Clever Culture Systems Limited · ASX:CC5
Clever Culture Systems — Corporate Update (April 2019)
27 slides from Clever Culture Systems's corporate update, Apr 30, 2019
Slide 1: Business Update Presentation (ASX announcement)
BUSINESS UPDATE PRESENTATION Adelaide, Australia, 30 April 2019: Australian medical technology company LBT Innovations Limited (ASX: LBT) (LBT or the Company), a leader in medical technology automation using artificial intelligence, is pleased to disclose the attached business update Presentation. T
Slide 2: Company Update Presentation
Company Update Presentation 30 April 2019 Brent Barnes Managing Director & Chief Executive Officer ASX code: LBT lbtinnovations.com
Slide 3: Disclaimer
Disclaimer This document contains certain forward-looking statements that involve risks and uncertainties. Although we believe that the expectations reflected in the forward-looking statements are reasonable at this time, we can give no assurance that these expectations will prove to be correct. Giv
Slide 4: Agenda
Agenda 1. Company Overview 2. Sales & Commercial Strategy & Update 3. Value Proposition & Conclusions Slide No. 3 © LBT Innovations 2019
Slide 5: Overview
Overview Artificial intelligence platform automating manual healthcare processes Commercial launch underway EU & FDA cleared - 10,000 AU - US late 2018 patient clinical study Cost and efficiency gains for Proprietary patented Pathology labs 3 times technology faster than manual reading 1st sale comp
Slide 6: Problems facing our customers
Problems facing our customers Poor resource utilisation Shortage of Microbiologists • Up to 85% of plates can be negative • US vacancy rate at any one time is 9% Ensuring consistent results • Declining profession / labour shortage • Microbiologist error rates of 5.5% - 6.6%; over Workplace safety is
Slide 7: Potential target market ~ 13,000 labs
Potential target market ~ 13,000 labs Ideal customer profile Reading 400+ plates per day APAS® delivers ROI in 2.5- 3.5yrs Slide No. 6 © LBT Innovations 2019
Slide 8: First mover advantage
First mover advantage Two main competitors in automation of microbiology • Automate lab work flow but not plate reading - still require microbiologists • Large capital cost ~ US$2.5m+ cost BD Kiestra™ Total Lab • Complex and long lead times WASPLab™ Automation • Low penetration ~ 150 units in 10 yrs
Slide 9: Capital & annuity sales model
Capital & annuity sales model End Customer Pricing Purchase price 50:50 Joint Venture ~US$300,000 5 year revenue leasing model available opportunity Annual Software License: ~US$0.45m per instrument Contribute equally to operational and development costs ~US$20K - $40K Profits shared equally Annual
Slide 10: Corporate overview
Corporate overview Key Statistics (Closing on 29 April 2019) Financials Share Price $0.08 per share Current Cash $4.2 million (as at 31 March 2019) 12-month range $0.059 - $0.150 $4 million facility – process for $1m drawdown SAFA Loan Facility commenced Number of shares 200.9 million Low interest r
Slide 11: Experienced Board and Management
Experienced Board and Management Brent Barnes Kate Costello Damian Lismore Steve Mathwin Simon Arkell Caroline Popper CEO and MD Chairman NED NED NED NED Commenced Oct-16 Commenced Aug-05 LBT Board LBT Management Team LBT’s board bring broad knowledge and experiences to LBT’s management team bring t
Slide 12: Sales & Commercial Strategy & Update
1. Company Overview 2. Sales & Commercial Strategy & Update 3. Value Proposition & Conclusions Slide No. 11 © LBT Innovations 2019
Slide 13: Recap of path to market
Recap of path to market Pre-sales commercialisation Publications Reference Sales Process & white Sales pipeline site(s) papers Analysis Instrument + Instrument Regulatory Analysis Module Module Development Clearances Development cleared for sale Product Development Strategy: Development, global foot
Slide 14: 2018 lessons we learned
2018 lessons we learned Delays in instrument and analysis module development postponed availability of product for sale Sales Pipeline and Process • Sales cycle longer than expected Pre-sales commercialisation • Additional modules will attract more customers Publications & Reference • US FDA clearan
