Inogen, Inc · NASDAQ:INGN
Inogen — Investor Presentation (September 2019)
27 slides from Inogen's investor presentation, Sep 9, 2019
Slide 1: Company Overview September 2019
Company Overview September 2019 Exhibit 99.1
Slide 2: Notice regarding forward-looking statements
Notice regarding forward-looking statements These slides and the accompanying oral presentation (the “Presentation”) include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on current expectations, estimates and projections based
Slide 3: Inogen POC offers freedom and mobility
Inogen POC offers freedom and mobility Stationary oxygen concentrator + Regular oxygen tank delivery Delivery Model Inogen Model 2.8 pounds (single battery) Run time up to 5 hours with a double battery A/C adaptable Conforms to all applicable FAA requirements Suitable for overnight use Portable oxyg
Slide 4: Traditional O2 therapy challenged by market dynamics
Traditional O2 therapy challenged by market dynamics Traditional O2 P Inogen Cost effective Maximizes mobility P P O O O Relevance today >50% reduction to Medicare reimbursement rates Oxygen delivery has high infrastructure and variable costs Ambulatory O2 à 2x survival; 60% fewer hospital days1 Uti
Slide 5: Product performance drives leadership position
Product performance drives leadership position Inogen One G5® Inogen One G4® Inogen One G3® Launch Date April 2019 May 2016 September 2012 Minimum Advertised Retail Price $2,395 $2,295 $2,295 O2 capacity 1,260 ml/min 630 ml/min 1,050 ml/min Overnight ü ü ü Single Solution ü ü ü User Replaceable Batt
Slide 6: Building the Inogen brand
Building the Inogen brand Targeted advertising Consumer preference Domestic direct-to-consumer sales ($M) Domestic business-to-business sales ($M) +40.9% YOY +39.8% YOY Founded in patient preference +64.1% YOY +47.3% YOY $61.5 $86.6 $142.1 2016 2017 2018 $56.6 $83.4 $116.6 2016 2017 2018
Slide 7: U.S. market dynamics continue to favor POC adoption by traditional HME providers
U.S. market dynamics continue to favor POC adoption by traditional HME providers Estimated Penetration of POCs1 Average total monthly reimbursement Note 1: Based on 2018 U.S. Medicare claims data and our estimates of the ratio of the Medicare market to the total market. Value excludes Medicare Advan
Slide 8: Globally diversified revenue
Globally diversified revenue Sales in 47 countries Growing worldwide revenue 2018 Revenue:$358.1M 1H 2019 Revenue:$191.3M 2018 Revenue Breakdown Domestic B2B 32.5% DTC rentals 9.2% DTC sales 39.7% Int’l B2B 21.6% Six Months Ended June 30, 2019 Revenue Breakdown DTC rentals 5.5% Domestic B2B 29.1% DT
Slide 9: Historical Revenue
Historical Revenue Revenue ($M) 10 Year CAGR of 43% based on 2019 guidance1 ¹2019 estimated revenue of $372.5M based on the midpoint of guidance provided in the Company’s press release dated August 7, 2019 of $370M - $375M. This outlook represents the Company’s guidance only as of that date. 1 2019
Slide 10: Historical Operating Income
Historical Operating Income % Operating Margin 2015 2016 2017 2018 2019E¹ 9.5% 11.3% 11.1% 10.6% 7.2% +20.7% YOY -28.7% YOY +51.9% YOY ¹2019 operating income of $27M based on the midpoint of guidance provided in the Company’s press release dated August 7, 2019 of $26M - $28M. 2019 operating income g
Slide 11: Balance sheet overview
Balance sheet overview [Insert object title] Cash, cash equivalents & marketable securities on hand $256.1M Debt $0.0M 2019 New Aera transaction use of cash1 $70.4M No additional capital requirements to meet current operating plan2 Net positive cash flow, excluding New Aera transaction2 Maximizes fl
Slide 12: Multiple avenues to drive future revenue growth
Multiple avenues to drive future revenue growth Direct-to-consumer expansion Increase domestic & international B2B adoption 446 inside sales reps*; however, there was a decline in sales reps as of 6/30/2019. 20 outside physician sales & support team members* Focusing on sales rep productivity & crea
Slide 13: New Aera - SideKick Tidal Assist Ventilator (TAV)
New Aera - SideKick® Tidal Assist ® Ventilator (TAV®) Non-invasive ventilator (NIV) for select patients with chronic lung diseases (Rx required) Compatible with certain oxygen concentrators, oxygen cylinders, wall gas, and certain medical air sources Delivers higher flow and pressure versus traditio
