Cogstate Ltd · ASX:CGS
Cogstate — H1 2023 Earnings Presentation
31 slides from Cogstate's earnings presentation, Feb 28, 2023
Slide 1: Cogstate 1H23 Results Presentation and Investor Webinar
ASX Announcement 28 February 2023 For personal use only Cogstate 1H23 Results Presentation and Investor Webinar Cogstate Ltd (ASX:CGS) has today released an Investor Briefing that provides a summary of the financial results for the half-year ended 31 December 2022 and also provides commentary in res
Slide 2: Investor Update
For personal use only Investor Update Financial results for the half-year ended 31 December 2022 Presented February 2023 © 2023 Cogstate Ltd. All rights reserved.
Slide 3: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Cogstate Limited (‘Cogstate’). The information in this presentation is of a general nature and does not purport to be complete, nor does it contain all the information which would be required in a prospectus prepared in accordan
Slide 4: Mission to democratize brain health assessment
We are on a mission to democratize brain For personal use only health assessment across clinical research and clinical care... combining proven science with disruptive digital innovation to make the measurement of cognition as simple, standardized, actionable and common as the measurement of blood p
Slide 5: Company Snapshot
Company Snapshot Cogstate was founded in Melbourne, Australia, Cogstate is a leading neuroscience technology company where approx. 25% of our workforce is based. We For personal use only optimizing brain health assessments to advance the have a small presence in the UK, and Japan but development of
Slide 6: Financial Results
For personal use only Financial Results 6
Slide 7: 1H23 Financial Highlights
1H23 (Jul-Dec 2022) Financial Highlights (All figures in US$) For personal use only Clinical Sales Contracts Executed Contracted Future Revenue $27.3m $146.7m $27.9m before cancellations / -50% reconciliations +10% Strong contracted revenue pipeline Group Revenue Clinical Trials Margin $19.5m 46% Cl
Slide 8: Contracted Revenue Backlog
Contracted Revenue Backlog Year-On-Year Growth in Revenue Backlog The long-dated contractual nature of For personal use only Cogstate revenue provides revenue predictability and insight into future revenue performance. $146.7m Backlog at 31-Dec-22, up 10% year-on-year • Clinical Trials Backlog $110.
Slide 9: Contracted Revenue Run-Off
Contracted Revenue Run-Off 45 For personal use only 40 2.1 35 4.2 Analysis of revenue to be 30 Recognised in Future Periods 17.8 4.2 US$ Millions 25 Current PCP As at As at Growth Annual 20 4.2 Dec-22 Dec-21 US$ Change US$ US$ % 32.6 15 26.8 Yr 1 39.4 41.0 (1.6) (4%) 4.2 10 19.5 Yr 2 36.8 30.7 6.1 2
Slide 10: FY24 Clinical Trials Contracted Revenue
FY24 Clinical Trials Contracted Revenue $32.6m For personal use only • Up from $28.8m at 01-Jul-22 (up 13%) • Compares to $26.5m pcp (up 23%) FY24 US$m Balance at 01-Jul-22 28.8 FY24 revenue from contracts executed 1H23 3.9 FY24 revenue from delays to FY23 revenue 5.0 FY24 revenue delayed to subsequ
Slide 11: Contracted Revenue Historical Analysis
Contracted Revenue Historical Analysis Extended timelines for large Alzheimer’s studies have pushed close-out activities into FY27 For personal use only Contracted Future Revenue At At At 30-Jun-22 30-09-22 31-Dec-22 FY231 33.9 27.9 19.9 FY24 33.0 36.0 36.8 FY25 27.7 32.4 31.0 FY26 17.9 22.5 22.1 FY
Slide 12: Clinical Trials
For personal use only Clinical Trials 12
Slide 13: Clinical Trials – Our Established Business
Clinical Trials – Our Established Business US$ millions 1H21 2H21 1H22 2H22 1H23 Revenue impacted by delays For personal use only Revenue 12.58 16.09 20.85 19.48 17.13 Delays in patient enrolment has impacted Direct Costs (4.92) (4.97) (6.36) (6.70) (7.13) revenue with $3.3m of 1H23 revenue under co
Slide 14: Clinical Trials Sales Contracts
Clinical Trials Sales Contracts 1H23 sales contracts For personal use only 90 • US$27.3 million CT sales contracts signed in 1H23 80 8.8 • 50% decrease from PCP primarily due to 70 one particularly large study signed in 1H22 19.2 • 82% of the value of 1H23 sales contracts 60 relate to Alzheimer’s US
Slide 15: Clinical Trials Business Update
Clinical Trials Business Update For personal use only Cogstate sales efforts in the Clinical Trials segment are focused on: i. an increase in Alzheimer’s R&D investment across the industry; ii. the move to more decentralised trial design with Cogstate providing key technology and scientific services
Slide 16: Healthcare
For personal use only Healthcare 16
Slide 17: Eisai Global License
Eisai: Focusing on dementia as global pioneer since Global License Aricept launch in 1997 For personal use only • 2 x 10-year licenses (Japan & Rest-Of-World) • Excludes Clinical Trials business • Total upfront payment of US$16m across 2 agreements already received • Additionally, Cogstate receives
Slide 18: Healthcare – Our Next Frontier
Healthcare – Our Next Frontier Eisai product launch US$ millions 1H21 2H21 1H22 2H22 1H23 stage begins For personal use only Revenue 1.15 2.61 2.22 2.24 2.22 Direct Costs (0.40) (0.40) (0.45) (0.76) (0.89) Revenue represents amortisation of contractual minimum payments from Contribution 0.75 2.21 1.
