Staar Surgical Company · NASDAQ:STAA
Staar Surgical — Benchmark One-on-One Investor Conference 2011
34 slides from Staar Surgical's conference presentation, May 12, 2011
Slide 1: Benchmark One-on-One Investor Conference
® (NASDAQ: STAA) Cataract IOLs Refractive ICLs Benchmark One-on- One Investor Conference May 12, 2011
Slide 2: Forward-Looking Statements
FORWARD -LOOKING STATEMENTS All statements in this presentation that are not statements of historical fact are forward -looking statements, including any projections of earnings, revenue, profit margin, cash or other financial items, any statements of the plans, strategies, and objectives of managem
Slide 3: STAAR Investment Considerations
STAAR Investment Considerations Two Large Market Opportunities Two Differentiated Product Lines Double Digit Revenue Growth Profitable/Expanding Gross Margins New Technology Introductions/Approvals Strong Product Pipeline No Debt/Strong Balance Sheet ®
Slide 4: Intraocular Lens Focus
Intraocular Lens Focus Lenses Placed within the Eye Cataract Lens Refractive Lens Replaces natural Sits in front of natural crystalline lens crystalline lens Cataract IOL Refractive ICL™ ®
Slide 5: Surgical Refractive Correction Market
Surgical Refractive Correction Market Up to 1.5 billion nearsighted people worldwide 160 million contact lens wearers 5.1 M Annual Refractive procedures WW by 2015 7.1 % Annual Growth LASIK Market challenged by economy, technology limitations & negative media coverage Source: The Global Refractive S
Slide 6: Visian ICL
Visian ICL ® Implantable Collamer Lens better known as “the Implantable Contact Lens” Made from a proprietary material called Collamer® Corrects myopia (nearsightedness) inability to see far distance Toric ICL version corrects both myopia and astigmatism Premium product with premium results ®
Slide 7: Visian ICL Competitive Landscape
Visian ICL Competitive Landscape STAAR is the market leader in this segment >65% Unit Market Share Other players (Anterior Phakic IOL): Ophtec <30% Share Abbott has marketed as distributor with little success Novartis ~5% Share CE Mark Approval in August 2008 Very little success in Europe LASIK is t
Slide 8: ICL vs. LASIK
ICL vs. LASIK Small micro incision Incision over 1 inch-long Adds a lens into the eye Burns material away Permanent but removable Cannot be reversed Future options preserved May reduce future options Provides UV protection No UV protection No induced dry eye Potential dry eye induced 99% satisfied a
Slide 9: Superior Data for Young Adults in the Military with Low Myopia
Superior Data for Young Adults in the Military with Low Myopia “Weapons Grade Vision” UCVA ICL ICL LASIK Fort Fort Lackland Bragg* Hood* Air Force** 20/10 or better 9% 4% 20/15 or better 81% 78% 50% 20/20 or better 98% 100% 93% * Eyes with pre-op cylinder of 1D or less. ** Dr. Chaz Riley, USAF, Ocul
Slide 10: Visian ICL Growth Dynamics
VISIAN ICL GROWTH DYNAMICS 24.48% growth first four months of 2011 Next Generation Products Recently Approved V4b with Expanded Treatment Ranges V4c eliminating the need for an iridotomy New Visian ICL DTC Campaign Trials Potential New Approvals in U.S. and Japan Visian ICL gaining market share glob
Slide 11: New Visian V4b ICL
New Visian V4b ICL Introduced in 23 of 25 CE markets New ranges alone accounted for 8% growth Q1 Expands treatment range on both Visian ICL (myopia) and HICL (hyperopia) Can treat virtually any refractive error Can be used as LASIK enhancement New Visian Hyperopic Toric ICL ®
Slide 12: New Visian V4c ICL
New Visian V4c ICL Proprietary aqueous port in center of ICL Restores natural flow within the eye Eliminates the need for iridotomy Makes procedure much more convenient for the patient and surgeon (LASIK -like) Makes economics better for the surgeon Rollout in Europe the Second Half of 2011 ®
Slide 13: Visian V4c ICL Clinical Trials
Visian V4c ICL Clinical Trials First Phase study in 2008 (Dr. Shimizu in Japan) 6 patients implanted with standard ICL in one eye and modified ICL in fellow eye. Second Phase study in 2010 (Dr. Shimizu) 19 patients – repeated same protocol Dr. Shimizu has continued to use
Slide 14: Visian ICL Product Pipeline
Visian ICL Product Pipeline Product R D CE Japan U.S. Toric ICL √ √ √ 2011 2011 V4b Expanded Range √ √ √ NP NP Lower myopes and toric hyperopic V4c √ √ √ E E Eliminates need for PI V5 E E 2012 2012 2013 Preloaded, enhanced safety design V6 E E Multifocal, MF Toric, forgiving design E= In the plannin
Slide 15: Visian ICL DTC Testing
Visian ICL DTC Testing Movie Theater: STAAR Campaign Pre-movie ads, shown before all movies for 4 weeks In-lobby promotions – consumer leaflets – surgeon and/or visianinfo Evaluating data currently for next test market Cable TV: Co-op Campaign with Local Surgeon Network TV Co-op Campaign with Local
Slide 16: DTC Working in Korea
DTC Working in Korea Moved Market Share from 5% to 12% in 2 Years 30 Second Radio Ads Subway Signage Bus Wraps ®
Slide 17: New Advertisement 2011
New Advertisement 2011 Bus Side Ad * Advertisements on the side of buses = 100 buses throughout downtown area in Seoul (esade
