Nephros, Inc. · NASDAQ:NEPH
Nephros — Investor Presentation (May 2014)
28 slides from Nephros's investor presentation, May 28, 2014
Slide 1: Nephros, Inc. Management Presentation May 2014
1 Nephros, Inc. From a ncient Greek meaning “kidney” – a f ilter Management Presentation May 2014 www.nephros.com Ticker Symbol: NEPH
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement Certain statements in this management presentation constitute “forward - looking statements” . Such statements include statements regarding the efficacy and intended use of our technologies under development, the timelines for bringing such products to market and the availabi
Slide 3: Introduction
3 Introduction We are a commercial stage medical device company that develops and sells high - performance liquid purification filters in North America and the EU ▪ Our ultrafilters are currently used primarily in dialysis centers and healthcare facilities for the production of ultrapure water and b
Slide 4: Investment Highlights
4 Proprietary hollow fiber filtration technology Commercial stage with several ultrafilter types on the market Significant addressable markets Exceed independent accreditation standards, FDA cleared, and CE Mark approved Strong IP protection and know - how Experienced management team Investment High
Slide 5: Competitive Advantage
5 ▪ Our proprietary hollow fiber technology allows our ultrafilters to optimize the three elements critical to filter performance: ▪ Ultrafilters produced by Medica S.p.A under a 10 - year mutually exclusive license Filtration As low as 5 nm Filter Life Up to 12 Months Flow Rate Minimal Disruption C
Slide 6: Target Markets
6 ▪ We currently offer ultrafilters for sale to customers in four markets ▪ Surpass independent accreditation standards set by AAMI/ANSI/ISO ▪ Dialysis ultrafilters have regulatory clearances in the US, EU, and Canada Target Markets Dialysis Water and Bicarbonate Dialysis Blood Military and Outdoor
Slide 7: Dialysis Water and Bicarbonate
7 Dialysis Water and Bicarbonate
Slide 8: Dialysis Water and Bicarbonate Market
8 Dialysis Water and Bicarbonate Market ▪ Aging population, with increasing incidence/prevalence of obesity and diabetes − 26 million American adults have c hronic k idney disease − Approximately 600,000 with chronic renal failure; 4% CAGR projected ▪ Approximately 400,000 patients receiving hemodia
Slide 9: Ultrapure Liquid Critical to Dialysis
9 Ultrapure Liquid Critical to Dialysis ▪ Water and bicarbonate are essential ingredients in dialysate ▪ Water and bicarbonate purity are a requirement for Medicare reimbursement 1 − Higher standards established in 2009 by AAMI/ANSI/ISO 13959:2009 − We anticipate adherence will be required in the ne
Slide 10: In-line Ultrafilter Solution
10 In - line Ultrafilter Solution ▪ Our ultrafilters purify water and bicarbonate: − Exceed currently approved and newly proposed purity standards − May assist in reducing the costs associated with correcting complications caused by the inflammatory response to unwanted contaminants in the blood ▪ W
Slide 11: Easy to Install
11 Easy to Install ▪ 1 DSU and 1 SSU inserted into the piping between the wall and each dialysis machine DSU Wall Box Configuration S SU Wall Box Configuration
Slide 12: Ultrapure Dialysate May Lead to Reduction in EPO Usage
12 0 2500 5000 7500 10000 12500 Clinic 4 Clinic 5 Clinic 6 Weekly EPO Dosage [units] Pre Post DSU 0 2500 5000 7500 10000 12500 15000 17500 Clinic 1 Clinic 2 Clinic 3 Weekly EPO Dosage [units] Pre Post DSU Ultrapure Dialysate may lead to reduction in EPO Usage 3 Month Trial Observed decrease of EPO u
Slide 13: Dialysis Blood
me Nephros Dialysis Blood ry
Slide 14: Dialysis Blood Market
