Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (November 2015)
39 slides from Elron Ventures's investor presentation, November 2015
Slide 1: Innovation
INNOVATION November 2015
Slide 2: Disclaimer
This presentation is for information purposes only. By this presentation, Elron does not intend to solicit offers to purchase its securities and the presentation does not constitute an invitation to receive such offers. Elron may make improvements and/or changes in the features or content presented
Slide 3: Recent exits and new investments: Coramaze funding round
German company in advanced pre-clinical stage Sold to for an immediate cash Sold to for up to $53 million which Developing a device for functional mitral valve payment of $35 million and additional includes immediate and contingent regurgitation – backflow in the left side of the contingent cash pay
Slide 4: Additional RDSeed investments and holdings updates
An additional RDSeed investment, its first The company recently raised several million in dollars at a pre-money value of The company received Addresses one of the most common and from a regional Elron’s holding: 25% sophisticated cyber attacks against Medicare carrier in the U.S. The company’s solu
Slide 5: Elron
DISCOVER. ELRON
Slide 6: Years of experience identifying opportunities and building technology leaders
+ WE HAVE YEARS EXPERIENCE IDENTIFYING OPPORTUNITIES, BUILDING TECHNOLOGY LEADERS, AND EXITING HOLDINGS + WE INVEST PRIMARILY IN EARLY STAGE COMPANIES + WE RELY ON A PROVEN STRATEGY OF HANDS-ON INVOLVEMENT IN THE DAY-TO-DAY OPERATIONS OF OUR GROUP COMPANIES + OUR COMPANIES BENEFIT FROM OUR SKILL AT
Slide 7: Performance in 2015
Exit Proceeds, after tax ($m)* Gain ($m) 85.5 66.3 PERFORMANCE IN 2015: 269 17.9 114 -8.4 4.4 59 20 4 2010 2011 2012 2013 2014 $6M 2010 2011 2012 2013 2014 $33M Investments ($m)* Liquid Resources at Year End ($m) 37 36 93.7 $162M 18 16 40.7 13 31 21.1 $23M 15.7 2010 2011 2012 2013 2014 2010 2011 201
Slide 8: Holdings in companies
Holdings in companies 1 Book value at Amount invested Sep. 30, 2015 ($m) ($m) Associates and consolidated companies: Pocared (55%) 14.5 49.0 600 patients enrolled for interim analysis of BrainsGate (30%) 0.8 24.5 FDA trial (~580 patients recruited to date] PLYmedia (25%) - 2.5 Others 4.1 22.4 Compan
Slide 9: BrainsGate
DISCOVER. BRAINSGATE
Slide 10: BrainsGate: our investment $25M
2000 OUR INVESTMENT: 2005 $81M $25M Johnson & Johnson, Boston Scientific, Medtronic, Pitango, Cipio Partners To increase the potential number of stroke victims who receive OUR treatment from ~7% to ~80% HOLDING: Electrode used to electrically stimulate a nerve center behind the nasal cavity (the SPG
Slide 11: Interruption of blood flow to the brain
INTERRUPTION OF BLOOD FLOW TO THE BRAIN When blood flow to an area of the brain is cut off When brain cells die, functions controlled by that part of the brain (e.g. memory, muscle control) Blood flow to the brain is blocked by a Blood leaks into the brain from a blood vessel of strokes are ischemic
Slide 12: Stroke survivors permanently disabled; lifetime cost per patient
Average Lifetime Cost Per Stroke Patient Of STROKE $300 K $450 K SURVIVORS ARE LEFT $130 K $60 K PERMANENTLY $10 K $25 K $25 K DISABLED mRS 0 1 2 3 4 5 6 Sources: Samsa et al, Performing Cost-Effectiveness Analysis by Integrating Randomized Trial Data with a Comprehensive Decision Model: Application
Slide 13: Ischemic penumbra: viable tissue at risk
Cells in the affected area die almost immediately, and cannot be salvaged However, surrounding the blockage are regions of viable tissue at risk – the ischemic penumbra – Source: American Heart Association: Temporal Trends in Patient Characteristics and Treatment With Intravenous Thrombolysis Among
Slide 14: Clot-busting drug limitations