Slide 14: Strategic value of New Aera
Strategic value of New Aera Complementary Sales Opportunity Enhances Financial Profile Strengthens Technology Leadership Expansion into NIV Market
Slide 15: Reimbursement environment creates opportunity for cost-effective & patient-preferred products
Reimbursement environment creates opportunity for cost-effective & patient-preferred products 1 Calculations exclude Puerto Rico where monthly reimbursement rates are $1,827.24 for E0466 and $2,017.58 for E0467 We believe reimbursement pressure will create an opportunity to disrupt the NIV market wi
Slide 16: Benefits of TAV vs standard oxygen
Benefits of TAV® vs standard oxygen The trial was a randomized, open-label crossover study comparing TAV vs. standard oxygen for its impact on exercise endurance, oxygen saturation, and Borg dyspnea 18 subjects included moderate to very severe COPD or interstitial lung disease patients studied at a
Slide 17: Company highlights
Company highlights Market leader in large, global, underpenetrated market DTC model enables innovation and customer access Differentiated product portfolio with commitment to R&D Seasoned management team with proven track record Attractive financial profile
Slide 18: Proprietary and
Proprietary and Confidential
Slide 19: Supplemental Information September 2019
Supplemental Information September 2019
Slide 20: Key regulatory approvals and billing
510(k) clearance by the FDA FDA registered manufacturing facilities Conforms to all applicable FAA requirements for use on commercial aircraft Quality Management System certified to comply with ISO 13485 for the design, development, manufacture, distribution and service of oxygen concentrators and a
Slide 21: Estimated U.S. Medicare penetration of portable oxygen concentrators
Estimated U.S. Medicare penetration of portable oxygen concentrators We believe POCs remain under penetrated Based on 2018 U.S. Medicare claims data, ambulatory patients account for 76% of total LTOT patients. Inogen estimates a full POC penetration rate to be 90% of the existing ambulatory patient
Slide 22: U.S. COPD macro trends
U.S. COPD macro trends Senior population + smoking + air pollution The 65+ age group is expected to increase 3% annually through 20251 The 65+ age group is expected to account for 19% of the total population by 2025, up from 15% in 20151 The leading cause of COPD is smoking ³ People entering the 65+
Slide 23: Design expertise & intellectual property
Design expertise & intellectual property 33 patents issued System design and assembly Control systems Advanced compressor technologies Sieve bed designs and life prediction 11 pending patent applications POC design improvements Improved user replaceable sieve bed designs Design features for improved
Slide 24: Average non-delivery ambulatory monthly rates
Average non-delivery ambulatory monthly rates 233 136 134 We believe lower reimbursement rates will drive conversion to non-delivery solutions, although there are challenges to HME provider adoption short-term POC reimbursement rates are still a 20% premium compared to tanks in 36-month rental perio
Slide 25: Continuous innovation to stay at the forefront of customer preference
Continuous innovation to stay at the forefront of customer preference 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Inogen one Oct 2004 June 2006 April 2009 Release Update Update Inogen one G2 March 2010 Sept 2013 Release Update Inogen One G3 Sept 2012 Nov 2013
Slide 26: A proven team built for success
A proven team built for success Ali Bauerlein Chief Financial Officer, Executive Vice President, Finance, Corporate Secretary & Corporate Treasurer Scott Wilkinson President, Chief Executive Officer, BOD Member Co-founder of Inogen with over 15 years experience in treasury, finance, accounting, risk
Slide 27: 2019 Guidance
2019 Guidance ¹2019 estimated revenue of $372.5M based on the midpoint of guidance provided in the Company’s press release dated August 7, 2019 of $370M - $375M. ²2019 estimated net income of $24M based on the midpoint of guidance provided in the Company’s press release dated August 7, 2019 of $23M