Pacific Edge Limited · NZX:PEB
Pacific Edge — Investor Presentation (September 2021)
39 slides from Pacific Edge's investor presentation, Sep 23, 2021
Slide 1: Pacific Edge Capital Raising Presentation
For personal use only PACIFIC EDGE CAPITAL RAISING PRESENTATION 23 SEPTEMBER 2021
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Information of a general nature Financial data This presentation has been prepared by Pacific Edge Limited ( PEL). The information in this presentation is of a general nature All dollar values are in New Zealand dollars unless otherwise stated. For personal use only a
Slide 3: Contents
CONTENTS For personal use only 1. EXECUTIVE SUMMARY 2. CAPITAL RAISING OVERVIEW 3. COMMERCIAL AND STRATEGIC PROGRESS APPENDICES A. THE GLOBAL OPPORTUNITY FOR CXBLADDER B. KEY RISKS & FOREIGN SELLING RESTRICTIONS 3
Slide 4: Executive Summary
For personal use only A globally focused cancer diagnostics company specialising in developing and EXECUTIVE SUMMARY commercialising molecular diagnostic tests that address large unmet needs in the detection and management of cancer
Slide 5: Pacific Edge at a Glance
PACIFIC EDGE AT A GLANCE A GLOBAL CANCER DIAGNOSTICS COMPANY For personal use only Validated and class leading suite of Cxbladder products • Four urine-based diagnostic tests (Cxbladder) for the detection and management of Urothelial Cancer (UC) • First new molecular diagnostic tests to be commercia
Slide 6: FY21 Was a Year of Achievement
FY21 WAS A YEAR OF ACHIEVEMENT SIGNIFICANT COMMERCIAL AND FINANCIAL MILESTONES DRIVE GROWTH For personal use only Commercial Milestones Financial Milestones New Zealand • More than 70% of New Zealand’s population now have access to Cxbladder through contract coverage by their public healthcare • Str
Slide 7: Strengthened Team
STRENGTHENED TEAM SENIOR MANAGEMENT & BOARD OF DIRECTORS For personal use only New appointments in the past 12 months add expertise and experience as Pacific Edge accelerates its global growth strategy Global Executive Team PEDUSA Executive Team Board of Directors Chief Executive Officer David Darli
Slide 8: FY21 Delivered Strong Improvement Across Key Financial Metrics
FY21 DELIVERED STRONG IMPROVEMENT ACROSS KEY FINANCIAL METRICS, DESPITE THE IMPACT OF COVID-19* For personal use only Key financial metrics 12 ✓ 101% increase in total revenue 10 ✓ 76% increase in operating revenue 8 $Millions ✓ 25% improvement in net loss after tax 6 4 ✓ 52% increase in cash receip
Slide 9: Growth Continues in FY22
GROWTH CONTINUES IN FY22 For personal use only Total Laboratory Throughput 6,000 The first quarter of FY22* was a record quarter for Cxbladder test volumes and cash receipts 5,356 5,000 Q1 FY22 Total Laboratory Throughput: ✓ Up 79% on Q1 FY21 Test Numbers ✓ Up 9% on Q4 FY21 4,000 ✓ Up 35% on quarter
Slide 10: Outlook
OUTLOOK For personal use only ▪ Pacific Edge has a defined growth strategy and is well positioned to capitalise on recent commercial milestones ▪ The U.S. remains Pacific Edge’s primary near term focus: ▪ An increasing number of commercially reimbursed tests from CMS and Kaiser Permanente covered pa
Slide 11: Capital Raising Overview
For personal use only CAPITAL RAISING OVERVIEW
Slide 12: Raising Capital to Accelerate Growth and ASX Dual Listing
RAISING CAPITAL TO ACCELERATE GROWTH AND ASX DUAL LISTING For personal use only • Pacific Edge’s priority is to ensure it has the resources and capacity to capitalise on its recent commercial milestones and to execute and accelerate its growth strategy in markets of scale • Funds raised will be used
Slide 13: Capital Raising Overview
CAPITAL RAISING OVERVIEW For personal use only • An equity raising, comprising: Offer size and • A NZ$60 million (A$58.1 million)* Placement, equating to 5.6% of Pacific Edge’s current market capitalisation structure • A NZ$20 million (A$19.4 million) Retail Offer (with the ability to accept over su
Slide 14: Intended Use of Proceeds
INTENDED USE OF PROCEEDS For personal use only Accelerate U.S. market penetration (40-50% of funds raised): • Key growth initiatives include: - Initiate commercial launch of Cxbladder Resolve and the use of multiple Cxbladder tests used in combination, in FY22 - Accelerate U.S. market penetration wi
Slide 15: Intended Use of Proceeds (cont)
INTENDED USE OF PROCEEDS (CONT) For personal use only Further leverage first mover advantage (20-30% of funds raised): • Pacific Edge is uniquely positioned with strong first mover advantage in the detection of urothelial cancer and multiple Cxbladder products. It has taken years of investment to de
