Neuropace, Inc. · NASDAQ:NPCE
Neuropace — Investor Presentation (January 2024)
28 slides from Neuropace's investor presentation, Jan 8, 2024
Slide 1: Investor Presentation January 2024
Exhibit 99.2 Investor Presentation January 2024 1
Slide 2: Disclaimer
Disclaimer In addition to background and historical information, this presentation contains “forward-looking statements” based on NeuroPace’s current expectations, estimates, forecasts and beliefs, including financial results for the fourth quarter and full year ended December 31, 2023, information
Slide 3: NeuroPace Mission
NEUROPACE MISSION Transform the lives of people suffering from epilepsy by reducing or eliminating the occurrence of debilitating seizures. 3
Slide 4: NeuroPace Investment Highlights
NeuroPace Investment Highlights >$55B annual core U.S. addressable market; $2B original market within Comprehensive Epilepsy Centers with additional upside from expanding into Large, underpenetrated market Community Closed loop, brain-responsive neuromodulation system Unique technology Compelling cl
Slide 5: Management Team
Management Team Joel Becker Rebecca Kuhn Martha Morrell, MD Chief Executive Officer Chief Financial Officer Chief Medical Officer Irina Ridley Kelley Nicholas Chief Legal Officer Vice President, Sales Previous Experience 5
Slide 6: Drug-Resistant Epilepsy is a Devastating, Highly Undertreated Disease with Significant Unmet Need
Drug-Resistant Epilepsy (DRE) is a Devastating, Highly Undertreated Disease with Significant Unmet Need Epilepsy is a disorder in which abnormal electrical activity in the brain causes seizures th 1 4 most common neurological disorder in the U.S. 1 ~$28B direct medical costs in the U.S. 2 2-3X highe
Slide 7: U.S. Prevalence: 1/3 of Epilepsy Patients are Drug Refractory
U.S. Prevalence: 1/3 of Epilepsy Patients are Drug Refractory Drug-resistant epilepsy (DRE) defined as a patient failing to achieve sustained seizure freedom after trying 3 two antiseizure medications DIAGNOSIS & FIRST LINE TREATMENT Patients diagnosed ~1 in 3 have drug-resistant Try multiple anti-e
Slide 8: RNS System - Novel Therapy to Address Unmet Need
RNS System - Novel Therapy to Address Unmet Need Brain-Responsive Neuromodulation System Provides Unique Window to the Brain Recognizes & Responds Monitors Records To patient-specific seizures patterns Ongoing iEEG data for physicians to review Brain activity Continuously Epilepsy Treatment that is
Slide 9: RNS System Data Allows Physicians to Actively Manage and Customize Ongoing Patient Care
RNS System Data Allows Physicians to Actively Manage and Customize Ongoing Patient Care Identify Seizure Triggers Monitor Patient Progress Electrographic See Effects of Therapy Changes seizures Therapy change Reveal Seizure Cycles Inform Future Surgeries 9
Slide 10: Impressive Seizure Reductions Improve Over Time
Impressive Seizure Reductions Improve Over Time Median % Reduction in Seizures Original FDA Study Real World & FDA 82% 82% 1,2 Results: Post Approval Study 75% 75% 75% 73% Results: 72% • Statistically greater 67% 67% 67% seizure reduction than 63% • 67% median seizure 62% 3,4 58% sham therapy at red
Slide 11: Alternative Treatment Options Have Significant Risks and Side Effects
Alternative Treatment Options Have Significant Risks and Side Effects Epilepsy Surgery RNS Therapy Neuromodulation Competitors Irreversible destructive procedure Fixed anatomical target Therapy at seizure source only when needed Carries neurocognitive risks: impaired Not responsive to brain activity
Slide 12: Current Patient Population Focus
Current Patient Population Focus 6.5K 3 DRE patients get treatment beyond drugs annually 50K DRE 1.2M 2 people living with patients admitted to Comprehensive Epilepsy Centers annually 1 DRE in the US Significant Opportunity Exists to Close the Treatment Gap! 1 2 3 Chen, Z., et al., JAMA Neurology, 2
Slide 13: Closing the Treatment Gap: CEC Growth Opportunity
Closing the Treatment Gap CEC Growth Opportunity MACRO TRENDS • Number of CECs increased from 151 in 2012 3 to 256 in 2019 50K DRE patients admitted • 150% increase in number of epileptologists 2 3 to CECs annually per capita from 2012 to 2019 1.2M • Epilepsy monitoring unit (EMU) admissions 3 >$2B
Slide 14: Annual Core U.S. Market Opportunity at CECs
Annual Core U.S. Market Opportunity at CECs >$2 Billion 1 ~50K New DRE Patients ~50K New DRE Patients Admitted to CECs Annually Admitted to CECs Annually 50 50 45 45 40 40 30K $1.4B Annual U.S. Core Market ~48% ~60% Focal 2 Excluding replacement implants 35 35 30 30 25 25 ~12% 20 20 15 15 $900M Annu
Slide 15: Closing the Epilepsy Treatment Gap Through Expanded Therapy Access
Closing the Epilepsy Treatment Gap Through Expanded Therapy Access Increased Expanded Expanded Therapy Patient Therapy Availability Eligibility Utilization Educate and Support Broaden the Indications Increase Availability in Clinicians and Patients to of Patients Eligible for Health Care Systems Nea