CLOT-BUSTING DRUG • The risk of hemorrhage just 3 hours after stroke onset increases 10X • Certain patients are eligible for treatment up to 4.5 CLOT RETRIEVING DEVICES hours after symptoms first start • tPA is not approved for use after 4.5 hours from stroke onset • MOST PATIENTS DO NOT GET TO THE
Slide 15: Clot retrieving devices
CLOT-BUSTING DRUG • In the past this treatment was used in an 8-hour treatment window, but was not widely adopted due to lack of proven clinical benefit CLOT RETRIEVING DEVICES • 2015: Several large multicenter trials were published showing that treatment with endovascular treatment in a limited tim
Slide 16: Electrical stimulation of the SPG
CLOT-BUSTING DRUG • Electrical stimulation of the SPG (a nerve center behind the nasal cavity) using a miniature electrode CLOT RETRIEVING DEVICES • The electrode’s activation induces dilation of cerebral blood vessels, and augments cerebral blood flow; without affecting central blood pressure • THE
Slide 17: Implant, transmitter and GuideView treatment system
5 daily stimulation sessions, of 4 hours each The neurologist performs the implantation (which is brief and simple), with the aid of a navigation system GuideView SPG (sphenopalatine ganglion) = supplies parasympathetic innervation to the anterior cerebral circulation and some of the posterior c
Slide 18: Pivotal trial for U.S. marketing approval of the ISS
BRAINSGATE IS CONDUCTING AN FOR U.S. MARKETING APPROVAL OF THE ISS: Primary outcome Distribution of patients across mRS, according to sliding dichotomous analysis,* at 90 days Study design Multicenter, randomized, double blind, sham control IMPACT-1: pilot study on 98 patients, with promising Estima
Slide 19: Pocared
DISCOVER. POCARED
Slide 20: Pocared: our investment $49M
OUR 2004 INVESTMENT: 2007 $49M $90M SCP Vitalife To promote antibiotic stewardship and significantly reduce lab costs OUR by providing a method for rapid infectious diseases diagnostics HOLDING: Rapid and automated microbiology lab system for infectious diseases diagnosis 55% 20
Slide 21: Traditional microbiology culturing limitations
Since the 19th century, microbiology testing has been done by culturing In the 21st century, developed a technology for automatically bacteria in petri dishes identifying bacteria in body fluids, by identifying their optical “fingerprint” Expensive: Requires reagents and skilled lab technicians Manu
Slide 22: Antibiotic resistance
The use of antibiotics is the single most important factor leading to antibiotic resistance around the world Antibiotics are among the most commonly prescribed drugs Up to 50% of all the antibiotics prescribed are not needed or are not optimally effective as prescribed ILLNESSES EACH DEATHS EACH YEA
Slide 23: Lab workforce, throughput and efficiency pressures
FEWER SKILLED WORKERS HIGHER THROUGHPUT GREATER EFFICIENCY The average age of the lab workforce in the Testing volumes are increasing per Economic pressures drive the need to U.S. is about , and increasing year, due to factors such as: contain costs while maintaining high tec
Slide 24: Optical signature identification of micro-organisms
+ Micro-organisms are identified based on their unique optical signatures in response to different UV wavelengths + Culture-free, lab assistant operated + Gold standard accuracy + A full batch of 42 samples takes 2 hours to diagnose Filtration using “wet foam” technology to The Analyzer employs A re
Slide 25: UTI diagnosis: U.S. clinical trial of the P-1000
DIAGNOSIS OF URINARY TRACT INFECTION (UTI) THE P-1000 IS IN THE EU; POCARED IS CONDUCTING AN FOR U.S. MARKETING CLEARANCE OF THE P-1000: Primary outcome Agreement of the P-1000 quantification and identification method compared with the standard method (agreement = >90% sensitivity & specificity for
Slide 26: Additional applications in development
