Hls Therapeutics, Inc. · TSX:HLS
Hls Therapeutics — Q1 2020 Earnings Presentation
22 slides from Hls Therapeutics's earnings presentation, May 7, 2020
Slide 1: Investor Presentation
Investor Presentation Greg Gubitz | CEO Gilbert Godin | President & COO May 2020 TSX - HLS
Slide 2: Forward-looking statements
Forward-looking statements Certain statements in this presentation are “forward-looking statements”. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not alwa
Slide 3: HLS's methodical strategy
HLS’s methodical strategy Staged approach KEY STRENGTHS Operational pharma know-how 1. FOUNDATIONAL cash flow Business development expertise 3. LATE-STAGE CLINICAL Efficient corporate platform explosive growth Strong balance sheet 2. TRANSFORMATIVE organic growth Canadian-based, North American-focus
Slide 4: Rapid scale since inception
Rapid scale since inception REVENUE ADJUSTED CASH FROM 1 (US$ millions) EBIDTA OPERATIONS 6 2 (US$ millions) (US$ millions) $54.2 $31.6 $26.4 TRANSACTIONS THERAPEUTIC AREAS For the year ended December 31, 2019 15,000 MENTAL HEALTH PATIENTS 90 EMPLOYEES LISTED ON TSX DE-LEVERED & REFINANCED DEBT DIVI
Slide 5: Our portfolio
Our portfolio FOUNDATIONAL PRODUCTS Clozaril Schizophrenia U.S./Canada Acquired 2015 Marketed CSAN Pronto Safety diagnostic to Clozaril therapy U.S./Canada In-licensed 2019 Marketed as of Nov 2019 Absorica Acne U.S. Acquired 2016 Marketed by third party TRANSFORMATIVE PRODUCTS Vascepa Cardiovascular
Slide 6: Clozaril: Well established antipsychotic in North America
Clozaril: Well established antipsychotic in North America WHO essential medicine Schizophrenia Clozaril 1% of population 1/3 patients >15,000 refractory to first line treatment active patients LIFE CHANGING US$27.2 Million Clozaril can be life changing, revs in Canada in 2019 often the only and last
Slide 7: CSAN: patient portal is an economic moat for Clozaril in Canada
CSAN: patient portal is an economic moat for Clozaril in Canada Supports resilient demand for product 200,000 55% 25 dedicated resources blood market tests/year share Sales reps Nurses Physician consultants 50,000 Every week calls to Follow-up with 24/7 availability customers/ 1,300 patients year to
Slide 8: PERSERIS: Exclusive Canadian rights
PERSERIS: Exclusive Canadian rights FDA-approved First once-monthly risperidone long-acting injectable (LAI) Strong label and differentiated core claims Compelling positioning and well-defined marketing plan 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 Accepted for HC Response Target Launch review by HC Levera
Slide 9: Vascepa (Icosapent Ethyl): Transformational anchor to launch our second therapeutic franchise
Vascepa (Icosapent Ethyl): On path to become a first-in-class Rx cardiovascular (CV) product CV disease is the #1 killer worldwide Statins alone are not enough Vascepa is the first and only Health Canada-approved drug to reduce the risk of CV events and death in statin-treated patients with elevated
Slide 10: Vascepa: REDUCE-IT trial delivered Blockbuster results
Vascepa: REDUCE-IT trial delivered Blockbuster results Trial design Trial results Primary endpoint Significant reductions on secondary endpoints 8,200 PATIENTS statin placebo CV1 Heart Stroke Surgical + Death Attack bypass statin Vascepa 25% 20 % 31 % 28 % 35 % + Reduction in Major Adverse CV1 Event
Slide 11: Vascepa: 30% Reduction in First and Subsequent Events
Vascepa: 30% Reduction in First and Subsequent Events Primary Composite Endpoint 0.6 RR, 0.70 P<0.0001 Placebo + Statin (Total Cardiac Events) 0.5 Vascepa + Statin (Total Cardiac Events) “This may be the biggest development Cumulative Events per Patient 0.4 30% in cardiovascular prevention 159 fewer
