Staar Surgical Company · NASDAQ:STAA
Staar Surgical — Investor Presentation (March 2006)
33 slides from Staar Surgical's investor presentation, Mar 13, 2006
Slide 1: STAAR Surgical Company
STAAR Surgical Company Nasdaq: STAA David Bailey Chief Executive Officer STAAR SURGICAL
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS All statements in this presentation that are not statements of historical fact are forward-looking statements, including any projections of earnings, revenue, cash or other financial items, any statements of the plans, strategies, and objectives of management for future op
Slide 3: STAAR Surgical Is
STAAR SURGICAL IS............ A leader in the development, manufacture and marketing of minimally invasive ophthalmic products employing proprietary technologies that improve patient outcomes.
Slide 4: Priorities 2006
Priorities 2006 Successfully launch the ICL in the US Continued growth in International Enrich the US cataract pipeline and position it for growth in US market Set the scene for significant new approvals in 2007 - TICL in US, cataract products, US and International Prudently manage the balance sheet
Slide 5: Visian ICL
Visian(tm) ICL(tm)
Slide 6: Single Piece 3-Piece Collamer IOLs
Single Piece 3-Piece COLLAMER(r) IOLs
Slide 7: Global ICL Market Opportunity
Global ICL Market Opportunity Current Global estimates for phakic implants - $200M annual market, 400,000 implants by 2010 LASIK globally - 3 Million procedures, 1.5 million patients 1 in 5 potential LASIK patients are not suitable for the procedure = 600,000 eyes annually NOT being treated In US =
Slide 8: Global ICL Market Opportunity - Continued
Global ICL Market Opportunity - Continued Estimates vary - from 4% to 10% of current LASIK cases push the limits of the procedure. Large pupils, dry eye, thin cornea, irregular cornea 75% of patient undergoing LASIK have preoperative DRY EYE (Toda Aug 2002) 59% of those who do not end up with dry ey
Slide 9: International Update
International Update Without US approval ICL/TICL now represents 10% of total revenue 30 % combined growth 2005 TICL represents 30 % total ICL sales and growing rapidly Expect continued growth driven by new approvals Korea TICL - Q2 05 Canada TICL - Q2 05 Singapore ICL and TICL - Q2 05 China ICL/TIC
Slide 10: International ICL/TICL Opportunity
International ICL/TICL Opportunity Current market penetration as % of Lasik ranges from 3.8% to 0.1% Our two strongest markets in terms of sales are Spain (1.9%) and Korea (1.5%) At a 4% penetration in our top four markets, sales would increase by $8M If all current International markets reached 3.8
Slide 11: US Refractive Market
US Refractive Market There are approximately 3M individuals available annually in the target market for the ICL Number validated by Market Scope estimates of 2.9M available patients annually for phakic IOLs At a 4% penetration to LASIK = 56,000 units, $40M. 10% would = $100M+
Slide 12: US IOL Market
US IOL Market Years Total Dollars ($M) 2006 2007 2008 2009 2010 0 200 400 600 800 1,000 1,200 Phakic IOL RLE Presbyopia Monofocal
Slide 13: Current Cataract Market Situation
Current Cataract Market Situation US - largest IOL market, estimated 2.8M procedures ($428 million) performed in 2005 US market growing to $1.034 billion by 2010 (3.2M procedures), representing a CAGR of 19% by 2010 Presbyopic IOLs (accommodating and multifocal) and RLE will represent $550M of reven
Slide 14: US Market Highlights
US Market Highlights STAAR is present in cataract - 6% market share in units Position in the dominant new material segment with Collamer(r) material Strong IP position on injector systems for small incision Entry in the new phakic sector - ICL. Wide ranging approval Line extensions to follow - TICL
Slide 15: US IOL Rebuilding Strategy
US IOL Rebuilding Strategy 2005 year decline of 14% in the US 2005 year growth of 9% in International Why ? - Compliance overhang, Cataract offering outdated, No ICL/TICL approval = lost selling time 2006 US - Compliance issues resolved, ICL approved, Collamer three-piece a competitive base from whi
