Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — Macquarie Equities 2003 Emerging Leaders Conference
21 slides from Fisher & Paykel Healthcare's conference presentation, 2003
Slide 1: Macquarie Equities 2003 Emerging Leaders Conference
Macquarie Equities 2003 Emerging Leaders Conference
Slide 2: Investment Highlights
Investment Highlights • Leading player in heated humidification devices and consumables for a variety of respiratory markets • Estimated US$1 billion+ market opportunity • High level of innovation • Global presence • Competitive NZ cost base • Strong financial performance • Experienced management te
Slide 3: Markets and Products
Markets and Products • Respiratory humidification • Obstructive sleep apnea OSA 40% Neo- • Neonatal and other natal and other 11% à Consumable products represent Respi- approx. 50% of core product sales ratory Humid- ification * 9 months to 31 Dec 2002 49%
Slide 4: Respiratory Humidification
Respiratory Humidification • Normal airway humidification is bypassed or compromised during ventilation or O2 therapy • Mucociliary transport system operates less effectively – increases risk of infection – impairs gas exchange • Need to deliver gas at physiologically normal levels – 37°C body core
Slide 5: Market Opportunity
Market Opportunity Humidification systems are utilized to create, control and deliver optimal levels of humidity • Estimated US$300+ million market worldwide – heated humidifier controllers – humidifier chambers – breathing circuits – unheated humidifiers – oxygen therapy supplies à Heated humidifie
Slide 6: Fisher & Paykel's Humidification Systems
Fisher & Paykel’s Humidification Systems Fisher & Paykel has a full range of industry-leading respiratory humidification systems Products include: MR850 Respiratory Humidification System – invasive ventilation, O2 therapy and non-invasive ventilation – patented flow measuring technology – integrated
Slide 7: Single-use Components
Single-use Components • Single-use chambers – patented auto filling MR290 – manual filling models • Single-use breathing circuits – adult and neonatal – patented spiral heater wire – less condensation – delivery of optimal humidity à On average, 35 system set-ups used per controller per year
Slide 8: Competitive Advantage
Competitive Advantage • Creating, controlling and delivering optimal humidity poses technical challenges • Integrated humidifier, chamber, circuit system provides: – optimal performance – marketing advantage • Bundled consumable sales driven by installed controllers – Estimate F&P has >50% global co
Slide 9: Respiratory Humidification FY03 Q3
Respiratory Humidification FY03 Q3 • Revenue growth (USD) +9% on pcp • Good growth North America and rest of world • Sales growth driven by chamber and circuit sales • Continued market share growth in breathing circuits
Slide 10: Obstructive Sleep Apnea
Obstructive Sleep Apnea • Temporary closure of airway during sleep • Can greatly impair quality of sleep, leading to fatigue; also associated with stroke and heart attack • Estimated US$600+ million worldwide Normal breathing market, growing 15%-20% • 12 million affected by OSA in US alone • Most co
Slide 11: Fisher & Paykel's CPAP Systems
Fisher & Paykel’s CPAP Systems Fisher & Paykel has a broad range of CPAP products, including flow generators, humidifiers and masks Products include: HC150 Humidifier • suitable for use with most OSA flow generators • patented ambient tracking system HC220/HC221 Integrated Flow-Generator Humidifier
Slide 12: Mask Systems
Mask Systems • Aclaim2 Nasal Mask – proprietary sliding attachment – bias flow diffuser à less leaks, greater comfort • Oracle™ Oral Mask – proprietary oral interface – no headgear required
Slide 13: Competitive Advantage
Competitive Advantage à Fisher & Paykel is the pioneer of heated humidification technologies in OSA • Leveraging heated humidification expertise into rapidly growing market – increased penetration of heated humidification in OSA, increased reimbursement • Benefits of integrated flow-generator humidi
Slide 14: CPAP/Obstructive Sleep Apnea FY03 Q3
CPAP/Obstructive Sleep Apnea FY03 Q3 • Revenue growth (USD) +36% on pcp • Increasing acceptance of humidification benefits • Improved Medicare reimbursement from 1 July 02 • Pricing steady with some increases • Masks increasing in importance • Specific Medicare reimbursement code for Oracle
Slide 15: Neonatal Warmers and CPAP
Neonatal Warmers and CPAP • Radiant Warmers – 400,000 pre-term live births per year in US – warmers required in delivery and NICU – precise and stable temperature control • Infant CPAP System – proprietary bubble CPAP, non- invasive, oscillating pressure – lower risk alternative to ventilation
Slide 16: Neonatal and Warming FY03 Q3
Neonatal and Warming FY03 Q3 • Revenue growth (USD) +17% on strong pcp • Tender driven, lumpy • Growing acceptance of Neopuff infant resuscitator and neonatal CPAP system
Slide 17: Research & Development
Research & Development • 120 engineers, scientists, physiologists • Significant new product pipeline for 2003 • Competitive NZ cost base • Integrated product teams • Rapid prototype development • Active clinical research program • 29 US patents, 25 pending * • NZ$3.6M funding over 4 yrs for COPD res
Slide 18: Manufacturing
Manufacturing • Vertically integrated – electronics assembly – injection moulding – motor assembly • ISO 9001; Class 100,000 controlled environment • Ample capacity to grow – 300,000 ft2 facility – 100 acres
Slide 19: Global Presence
Global Presence % of Revenue* • Direct – hospitals, alternate site, home North care dealers America – sales offices in USA/Canada, 49% UK/Ireland, France/Benelux, Germany/Austria, Australia and Other 3% NZ • Distributors Asia – 100 distributors worldwide - 90 Pacific countries 20% Europe • Original
Slide 20: Growth drivers
Growth drivers • Maintain high level of innovation – continue to improve existing product lines – develop complementary product offerings • Target new medical applications – e.g. COPD • Increase international presence
Slide 21: Fisher & Paykel Healthcare
Fisher & Paykel HEALTHCARE Fisher& Paykel
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