Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (March 2014)
33 slides from Elron Ventures's investor presentation, March 2014
Slide 1: Discover. Innovation
DISCOVER. INNOVATION
Slide 2: Disclaimer
This presentation is for information purposes only. By this presentation, Elron does not intend to solicit offers to purchase its securities and the presentation does not constitute an invitation to receive such offers. Elron may make improvements and/or changes in the features or content presented
Slide 3: Seeking to Change the Face of Healthcare
SEEKING TO CHANGE THE FACE OF HEALTHCARE
Slide 4: Snapshot
SNAPSHOT $569m in exit proceeds since BRAINSGATE 2009 STROKE CARE 30% invested (Elron) invested (total) $91m invested in med-tech POCARED companies since 2009 MICROBIOLOGY 41% invested (Elron) invested (total) 2009-2013: $69m profit NOTAL VISION Also- the acquisition of Given AMD 22% investe
Slide 5: Creating Value
CREATING VALUE Elron shares are traded on the TASE and OTC in the U.S. Market cap (Mar. 9, 2014): $286m Indexes: Biomed, Midcap TA, Mid50, Bluetech Major shareholders: DIC (50%), Yalin Lapidot (10.8%), Meitav Dash (7.2%) 9,000,000 >50% increase in institutional 8,000,000 ownership over the
Slide 6: Elron. Results
ELRON. RESULTS
Slide 7: Results
RESULTS 2009-2013: ~$285m in exit proceeds Also- $284m in proceeds were received in the sale of Given Imaging in Feb. 2014 June 2009 Oct. 2009 May 2010 June 2010 Sept. 2011 Nov. 2011 Nov. 2012 Feb. 2014 7
Slide 8: Results
RESULTS The cumulative profit since Q3/09: $88m The projected profit in Q1/14 from the Given Imaging exit: $107m 2007 2008 2009 2010 2011 2012 2013 8
Slide 9: Results
RESULTS Cumulative cash flow since Q2/09: $67m $15m dividend distributed $51m in loans repaid to banks and controlling shareholders Net cash balance following the Given Imaging exit: $217m (plus $70m in RDC after tax) 2008 2009 2010 2011 2012 2013 9
Slide 10: Partnership
PARTNERSHIP
Slide 11: Asset
ASSET RDC: jointly held by Elron (50.1%) & Rafael (49.9%) The Rafael-Elron agreement is exclusive and indefinite The agreement is in effect as long as Elron maintains a holding in RDC 2nd largest government-owned defense company in Israel $70m invested by RDC in companies since 2009 2012 sal
Slide 12: The Case of Given Imaging
ASSET THE CASE OF GIVEN IMAGING Given Imaging was established in 1993 by RDC RDC’s total investment in the company: $6.1m Q1/14: the company’s acquisition by Covidien for $30 per share in cash The consideration represents a $1b valuation Our share in the consideration: Elron- $204m, RDC- $
Slide 13: Elron. Promise
ELRON. PROMISE
Slide 14: BrainsGate
INNOVATION Elron’s holding: 30% Founded: 2000 Treatment of ischemic stroke in a 24 hour window post symptom onset First investment: 2005 Total investment: $70m ($21m Current treatment (tPA protein) is approved for use during by Elron) a 3-4.5 hour window only Main partners: Johnson & Johnson, Boston
Slide 15: BrainsGate clinical trial
INNOVATION $95b is the estimated cost of stroke in the U.S. projected for In 2010 BrainsGate completed a clinical trial on 300 patients 2015 whose results strengthened the assessment that the 15m people suffer a stroke treatment is effective and safe worldwide each year 5% of stroke victims receive
Slide 16: BrainsGate mechanism of action
INNOVATION Restores blood flow to the Electrical stimulation induces blocked blood vessel dilation of cerebral blood vessels, and thus augments Due to the temporary blood flow interruption in blood flow, the blood vessel becomes The stimulation avoids brittle manipulating the blood clot, and treats
Slide 17: Pocared
INNOVATION Elron’s holding: 41% Founded: 2004 Real-time and automated system for infectious disease diagnosis, based on optical technology First investment: 2007 Total investment: $68m ($29m Designed for use by major microbiological laboratories by Elron) and hospitals Main partner: SCP Vitalife Mea
Slide 18: Pocared trial
