Even after 30 years of clinical use, Technegas’ unique characteristics combined with improved technologies imaging equipment and techniques is more effective today in diagnosing Pulmonary Embolism than it was when it was
Slide 37: Disclaimer
Disclaimer For personal use only Certain views expressed here contain information derived from publicly available sources that have not been independently verified. The presentation includes certain statements, estimates and projections with respect to the anticipated future financial performance of