Slide 18: New Advertisement 2011
Continuity In College Lecture WORN v BOC Et (Osa New Advertisement 2011 Commercials in Movie Theater De Act) It is because the stable vision Is. ‘mostimportant after surgery. \Whyis the ICL expensive than Laser refractive surgery? Each ICL custom made to meet the needs of each individual eye Why ist
Slide 19: Visian ICL Revenue Gains
Visian ICL Revenue Gains Increase of 24.48% through 4 Months 2011 $7.0 $6.0 $5.0 ons $4.0 Milli $3.0 $2.0 $1.0 $0.0 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 •10% ICL market penetration equals $200M at 85% to 90% GM ®
Slide 20: Worldwide Cataract Market
Worldwide Cataract Market “Large and Growing” $3.4 billion Worldwide Cataract IOL market in 2015 8.1% CAGR U.S. Market is $1 billion in 2015 6.5% CAGR Driven by innovation / improved outcomes / aging population Source: The Global IOL Market by Market Scope June 2010 ®
Slide 21: Cataract IOL Competitive Landscape is Tough
Cataract IOL Competitive Landscape is Tough 18.9 million global IOLs Implanted in 2010 The Big Three Global IOL share leaders Alcon (Novartis) 53% AMO (Abbott) 16% B&L (Private) 10% STAAR goal: the fastest growing in target markets 7% share in Japan, 3% share in U.S., target markets Other players: H
Slide 22: STAAR Cataract IOLs
STAAR Cataract IOLs Preloaded Proprietary IOLs nanoFLEX Family of IOLs •Acrylic •Silicone Silicone Toric Plate Collamer nanoFLEX (Premium Channel) Aspheric (NTIOL) Strategy: Move to Premium IOLs • Aspheric • Toric Collamer • Less spectacle dependent •All Preloaded ®
Slide 23: Unique Collamer Material
Unique Collamer ® Material Proprietary hydrophilic material produces superior quality of vision 40% water content produces: Reduced glare or halo effect Free from glistenings Patent protection until 2014/mfg know-how Preliminary data demonstrates “accommodation” potential ®
Slide 24: CAST with nanoFLEX IOL
CAST with nanoFLEX ® IOL “Collamer Accommodating Study Team” Clinical observations: Collamer provides some accommodation or better visual results Inherent property of the material?? Collamer Accommodating Study Team Eight leading ophthalmic surgeons All patients tested with same reading tools to mea
Slide 25: CAST Findings
CAST Findings Distance Vision: All cataract patients see very well at far distance Near Vision: Usually need some reading glasses nanoFLEX SUPERIOR to all Standard IOLs Intermediate Vision: Usually need glasses for laptop nanoFLEX SUPERIOR to ALL IOLs, both Standard and Premium ®
Slide 26: Global Premium IOL Channel
Global Premium IOL Channel 536k procedures grow to 3.3M in 2020 $365M market grow to $1.3B by 2016 “Rapidly increasing presbyopic segment” U.S. market will be 41% of procedures in 2020 Provides good near, intermediate and distance vision results Surgeons and patients motivated Source: The Global Mar
Slide 27: nanoFLEX CE Mark Approval
nanoFLEX CE Mark Approval Approval received in late April Will begin rollout to key European markets beginning in June Believe that the nanoFLEX Toric IOL will follow later this year to CE Markets Upside to 2011 expectations and 2012 full year (the nanoFLEX Family) ®
Slide 28: STAAR IOL Product Pipeline
STAAR IOL Product Pipeline Product R D CE Japan U.S. Preloaded Silicone √ √ √ √ 2011 Preloaded 1P Acrylic √ √ 2011 √ NP nanoFLEX IOL √ √ √ ?? √ nanoFLEX Toric √ E 2011 ?? 2011 nanoFLEX II E E 2012 ?? 2012* *Depends on label claim pursued. Could be 2013. ® E= In the planning stage.
Slide 29: 2011 Q1 Results
2011 Q1 Results Comparison to Q1 2010 ($000’s) Q1 2011 Q1 2010 Improvement Revenue/CORE $14,849 $13,778 +8%/+10% Gross Profit Dollars $9,629 $8,829 +9% Gross Profit Margin 64.8% 64.1% +70bps Operating Expenses $9,421 $8,752 +8% Operating Income $208 $76 +173% Inc./Loss from Cont’d Ops $300 ($636) +$
Slide 30: 2011 Key Metric Report Card
2011 Key Metric Report Card Q1 Q2 Q3 Q4 2010 Double Digit Revenue Growth* Grow ICL Sales by 25%* Continuous Expansion of GM %, End year at 66% Profitable in 3 of 4 quarters and for the full year *Through 4 months 2011: Revenue +10% and ICLs +24.48% ®
Slide 31: STAAR Balance Sheet
STAAR Balance Sheet Profitable & Generating Cash/$10.4M end of Q1 Company Basically Debt Free Only a working line of credit in Japan $128M in NOLs (Worth $1 a share) 35 million shares of common stock outstanding 1.4 million warrants at approximately $4 ®
Slide 32: STAAR Near Term Catalysts
STAAR Near Term Catalysts European Launch of New ICL & IOL Products Visian ICL V4b and V4c nanoFLEX IOL Visian ICL growth in Japan (2010 approval) FDA and PMDA Approval of Visian Toric ICL CAST II clinical results for Cataract IOLs ®
Slide 33: STAAR Investment Considerations
STAAR Investment Considerations Two Large Market Opportunities Two Differentiated Product Lines Double Digit Revenue Growth Profitable/Expanding Gross Margins New Technology Introductions/Approvals Strong Product Pipeline No Debt/Strong Balance Sheet ®
Slide 34: Benchmark One-on-One Investor Conference
® (NASDAQ: STAA) Cataract IOLs Refractive ICLs Benchmark One-on- One Investor Conference May 12, 2011
Staar Surgical — Benchmark One-on-One Investor Conference 2011 on 6ix