Slide 15: Issue – Not available in global markets
Issue 1 – Not available in global markets Constrained to a single market, Australia Slide No. 14 © LBT Innovations 2019
Slide 16: Issue – Limited Australian opportunities
Issue 2 – Limited Australian opportunities Decision making groups 10 9 8 • 26 Total decision making groups: 7 • Number of Buying Groups* 6 7 private 5 4 • 19 public 3 2 • Total market: 20 - 40 Instruments 1 0 • 4 pipeline sales in 2018 delayed NSW QLD SA ACT NSW NT QLD SA TAS VIC WA PRIVATE PUBLIC •
Slide 17: Issue – AM development process
Issue 3 – AM development process Issues: • Establishment of a new process • Transitioning to a scalable and repeatable “manufacturing” process for software • Highly regulated, Class II medical device • End-to-end activities took longer than expected Business Case Machine Learning Process & IVD / Cli
Slide 18: Addressing Analysis Module development
Addressing Analysis Module development AM development: critical process allowing the APAS® instrument to be used on more specimens More specimens = increased clinical utility = larger addressable market for sales 1st AM: Urine module for US Moving from invention to software 2010 1 media – 1 AM 2016
Slide 19: 2019 expanding global availability
2019 expanding global availability EU Q3-19 MRSA AM available 3 media types supported Q4-19 Urine AM available 2 media types supported US Dec-18 Urine AM 510(k) application submitted H2-19 Urine AM available 1 media type supported H1-20 MRSA AM 510(k) to be submitted to FDA APAS® available for sale
Slide 20: 2019 - US commercialisation pathway
2019 - US commercialisation pathway Targeting to have the only FDA cleared commercial instrument available in the US this year Evaluation study outcome: Review impact of quicker turn around of negative results on patient care delivered by APAS®. 1st US Placement: Key Opinion Leader, KOL presentation
Slide 21: 2019 - EU commercialisation pathway
2019 - EU commercialisation pathway CE Mark for MRSA AM targeted for Q3 2019 Sales focussed on 4 laboratory providers operating 71 sites in Germany German Market Snapshot Commercialisation underway to build sales pipeline • Sales executive started Dec-18 • MRSA study completed by Labor Dr Wisplingho
Slide 22: Value Proposition & Conclusions
1. Company Overview 2. Sales & Commercial Strategy & Update 3. Value Proposition & Conclusions Slide No. 21 © LBT Innovations 2019
Slide 23: LBT opportunity remains large
LBT opportunity remains large Addressable market H2-19 Penetration rate of 4 planned countries 20% 30% 400 units 600 units Cumulative Cumulative instrument sales instrument sales ~AUD$160M ~AUD$240M ~2,000 labs Software licence, building to Software licence, building to ~AUD$16M p.a. ~AUD$24M p.a. R
Slide 24: 2019 opens large markets
2019 opens large markets United States The largest single market for APAS® Independence with an estimated 1,500 laboratories meeting our target profile 2019: FDA clearance for the APAS® UK and Germany Independence targeted for H2-19 2018: Established local sales presence and reference site Lead gene
Slide 25: Investment Highlights
Investment Highlights • APAS® Independence remains first in class as the only FDA cleared Competitive positioning product using AI for automated clinical microbiology reading remains strong • Commercial launch phase commenced 2018 and first sale in Aug 18 • Overcoming lessons of 2018 – optimisation
Slide 26: Brent Barnes
Brent Barnes Managing Director & CEO Level 8, 44 Waymouth Street Adelaide SA 5000 +61 (0)8 8227 1555 info@lbtinnovations.com lbtinnovations.com
Slide 27: APPENDIX 1: Similar products case study
APPENDIX 1: Similar products case study Units placed MALDI-TOF: launched 2004 Case Study APAS® globally MALDI-TOF: ~1500 units Previ Isola: launched 2009 placed after 10 years Independence: ~12% global 1,500 penetration 1,500 units after 10 years 2 Manufacturers: 700 units placed in US Bruker & foll
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