14 Dialysis Blood Market Dialysis Treatment Options ▪ Hemodialysis (HD) clears solutes via diffusion - c urrent therapy standard in US ▪ Hemofiltration ( HF) clears solutes via convection ▪ Hemodiafiltration (HDF ) combines the benefits of both HD and HF − Enhanced clearance of middle and large mole
Slide 15: HDF Solution
15 HDF Solution ▪ The only FDA - cleared on - line mid - dilution HDF system ▪ Labeled for all chronic renal failure patients ▪ Provides all the clinical/patient benefits of on - line HDF in one system ▪ Unsurpassed clinical performance in a single - filter design − Improved clearance of toxins (esp
Slide 16: Improved Clearance In Vivo
16 0 50 100 150 200 250 300 350 400 Whole Blood Clearance [ml/min] High Flux HD Mid-Dilution HDF Improved Clearance In Vivo Clearance Comparison 1 (n= 20 patients) (1) Santoro A, et al. (2005). “Mid - Dilution: The Perfect Balance Between Convection and Diffusion”, Contrib Nephrol . 149: 107 - 14
Slide 17: Military and Outdoor Recreation Water
17 Military and Outdoor Recreation Water
Slide 18: Military and Outdoor Recreation Water Market
18 Military and Outdoor Recreation Water Market ▪ The military is heavily reliant on the use of bottled water to keep its soldiers in the field operational − Bottled water is not always available, is very costly to move, resource intensive, and prone to constant supply disruptions ▪ We offer 2 i ndi
Slide 19: Commercial Water
me Nephros Commercial Water 9
Slide 20: Commercial Water Market
20 Commercial Water Market ▪ According to the United States Environmental Protection Agency (EPA), public drinking water systems consist of community and non - community systems ▪ Non - community, non - transient water systems regularly supply water to at least 25 of the same people at least six mon
Slide 21: Sources of Contamination
21 Sources of Contamination ▪ Incoming municipal water supply − Water treatment plants only need to meet EPA guidelines for potable water which allows for up to 500 CFU/ml of bacteria ▪ Age and/or complexity of plumbing − Several miles of piping with numerous areas where water can stagnate − Sinks a
Slide 22: NanoGuard-D and NanoGuard-S
22 NanoGuard - D and NanoGuard - S ▪ The Nephros NanoGuard - D and NanoGuard - S in - line ultrafilters are for the filtration of water which is to be used for drinking and washing in non - transient, non - community water systems (i.e . commercial properties) ▪ The NanoGuard - D and NanoGuard - S a
Slide 23: Future Markets
23 ▪ Laboratory Water: Experimentation ▪ Disaster Relief: Emergency Response ▪ Consumer: Home Use Potential Future Markets ▪ Hospitality: Cruise Ships, Hotels, and Spas
Slide 24: Patents and Approvals
24 Patents and Approvals We have a total of 22 patent inventions; 7 for water applications and 15 for blood applications Water Applications ▪ Patent on DSU – Issued in US, Mexico, Israel, Japan and Australia (expires in 2026), in application rest of world ▪ Additional two patents have been issued co
Slide 25: Senior Executive Team
25 Senior Executive Team John Houghton President & CEO ▪ 25+ years experience in Med Device, Pharma , and Biotech industries ▪ Launched and commercialized products globally at Aventis and Stryker Corp. ▪ Public IPO and financing experience ▪ Previously served as President and CEO of CorMedix , Inc.
Slide 26: Board Members and Consultants
26 Board Members and Consultants Lawrence Centella Director ▪ Director of Nephros since January 2001 ▪ President of Renal Patient Services LLC ▪ Executive VP and COO of Gambro Healthcare, Inc. ▪ Senior executive dialysis company experience Daron Evans Director ▪ Director of Nephros since December 20
Slide 27: Conclusion
27 Conclusion ▪ High performance liquid filters ▪ Commercial stage – selling in North America and EU ▪ Current focus on healthcare markets - technology transferable into other markets ▪ Attractive gross margins ▪ E xperienced team
Slide 28: Nephros, Inc.
28 Nephros, Inc. From a ncient Greek meaning “kidney” – a filter