Cryosite Limited · ASX:CTE
Cryosite — H1 FY2005 Earnings Presentation
23 slides from Cryosite's earnings presentation, Mar 2, 2005
Slide 1: Cryosite
Slide 2: Cryosite Limited Investor Presentation 2 March 2005
CRYOSITE LIMITED INVESTOR PRESENTATION 2 MARCH 2005 GORDON MILLIKEN Managing Director
Slide 3: Welcome and presentation outline
CRYOSITE LIMITED Good afternoon and welcome to this presentation of Cr yosite’shal f-year results. My name is Gordon Milliken. I am one of the founders of Cryosite and the Managing Director. What I would like to do this afternoon is: Firstly I will take you through the history of the company and des
Slide 4: Company History
COMPANY HISTORY Registered December 1999 Raised seed capital ($3m) April 2000 Listed on the ASX May 2002 Amount Raised $3.4m Rights Issue May 2004 $1.4m Cash at 31 December 2004 $1.588m Shares on issue 45,000,000 Current Market Cap $12 million
Slide 5: Board of Directors
Board of Directors Richard Grellman, FCA - Chairman Prof. Ron Penny AO, DSc, MD, FRACP, FRCPA Theo Onisforou, L.L.B Dr Peter French, BSc, MSc, PhD, MBA Gordon Milliken, Dip. Med. Tech. Grad. Dip. Ops. Mgt –MD
Slide 6: Highlights
HIGHLIGHTS Revenue increased by 24.5% to $1,382,334 Loss decreased by 23.2% to $368,363 Positive Cash Flow from Operating Activities in December Quarter Clinical Trial Logistics capacity expanded Growing client list Record cord blood customers and annuity income
Slide 7: What does Cryosite do?
What does Cryosite do? A Biotechnology and Life Science service company that is leveraged to the growth of the research, healthcare and associated markets Cord Blood Service Clinical trials Logistics Archival Storage and Inventory & Data Mgt Distribution
Slide 8: Key Assets
KEY ASSETS TGA Licence Established brand identity across all service areas Large client list o Over 400 obstetricians o Over 300 ATCC clients o Large Pharma companies o Research Institutions IP o Cryobyte o Quality Management System o Operational know-how
Slide 9: Revenue History ($k)
REVENUE HISTORY ($k) 2889 3000 2500 2164 2031 2000 1500 1000 500 242 284 0 YEAR Jun-01 Jun-02 Jun-03 Jun-04 Jun05F
Slide 10: Quarterly Performance
QUARTERLY PERFORMANCE Quarterly Summary 800 600 400 $k 200 0 -200 -400 De Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Revenue 02 03 03 03 03 04 04 04 04 Operating CF Period
Slide 11: Cord Blood – Overview
CORD BLOOD –OVERVIEW Involves the collection, processing & storage of umbilical cord blood stem cells for autologous use: o TGA approval December 2001 o Marketing plan in operation March 2001 o High level of customer interest commenced April 2001 o B to C marketing approach needed KEY SUCCESS FA
Slide 12: Current Status
CURRENT STATUS Australi a’sonl yTher apeut i cGoods Administration (TGA) licensed private cord blood service Over 400 obstetricians have collected blood Over 200 hospitals have facilitated collections Application to TGA to extend licence conditions to allow use of stored blood by other famil
Slide 13: Why is CB a good business?
Why is CB a good business ? Dual income streams: o Up-front income $2,000 o Annuity stream $150 per year for minimum of 18- years Well defined and stable customer base: Consistent birth rate ~ 250,000 pa –of these 60,000 are private Stable level of health insurance o Private obstetrician o P
Slide 14: Contracts
Contracts Fe b- 0 M 4 ar -0 Ap 4 r- M 04 ay -0 Ju 4 n- 0 Ju 4 l- Au 04 g- Se 04 Month p- 0 O 4 ct -0 No 4 v- Feb 2004 to Jan 2005 De 0 4 CORD BLOOD CONTRACT c- 0 Ja 4 n- 05 CB CONTRACTS TREND
Slide 15: USA Market
USA MARKET Estimated to be ~20 private cord blood storage companies Viacord listed Jan 2005 –market cap >US$70m Cryo-Cell o >75,000 cords stored o Revenue 2004 –US$12.2 (+63%)
Slide 16: Clinical Trials Logistics
Clinical Trials Logistics SERVICES: Controlled-temperature storage of investigational drugs, associated materials and documentation •Controlled-ambient (<25°C & <60% humidity) •Refrigerated (2°C to 8°C) Pick, pack and dispatch •Intrastate, interstate, international •DG’ sandnon-DGs Extension d
Slide 17: Why is CT a good business?
Why is CT A GOOD BUSINESS ? Over 600 concurrent trials in Australia ~42% of drug development expenditures outsourced compared to ~4% early 1990s World Pharmaceutical outsourcing market ~US$12-15 billion, ~US$26-28 by 2008 Drug development times shortened by~33% through effective outsourcing
Slide 18: Clinical Trial Marketing
CLINICAL TRIAL MARKETING Why Cryosite? o Provide very customised service o Located near many clients in Biotech hub o Utilise common infrastructure and Quality Management System o Strong industry links o Many big names – Pfizer & Bristol Myers Squibb. Others include, Boehringer Ingleheim, Novotech
Slide 19: CT Revenue Trend
CT REVENUE TREND Feb 2004 to Jan 2005 Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- 04 04 04 04 04 04 04 04 04 04 04 05
Slide 20: Distribution - ATCC
DISTRIBUTION - ATCC ATCC - established 1925 New Agreement valid until 2009 Worlds largest collection of biological material Over 300 existing ATCC clients All indent –no stock costs Consistent profits from order consolidation and shipping High margins Cross-marketing with archival st
Slide 21: Archival Storage
ARCHIVAL STORAGE Secure, off-site ultra-low & cryogenic storage of biological materials Internet based inventory & information system Samples stored include: serum, blood, tissue biopsies, DNA, cell-lines, Clients include, Proteome Systems, St. Vincent's, Pi2, St. George Hospital, POW Hospit
Slide 22: Cryobyte
CRYOBYTE Web-based Sample Inventory & Management System Allows users to define storage profiles Secure 128-bit encryption Patent application in process Key component of integrated physical storage & data management Key component of all business units Interest from cryogenic equipment m
Slide 23: Where to now?
WHERE TO NOW? Develop more capacity to service the Clinical Trials Logistics growth Obtain extension of cord blood licence Expand the Distribution business –diagnostic reagents & commercial drugs J V’sandal li ancest hatuseourI Pascol lat erali nAust ral ia and Overseas More benefits throu