Slide 19: Healthcare Business Update
Healthcare Business Update For personal use only • Eisai and Cogstate have previously announced the launch of Cogstate computerised assessments in Japan (branded as NouKNOW), Hong Kong and Taiwan (branded as CogMate). Eisai global roll-out • Since 01 July 2022, Eisai has launched Cogmate in Thailand
Slide 20: Analysis of Alzheimer's Disease Market
For personal use only Analysis of Alzheimer’s Disease Market 20
Slide 21: Alzheimer's Disease R&D Drivers
Alzheimer’s Disease R&D Drivers Increasing probability of technical and commercial success for drug developers For personal use only 1. Substantial unmet medical need given the modest efficacy of symptomatic therapies and inability to change disease course 2. Amyloid hypothesis and multiple other in
Slide 22: Current Status: Potential Therapies
Current Status : Potential Therapies For personal use only External Catalysts: LEQEMBI (LECANEMAB) DONANEMAB & REMTERNETUG Important phase 3 data Positive phase 3 data released late September Donanemab: Topline data from phase 3 from key Alzheimer's showing 27% slowing of cognitive decline. Trailbla
Slide 23: Alzheimer's: Additional Thoughts
Alzheimer’s: Additional Thoughts For personal use only Different administration = additional trials At present, leading Alzheimer’s therapies require infusion, requiring substantial infrastructure. Subcutaneous injection offers practical advantages, not the least of which is the removal of the need
Slide 24: Alzheimer's: Additional Thoughts
Alzheimer’s: Additional Thoughts For personal use only Larger trials and Real World Evidence trials requires better technology As disease modifying treatments gain approval, post-marketing Real World Evidence studies will be important and more common to monitor long-term outcomes, provide insights i
Slide 25: Share Buyback
Share Buyback For personal use only On-market Share Buyback for up to A$13 million of Cogstate ordinary shares Reflects the belief in the business’ future commercial prospects, the business’ strong capital position, and supports the Board’s ambition to improve returns for shareholders. The timing an
Slide 26: FY 2023 Outlook
Clinical Trials Revenue: • 2H23 revenue expected to increase over 1H23, but FY23 revenue expected to be approximately 6-9% below FY22 For personal use only Contribution Margin: • 2H23 in the range of 52% - 55%. Full year FY23 in the range of 48% - 52%. Healthcare • Expected to be consistent with 1H2
Slide 27: Financial Charts
For personal use only Financial Charts 28
Slide 28: Financial Summary – Income Statement
Financial Summary – Income Statement 1H22 2H22 1H23 Calendar Jul-Dec 2021 Jan-Jun 2022 Jul-Dec 2022 Year 2022 For personal use only US$ Million US$ Million US$ Million US$ Million Declining revenue resulting from delays in Group Revenue 23.1 21.9 19.5 41.1 patient enrolment in key Clinical Trials wi
Slide 29: Financial Summary – Balance Sheet
Financial Summary – Balance Sheet Net cash balance of $27.7m, which is an 31 Dec 2021 30 Jun 2022 31 Dec 2022 increase of $3.1m compared to the same For personal use only time last year. US$ Million US$ Million US$ Million Net Cash calculated as gross cash less borrowings and less cash receipts rece
Slide 30: Financial Summary – Cash Flow
Financial Summary – Cash Flow 1H22 2H22 1H23 For personal use only 31 Dec 2021 30 Jun 2022 31 Dec 2022 US$ Million US$ Million US$ Million Net operating cash outflow of ($0.2m) resulting from lower cash receipts arising from EBIT 6.1 4.6 (0.2) delays in invoicing to future periods attributable Adjus
Slide 31: For personal use only
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