Slide 16: Timetable
TIMETABLE For personal use only Placement Placement conducted under trading halt 23 September 2021 No later than immediately prior to market Announce completion of placement and trading halt lifted on NZX open on 24 September 2021 Settlement, allotment and trading of placement shares on NZX commence
Slide 17: Commercial and Strategic Progress
New Zealand For personal use only • Continued commercial adoption of Cxbladder, with the objective to complete coverage of the New Zealand population United States • CMS reimbursement COMMERCIAL AND STRATEGIC • Kaiser Permanente PROGRESS • United Healthcare* • Scale up of U.S. commercial operations
Slide 18: New Zealand Is Leading the Global Adoption of Cxbladder
NEW ZEALAND IS LEADING THE GLOBAL ADOPTION OF CXBLADDER For personal use only • More than 70% of New Zealand’s population now have access to Cxbladder through contract coverage by their public healthcare providers, who have adopted Cxbladder into commercial mainstream use and their standard of care
Slide 19: Significant U.S. Total Addressable Market
SIGNIFICANT U.S. TOTAL ADDRESSABLE MARKET A MORE THAN US$3.5 BILLION OPPORTUNITY FOR CXBLADDER PRODUCTS IN BOTH THE EVALUATION OF HAEMATURIA AND MONITORING FOR DISEASE RECURRENCE For personal use only U.S. ANNUAL ADDRESSABLE MARKET MORE THAN 5 MILLION CXBLADDER TEST OPPORTUNITIES PER YEAR WITH AN ES
Slide 20: Reimbursement Coverage by the CMS
REIMBURSEMENT COVERAGE • CMS* reimbursement coverage for Cxbladder Detect and BY THE CMS PROVIDES A Cxbladder Monitor from 1 July 2020 at US$760 per test For personal use only SIGNIFICANT VALIDATION AND • CMS related tests (Medicare and Medicare Advantage) COMMERCIAL MILESTONE accounted for 67% of U
Slide 21: Kaiser Permanente: Large Commercial Customer for Cxbladder
KAISER PERMANENTE: LARGE COMMERCIAL CUSTOMER FOR CXBLADDER AND PROVIDES For personal use only SIGNIFICANT VALIDATION • Kaiser Permanente (Kaiser) has concluded a national agreement with Pacific Edge for Cxbladder products • Kaiser started commercially using Cxbladder Monitor from December 2020, foll
Slide 22: United Healthcare Coverage Is a Significant Reimbursement Milestone
UNITED HEALTHCARE COVERAGE IS A SIGNIFICANT REIMBURSEMENT For personal use only MILESTONE CXBLADDER COVERED BY UNITED HEALTHCARE • United Healthcare is the largest private healthcare provider in the U.S. with over 43 million members, including more than 6.5 million Medicare Advantage policyholders •
Slide 23: Scale-up of U.S. Commercial Operations Is Driving Growth
SCALE-UP OF U.S. COMMERCIAL OPERATIONS IS DRIVING GROWTH PACIFIC EDGE HAS STRENGTHENED ITS U.S. BASED EXECUTIVE AND SENIOR MANAGEMENT TEAM For personal use only • Pacific Edge is growing its US based sales teams to accelerate the adoption of Cxbladder following the successful achievement of CMS, Kai
Slide 24: Pivotal Paper Highlights Significant Outperformance of Cxbladder Products
• The paper titled ‘Cxbladder for prioritising patients with high impact PIVOTAL PAPER HIGHLIGHTS tumours’ evaluates the use of Cxbladder Resolve (CxbR), alone and in combination with other Cxbladder tests, to identify and prioritise patients at high risk for UC SIGNIFICANT OUTPERFORMANCE For person
Slide 25: Recent Published Evidence Shows Significant Outperformance
RECENT PUBLISHED EVIDENCE CXBLADDER PROVIDES SIGNIFICANT PATIENT OUTCOMES IN REAL-WORLD COVID-19 SETTING SHOWS SIGNIFICANT • The evaluation and lookback study was performed by the University of For personal use only OUTPERFORMANCE OF California San Francisco (UCSF) on a cohort of 52 patients who wer
Slide 26: Large National Healthcare Providers and Payers Targeted
LARGE NATIONAL HEALTHCARE PROVIDERS AND PAYERS TARGETED BY PACIFIC EDGE ACROSS THE U.S., SOUTHEAST ASIA AND AUSTRALASIA For personal use only U.S. U.S. SOUTHEAST ASIA ✓ Kaiser Permanente (completed) ✓ United Healthcare (completed)* • Singapore General Hospital ✓ CMS reimbursement (completed) • Unive
Slide 27: Appendix A: The Global Opportunity for Cxbladder
For personal use only APPENDIX A THE GLOBAL OPPORTUNITY FOR CXBLADDER
Slide 28: Urothelial Cancer Is a Significant Global Healthcare Challenge
UROTHELIAL CANCER IS A SIGNIFICANT GLOBAL HEALTHCARE CHALLENGE For personal use only • ~ 550,000 new cases in 20181 • ~ 200,000 deaths annually1 Urothelial Cancer • 10th most common cancer globally but 6th most common in men1 Kidney 5% are upper • High recurrence rates (around 70% recurrence tract (
Slide 29: Urothelial Cancer Is a Significant Healthcare Challenge in the U.S.