Slide 16: Expanded Therapy Utilization: Strategies for Focal, Refractory Epilepsy
Expanded Therapy Utilization: Strategies for Focal, Refractory Epilepsy RNS® System Enables Diverse Treatment Approaches TARGETED NETWORK THERAPY STIMULATION STIMULATION COMBINATIONS For discrete onsets For regional onsets To augment surgery Bilateral & suspected bilateral MTL Regional neocortical s
Slide 17: Market Expansion: Project CARE Pilot
Market Expansion: Project CARE Pilot – Bringing the RNS System into the Community Community Expansion Pilot – Making the RNS System Accessible to Patients and Clinicians outside of Level 4 CECs Facilitating Referrals of Expanding RNS System Appropriate Patients to Level Access to Patients • Expandin
Slide 18: Indication Expansion: Generalized Epilepsy
Indication Expansion: Generalized Epilepsy Generalized Epilepsy Clinical Trials • NAUTILUS Patient Eligibility Indication o Breakthrough Device Designation Expansion – RNS System status indication for Generalized o Enrollment completed – Q4 2023 Epilepsy (quarter early) • 40% of DRE market o Implant
Slide 19: Closing the Treatment Gap: Enhanced RNS Therapy Access
Closing the Treatment Gap: Enhanced RNS Therapy Access Patient Indication • Enrollment completed – Q4 2023 Expansion: RNS • Planned Implant follow up completion – H1 2025 Access for • 40% of DRE Patients Generalized Epilepsy • Expansion to additional +1,800 Epileptologists and all functional Communi
Slide 20: Closing the Treatment Gap: Enhanced RNS Therapy Access
Closing the Treatment Gap: Enhanced RNS Therapy Access Patient Indication • Enrollment completed – Q4 2023 Expansion: RNS • Planned Implant follow up completion – H1 2025 Access for • 40% of DRE Patients Generalized Epilepsy • Expansion to additional +1,800 Epileptologists and all functional Communi
Slide 21: Closing the Treatment Gap: Enhanced RNS Therapy Access
Closing the Treatment Gap: Enhanced RNS Therapy Access • Completed enrolling and implanting the number of Patient Indication patients required for FDA submission – Q4 2023 Expansion: RNS • Submission after 1-year post-implant follow up System Access for • 40% of DRE Patients Generalized Epilepsy • E
Slide 22: Closing the Treatment Gap: CEC Growth Opportunity
Closing the Treatment Gap CEC Growth Opportunity MACRO TRENDS • Number of CECs increased from 151 in 2012 3 to 256 in 2019 50K DRE patients admitted • 150% increase in number of epileptologists 2 3 to CECs annually per capita from 2012 to 2019 1.2M • Epilepsy monitoring unit (EMU) admissions 3 >$2B
Slide 23: Leveraging the Power of the RNS System's Data Collection, Brain Monitoring and Analysis Capabilities
Leveraging the Power of the RNS System’s Data Collection, Brain Monitoring and Analysis Capabilities ® Strategic Collaboration Demonstrates NeuroPace’s Data Offers a Window to the Brain and May Help Inform Treatment Strategies First of its kind collaboration: initial step into extending the benefits
Slide 24: DIXI Partnership Offers Comprehensive Solution for Seizure Localization
DIXI Partnership Offers Comprehensive Solution for Seizure Localization Focal Seizures Start in specific locations of the brain Stereo EEG electrodes are used in CECs for seizure localization • Determine starting location and transmission network of seizure • Stereo EEG is less invasive, offers fast
Slide 25: Distribution of DIXI Stereo EEG Products Leads to Earlier Patient Engagement
Distribution of DIXI Stereo EEG Products Leads to Earlier Patient Engagement Accelerates core RNS business by helping to inform therapy decisions earlier • ~2/3 of RNS patients go through intracranial EEG monitoring as part of the diagnostic process • Most patients that have stereo EEG procedure are
Slide 26: Closing the Treatment Gap to Drive Long-Term Growth
Closing the Treatment Gap to Drive Long-Term Growth Referral marketing to Earlier patient education to epileptologists increase pull through Direct-to-patient Broaden RNS adoption Grow the Market Take Share within CECs digital marketing through CECs Commercial Awareness & Demand Execution Expand the
Slide 27: Financial Performance
Financial Performance Total Cash Balance of $66.5M (as of 12/31/2023), including ~$7.9M net proceeds from ATM equity financing facility in Q4 2023, provides sufficient capital to fund planned operations through mid-2026 Preliminary Preliminary $17.5 - $18 $16.5 $16.4 4Q23 FY2023 (unaudited) (unaudit
Slide 28: Summary
Summary Positioned for growth and focused on revenue, operating discipline, and effective cash management Prioritizing utilization and adoption of the RNS System across existing and new clinicians Project CARE pilot to expand access to the RNS System Transforming the lives of within the community se