(streptococci) (MRSA/MSSA) 41m tests in the U.S. annually 8m tests in the U.S. annually clinical validation, ready for clinical feasibility regulatory studies (sepsis) (rapid AST) 50m tests in the U.S. annually NO rapid solution currently available clinical proof of concept clinical feasibility Sour
Slide 27: Notal Vision
DISCOVER. NOTAL VISION
Slide 28: Notal Vision: our investment $9M
OUR 2000 INVESTMENT: 2002 $9M $40M Ganot, Evergreen To save the eyesight of Age-related Macular Degeneration (AMD) OUR patients HOLDING: Home-monitoring system that sends out an alert when a change for the worse is detected in the condition of dry AMD patients 21% 28
Slide 29: Age-related macular degeneration
AGE-RELATED MACULAR DEGENERATION AMD destroys sharp, central vision, necessary for common tasks such as facial recognition, driving, reading, & watching television AMD has 2 stages: “dry” (non-neovascular) and “wet” (neovascular) ~90% of blindness due to AMD is associated with the wet stage AMD PROG
Slide 30: Home monitoring to predict wet AMD
It is not possible to predict who will develop wet AMD, and if so, when Dry AMD patients are monitored once or twice a year, in routine check-ups at the eye doctor Wet AMD can be treated, but due to late diagnosis, 64% of eyes end with dysfunctional vision even after treatment The device is easy t
Slide 31: AREDS2 trial results
AREDS2: Notal Vision conducted a trial in collaboration with the NIH on 1,520 patients in 44 eye clinics: 94% of patients who used the device as directed preserved functional vision at diagnosis vs only 62% of patients using other detection methods 31
Slide 32: Device rental and monitoring service; reimbursement
Device rental plus monitoring service for a monthly fee, available to patients with a prescription NOTAL VISION RECEIVED REIMBURSEMENT COVERAGE APPROVAL FROM A REGIONAL PATIENT PAY REIMBURSEMENT MEDICARE CARRIER; PAYMENT Installation fee Monthly fee DETERMINATION IS EXPECTED TO BE MADE IN THE NEAR M
Slide 33: Coramaze
DISCOVER. CORAMAZE
Slide 34: Coramaze: our investment €1.75M
OUR 2013 INVESTMENT: 2015 €1.75M €4.5M HTGF, SeedCapital To offer functional mitral valve regurgitation (fMR) patients a OUR minimally invasive treatment in lieu of open heart surgery HOLDING: Transcatheter mitral valve repair system with atraumatic anchoring 28%* * 28% after the funding round will
Slide 35: Functional mitral valve regurgitation
FUNCTIONAL MITRAL VALVE REGURGITATION is very effective but severely limited in its fMR affects up to applicability due to high risk & cost suffer from 1 or more of the following fMR patients suffer from severe symptoms and difficulties: limited efficacy complex delivery & deployment invasive anchor
Slide 36: Percutaneous transfemoral spacer device
CORAMAZE IS DEVELOPING A DEVICE DESIGNED TO SELF- EXPAND ON SITE, AND BE POSITIONED BETWEEN THE VALVE’S LEAFLETS PERCUTANEOUS SPACER THAT ATRAUMATIC TRANSFEMORAL ENHANCES LEAFLET ANCHORING IN THE IMPLANTATION COAPTATION LEFT ATRIUM A SAFE, SIMPLE, AND PRESERVES NATURAL REPOSITIONABLE, QUICK IM
Slide 37: Mitral valve acquisitions by medtech companies
ACQUIRER TARGET DEAL SIZE DEVICE STAGE Edwards Lifesciences CardiAQ Valve up to $400m ($350m mitral valve replacement clinical development Technologies upfront + milestone) Abbott Tendyne up to $250m ($225m mitral valve replacement clinical development upfront + milestone) Abbott Cephea Valve undisc
Slide 38: Proven expertise; anticipated developments in mature companies
WE HAVE PROVEN EXPERTISE IN OPPORTUNITIES, TECHNOLOGY LEADERS, AND HOLDINGS WE ANTICIPATE SIGNIFICANT DEVELOPENTS IN OUR MATURE COMPANIES OUR CURRENT MARKET VALUE IS , AND OUR LIQUID RESOURCES BALANCE IS 38
Slide 39: Opportunity. Thank you.
ELRON. OPPORTUNITY Thank you.
Elron Ventures — Investor Presentation (November 2015) on 6ix