UROTHELIAL CANCER IS A SIGNIFICANT HEALTHCARE CHALLENGE IN THE U.S. For personal use only ~7m patients ~4m cystoscopies were Approximately 83,730 4th most common cancer in present with haematuria performed in 20181 estimated new cases of men in the U.S.3 annually and 3.4m are (many of which are unne
Slide 30: Existing Bladder Cancer Tests and Procedures Have Significant Shortcomings
EXISTING BLADDER CANCER TESTS AND PROCEDURES HAVE SIGNIFICANT SHORTCOMINGS… …they are expensive, invasive and have poor relative performance … providing significant opportunities for new For personal use only diagnostic tests that are cheaper, non-invasive and accurate CYSTOSCOPY CYTOLOGY FISH USE D
Slide 31: Cxbladder Revolutionizes How Urologists Detect and Manage Urothelial Cancer
CXBLADDER REVOLUTIONIZES HOW UROLOGISTS DETECT AND MANAGE UROTHELIAL CANCER • Four class leading, urine based diagnostic tests for UC addressing multiple unmet needs For personal use only across the clinical pathway: o Cxbladder Triage (CxbT): Front line test for use in the primary evaluation of hae
Slide 32: Cxbladder Is Used at Multiple Decision Points Across the Clinical Pathway
CXBLADDER IS USED AT MULTIPLE DECISION POINTS ACROSS THE CLINICAL PATHWAY For personal use only Cxbladder Cxbladder Cxbladder Cxbladder Triage Detect Resolve Monitor Patient Presentation Primary Detection Primary Detection UC Surveillance Risk stratification of patient ✓ ✓ ✓ Chronic microhaematuria
Slide 33: Cxbladder Has Class Leading Performance Metrics
CXBLADDER HAS CLASS LEADING PERFORMANCE METRICS: SENSITIVITY, SPECIFICITY AND NEGATIVE PREDICTIVE VALUE (NPV) For personal use only Primary Detection of UC - Haematuria Surveillance of UC Cxbladder Triage Cxbladder Detect Cxbladder Resolve Cxbladder Monitor Sensitivity 82% Sensitivity 92% Sensitivit
Slide 34: Cxbladder Has a Multi-Market and Multi-Product Growth Opportunity
CXBLADDER HAS A MULTI-MARKET AND MULTI-PRODUCT GROWTH OPPORTUNITY For personal use only Rest of World Monitor Triage 25% 23% 24% Total Laboratory Total Laboratory Throughput Throughput by Region by Test Type (as at 31 Mar 2021) (as at 31 Mar 2021) U.S. 75% Detect 53% 34
Slide 35: Appendix B: Key Risks & Foreign Selling Restrictions
For personal use only APPENDIX B KEY RISKS & FOREIGN SELLING RESTRICTIONS
Slide 36: Key Risks
KEY RISKS For personal use only Like any investment, there are risks associated with an investment in Pacific Edge shares. Before investing in Pacific Edge, you should be aware than an investment in Pacific Edge has a number of risks, some of which are specific to Pacific Edge and some of which rela
Slide 37: Key Risks (cont)
KEY RISKS (CONT) For personal use only Impact of Covid- Pacific Edge’s operational and financial performance has been significantly impacted by Covid-19. This includes disruption to supply chains, which 19 on Pacific has the potential to impact Pacific Edge’s ability to procure equipment required to
Slide 38: Key Risks (cont)
KEY RISKS (CONT) For personal use only In the ordinary course of conducting its business, Pacific Edge is exposed to potential litigation and other proceedings, including through claims of intellectual property infringement or breach of agreements. If such proceedings are brought against Pacific Edg
Slide 39: Foreign Selling Restrictions
FOREIGN SELLING RESTRICTIONS International Offer Restrictions This document does not constitute an offer of new ordinary shares (New Shares) of Pacific Edge in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any For personal use only person, and
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