INNOVATION 125m urine cultures are performed each year in the U.S. The system is CE certified since December 2011 70% of urine cultures return negative, after antibiotics have Pocared is conducting a trial at 5 of the world's leading medical been unnecessarily administered centers The trial’s purpos
Slide 19: Pocared system
INNOVATION a complete cartridge transfer carousel to urine sample cartridge carousel optical analyzer module results… 19
Slide 20: Notal Vision
INNOVATION Elron’s holding: 22% Founded: 2000 Remote monitoring of patients at risk of vision loss from AMD First investment: 2003 Total investment: $32m ($7.5m AMD destroys sharp, central vision, necessary for by Elron) common tasks such as facial recognition, driving, reading, Main partners: Everg
Slide 21: Notal Vision study
INNOVATION AMD is a leading cause of severe vision loss and blindness in The National Eye Institute invited Notal Vision to conduct a adults over age 60, and affects study of 1500 patients in 44 major U.S. retinal centers ~9.1m individuals in the U.S. Due to positive clinical results at the interim
Slide 22: ForeseeHome
INNOVATION The device detects even The Data Monitoring Center small changes in vision alerts patient & doctor 22 Notal Vision website: http://www.notalvision.com/
Slide 23: CartiHeal
INNOVATION Elron’s holding: 32% Founded: 2009 Implant for repairing cartilage and osteochondral defects in loadbearing joints, such as the knee First investment: 2012 Total investment: $13m ($5m by The implant has a unique structure, comprising of marine Elron) aragonite with biological modification
Slide 24: CartiHeal clinical trials
INNOVATION ~35m people in the U.S. alone suffer from cartilage injuries The implant is CE certified since April 2011 The cartilage repair market is expected to exceed $3b Preclinical studies demonstrated cartilage & bone regeneration at the implantation site The company is conducting a series of cli
Slide 25: CartiHeal results
INNOVATION 1 day post-op: 6 months post-op: 25
Slide 26: Kyma
INNOVATION Elron’s holding: 29% Founded: 2008 A system for continuous remote monitoring of CHF patients First investment: 2009 Total investment: $11.5m The system is built around a non-invasive and very small ($9.5m by RDC) sensor attached to the patient Main partner: Ganot Based on unique radar tec
Slide 27: Kyma trials
INNOVATION ~4.3m people suffer from CHF in the U.S. The device is CE certified for hospital use since October 2013 $24b is the estimated cost of CHF in the U.S. projected for The company is conducting a series of clinical trials in diverse 2015 treatment settings (ICUs, CHF units, nursing homes, & o
Slide 28: Keeping Track of You...
ELRON. INNOVATION KEEPING TRACK OF YOU... 28
Slide 29: Promise
PROMISE 2013-2015: significant 380 patient PMA patients recruitment developments anticipated in recruited completed submission Elron’s companies 15,000 UTI FDA decision 4500 UTI samples on UTI , FDA samples collected, FDA submission collected submission for 2nd application NEI study 1000 paying st
Slide 30: Value
VALUE Investments in companies Holdings in companies 1 Book value at Amount invested amount to ~$100m, while their Dec. 31, 2013 ($m) ($m) book value amounts to ~$36m Associates and consolidated companies 2: Pocared 2.1 28.9 Book value of associates & BrainsGate 1.0 21.2 consolidated companies:
Slide 31: Opportunity
OPPORTUNITY Proven expertise in identifying opportunities, building technology leaders, and exiting holdings Operational holding company with the flexibility to provide its group companies with long-term commitment Strategic partnership with Rafael – access to state-of-the- art military technologies
Slide 32: Legacy
LEGACY “ Looking ahead, Elron should always understand that the ever evolving changes in the high tech industry will be exponential, and therefore, success will depend on choosing the right niches in the world market in which it can maintain and improve its relative advantage. Mr. Uzia Galil, Elron’
Slide 33: Elron. Opportunity. Thank you.
ELRON. OPPORTUNITY Thank you.