Slide 16: Visian ICL - The Complement to Lasik
Visian ICL - The Complement to Lasik
Slide 17: Cataract Surgery
cata eat Surgery Anatomy | Lawsuit Il
Slide 18: Visian Advantages
Visian Advantages Additive procedure Highly biocompatible, proprietary, removable Procedure compatible with surgeon's current skill-set - they enjoy the "butterfly" surgery Proven, safe track record - 50,000+ implanted worldwide, approval to sell in over 40 Countries 10-year patient history - 99.4%
Slide 19: Visian Launch Update
Visian Launch Update 40+ surgeons proctored to date, strict surgical protocol STAARVision Website to calculate and monitor outcomes - www.STAARVision.com Five eye proctoring requirement focused on quality outcomes, 20-eye follow-up requirement - input into STAARvision Prepay and inventory purchase p
Slide 20: Early Observations
Early Observations "The procedure took me five minutes and the patient was 20/15 in the first eye done and 20/25 in the second eye done, both at the three-hour check" We've done nine eyes so far, six are over the one week post operative date. Vision is 20/20 in three eyes, 20/25 in one eye and 20/30
Slide 21: Next Steps
Next Steps 32 certified in February, 33 Surgeons to be proctored in March, 40 in April Total target for the year - 500 surgeons Additional plan of certification courses - 100 attendees in four months this year CME event at ASCRS - 6 AM Sunday over 300 enrolled Roll out of practice marketing material
Slide 22: STAAR Website
STAAR Website Available : Dr. Erik Mertens, Belgium. Live surgery at ESCRS meeting September 2005. Bilateral 13 minutes unedited Updated list of US proctored surgeons KNX radio Interview DB + Dr Paul Dougherty
Slide 23: US Toric ICL Clinical Trial
US Toric ICL Clinical Trial
Slide 24: Astigmatism Correction
Astigmatism Correction
Slide 25: Corrects Astigmatism - Clinical Trial Underway
Corrects astigmatism Clinical trial underway Myopia from -3.0D to -20.0D 1 to 4D of refractive cylinder 21 to 45 years of age All patients enrolled - submission to FDA late Q1 early Q2 Targeted Q1 2007 Launch Visian Toric - Customized Outcomes
Slide 26: Inclusion Criteria
INCLUSION CRITERIA Myopia From -3.0D to -20.0D (SE) 1D - 4D of Refractive Cylinder 21 - 45 Years of Age Stable Refraction No Previous Refractive Surgery No Visually Significant Lens Opacities TORIC ICL for Myopia & Astigmatism
Slide 27: Outcomes - Highlights
Outcomes - Highlights Population started with over -9D myopia and 2D Cylinder ALL patients reported they were happy with the surgery - 98% VERY or EXTREMELY happy Over 77% could see as well or BETTER without any correction at 1 year postop than they could with their best spectacle correction preop 4
Slide 28: Management Team
Management Team David Bailey, President, Chief Executive Officer 18 years of healthcare management; CIBA Vision, Bausch & Lomb, ChironVision, Johnson & Johnson Deborah Andrews, Vice President, Chief Executive Officer 10 years at STAAR, XX years of audit and public accounting experience; Bourns, Inc.
Slide 29: Balance Sheet Highlights
Balance Sheet Highlights 12-31-05 Q4 consolidated cash - $12.7M Q4 debt - $1.7M Burn rate for 2005 - $2.5M per quarter including $1.2M in payments on Swiss line of credit Incremental spend to launch the ICL - $2.5M in 2006 Debt financing underway to provide "cushion"
Slide 30: Detroit Free Press news article from March 7, 2006
Detroit Free Press news article from March 7, 2006
Slide 31: Patient/Doctor Testimony
Patient/ Doctor Testimony " It's amazing, I can finally see" - 43 year old worn glasses since second grade "I've worn glasses for 54 Years - I'm very excited" - 58 year old Doctor - six procedures and the results "stunning. Everyone read 20/20 or better. It was so thrilling to have patients experien
Slide 32: Investment Considerations
Investment Considerations Large and growing addressable market Leadership in phakic implants - the Visian Implantable Collamer Lens Opportunity to rebuild Share in the Cataract market Poised for Growth . Experienced Management team . Executing the Plan . Solid Balance Sheet
Slide 33: Thank You
Thank You STAAR Surgical Company