Arcticzymes Technologies Asa · OSL:AZT
Arcticzymes Technologies Asa — Q4 2017 Earnings Presentation
24 slides from Arcticzymes Technologies Asa's earnings presentation, Feb 1, 2018
Slide 1: Q4 2017 Presentation
Q4 2017 Presentation 01.02.2018, Oslo
Slide 2: Agenda
Agenda • Highlights • BetaGlucans • Animal- and Consumer health • Cancer • Advanced wound care • Enzymes • Molecular and new markets • Q4 Financials • Outlook for 2018 2
Slide 3: Biotec in brief
Biotec in brief A corporation with two independent versatile technology platforms who both benefit from underlying market growth Beta-glucans Enzymes • A common unique technology platform with • Fast growing business in developing and selling immune modulating products for improved unique enzymes fo
Slide 4: Highlights Q4 2017
Highlights Q4 2017 • Q4 sales of NOK 17.7 mill (NOK 18.2 mill) • EBITDA of NOK -7.2 mill (NOK -8.1 mill) • Woulgan reimbursed in the UK from December 1st • ArcticZymes launched two versions of the SAN product 4
Slide 5: Beta-glucans
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Slide 6: Activities for M-Glucan® and M-Gard®
Activities for M-Glucan® and M-Gard® Over 20 years experience with immune modulating beta-glucans Animal health • Sales experiences annual and seasonal fluctuations driven by demand for health feed within the aquaculture sector. • Activities on-going to broaden co-operation with business partners. C
Slide 7: SBG® in current neuroblastoma vaccine trial
SBG® in current neuroblastoma vaccine trial • Small but high impact indication in children • Will serve as a proof of concept for use of SBG® in immunotherapy of cancer • The treatment regime has a possibility of becoming approved without a regular phase III trial Patients under treatment • Biotec i
Slide 8: Status Woulgan®
Status Woulgan® • Clinical effects in user-friendly format- clear differentiation for Woulgan • Progress with UK and Nordic market access (reimbursement, tenders and wholesaler listings). • Woulgan is mainly used in out-patient settings – salesforce coverage is key: • Large number of call-points for
Slide 9: Activities in all markets
Activities in all markets UK Nordics Germany Clinical Completed recruitment of 300 patient study. Multiple wound types, real world study. Completed patient recruitment early in Q4. Majority of patient data collected from sites. Results written up in Q2 for publication after Analysis and manuscript f
Slide 10: Research and Development: Woulgan Dry Layer
Research and Development: Woulgan Dry Layer • Woulgan® dry layer pilot plant is testing different formulations • The gel-forming dry layer is well suited to more exuding and larger wounds • Priority to develop proprietary production methods that can be patent protected
Slide 11: ArcticZymes: Molecular and new markets
ArcticZymes Molecular and new markets
Slide 12: Commercial Updates
Commercial Updates • ArcticZymes main customer completes its consolidation efforts in transiting manufacturing to a centralized EU site • Product sales resumed with the first shipments going out during the quarter • Business is expected to return to the normal cadence during 2018 12
Slide 13: Biomanufacturing: Gene Therapy Business
Biomanufacturing: Gene Therapy Business AZ’s SAN Virus Gene Repair • Tripled sales and broadened customer • SAN is utilised in the manufacturing of • The virus has the tool kit and ability to base during 2017 viruses for use in gene therapy repair the patients DNA • Multipronged value proposition •
Slide 14: New Product Launches
New Product Launches • ArcticZymes expanded its IsoPol™ product line by launching 2 new polymerases: IsoPol™ SD⁺ and IsoPol™ BST⁺ • Each offers enhanced features purposely engineered into the enzymes based upon direct feedback from AZ’s commercial customers and leading industrial players • ArcticZym
Slide 15: Enhancing Security of Supply
Enhancing Security of Supply Security of Supply Higher Quality Standard Critical Supplier Transitioned in Q4 Success in B2B is more than just the product: Future proofing the business: ✓ Robust and reproducible manufacturing ✓ Achieved ISO13485 accreditation during Q4 ✓ Delivery on demand ✓ ISO13485
Slide 16: Q4 Financials
Q4 Financials vitae. BIOTEC ret” PHARMACON
Slide 17: Speed of cash outflow reduced
Speed of cash outflow reduced Fourth quarter changes in cash of -2.5 MNOK Amounts in NOK 1.000' • Best quarter last 24 months. Reduced net cash outflow • 14.4 MNOK in short-term receivables • 16.9 MNOK in short-term payables Cash balance of 30.6 MNOK end of 2017 17
Slide 18: Q4 Cash flow detailed
Q4 Cash flow detailed • Q4 2017 Cash flow from operations ~ 1.5 MNOK • Explained by change in working capital of • Receivables 4.8 MNOK • Payables 1.4 MNOK • Inventory -0.9 • Q4 2017 Cash flow from investments ~ 1.5 MNOK • Investments 1.1 in fixed assets 18
Slide 19: An average quarter for sales
An average quarter for sales • ArcticZymes NOK 8.8M • Animal & Consumer Health NOK 8.3M • Woulgan NOK 0.6M • Group NOK 17.7M 19
Slide 20: Loss in Q4 characterized by extraordinary
Loss in Q4 characterized by extraordinary EBITDA Amounts in NOK 1.000' Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 ,0 -1000,0 -2000,0 -3000,0 -4000,0 -5000,0 -6000,0 -7000,0 -8000,0 -9000,0 20
Slide 21: Beta-Glucan performance
Beta-Glucan performance Beta-Glucans Q4 YTD (Amounts in NOK 1.000) 2017 2016 2017 2016 • Sales driven primarily by Animal Health in Sales revenues 8 911 11 430 35 051 43 190 • Q4 2017 expenses reduced compared to Operating expenses -8 468 -9 760 -34 812 -36 821 EBITDA -4 930 -4 785 -18 990 -17 094 Q
Slide 22: ArcticZymes performance
ArcticZymes performance Enzymes Q4 YTD (Amounts in NOK 1.000) 2017 2016 2017 2016 • Q4 2017 are NOK 2.0 million improved Sales revenues 8 757 6 785 31 628 28 714 compared to Q4 2014 Operating expenses -8 432 -8 818 -29 856 -28 297 EBITDA 798 -1 384 5 209 3 847 • Expenses are reduced from Q4 2016 to
Slide 23: Outlook 2018
Outlook 2018 cay. ¢ o@ete. BIOTEC ret” PHARMACON
Slide 24: Outlook 2018
Outlook 2018 • Overall sales growth versus 2017 • Significant reduction in cash consumption due to increased sales and reduced expenses • Review of Woulgan go-to-market model to ensure further growth • AZ expects to grow the business organically while also looking for inorganic growth opportunities
ArcticZymes Technologies — Q4 2017 Earnings Presentation on 6ix