Slide 12: Vascepa: Characteristics of a category leader
Vascepa: Characteristics of a category leader The Unmet The Problem Need Solution Vascepa #1 Killer LDL- Residual effectively and safely lowers globally is related risk CV events by CV disease risk 30% Estimated revenue opportunity of C$200-300M per year TSX - HLS HLS THERAPEUTICS INC. 12
Slide 13: Vascepa – Strong differentiator and market position
Vascepa – Strong differentiator and market position HLS has exclusive Canadian rights to Vascepa Deal Structure: $5M paid upfront $60M* in milestone payments largely tied to sales Double-digit tiered-royalty 2019 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 HC APPROVAL LAUNCH Vascepa granted 8 years of Data Protecti
Slide 14: Trinomia: Expanding our cardiovascular franchise
Trinomia: Expanding our cardiovascular franchise In-licensed from Ferrer Internacional, S.A. (Spain private) INDICATION DIFFERENTIATION SECONDARY TRI-COMBO CAPSULE PREVENTION OF “Polypill” CARDIOVASCULAR COMPLIANCE/ADHERENCE IMPROVEMENT EVENTS Patients at risk following an initial CV event are poly
Slide 15: Trinomia: Exclusive Canadian rights
Trinomia: Exclusive Canadian rights 46,000 30+ Rx/month 36 months countries approved in post launch (Spain) 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 Accepted for HC Response Target Launch review by HC Leverages Vascepa sales and marketing infrastructure TSX - HLS HLS THERAPEUTICS INC. 15
Slide 16: Positive tailwinds
Market Balance trends sheet strength Positive tailwinds Rich Robust proprietary Organic pipeline deal flow growth TSX - HLS HLS THERAPEUTICS INC. 16
Slide 17: Significant head room to grow portfolio
Strong organic growth built-in with rich pipeline of proprietary deal flow THERAPEUTIC FOCUS OPPORTUNISTIC OPERATING LEVERAGE = ORGANIC GROWTH Significant head room to grow portfolio TSX - HLS HLS THERAPEUTICS INC. 17
Slide 18: Veteran specialty pharma leadership team
Veteran specialty pharma leadership team MANAGEMENT BOARD William Wells | Executive Chairman William Wells | Executive Chairman Former CEO and Director of Biovail Current or former Board roles with: Biovail/Valeant, Medgenesis, ACADIA Pharmaceuticals, EnerCare and Evizone Greg Gubitz | Chief Executi
Slide 19: A business of scale based on two foundational products
A business of scale based on two foundational products With potentially transformative products on deck REVENUE* ADJUSTED EBIDTA*1 CASH FROM OPERATIONS ($ millions) ($ millions) ($ millions) 75.1 55.9 32.7 Clozaril 61.4 27.2 26.4 27.5 Absorica* 54.0 54.2 21.7 11.6 41.1 38.5 8 9.6 31.6 20.0 47.5 49.8
Slide 20: Q1 2020: Solid Financial Results
Q1 2020: Solid Financial Results With potentially transformative products on the launch-pad REVENUE ADJUSTED EBIDTA1 CASH FROM OPERATIONS ($ millions) ($ millions) ($ millions) 13.9 13.2 2.3 Product Sales 2.5 8.3 8.3 Royalties 6.3 5.3 11.6 10.7 Q1 19 Q1 20 Q1 19 Q1 20 Q1 19 Q1 20 Q1 2020 expenses re
Slide 21: Strong balance sheet
Strong balance sheet SUMMARY BALANCE SHEET & CAPITALIZATION (in USD ‘000,000’s, unless otherwise noted) At Dec 31, 2019 At Mar 31, 2020 $100M debt expansion Cash and Cash Equivalents 47.1 41.6 facility available Senior Secured Term Loan 93.8 92.4 Net Debt (Term Loan less Cash) 46.7 50.8 At Dec 31, 2
Slide 22: Strong cash flow and balance sheet
Strong cash flow and balance sheet Strength Dividend: $0.20 per share per year Debt Refi: De-levered & ~$10M annual savings Clear value creating strategy Execution Cash flow/Growth/Explosive growth 4 commercial-stage assets 2 assets in review at Health Canada Vascepa: Launched February 2020 Opportun