Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (November 2016)
48 slides from Elron Ventures's investor presentation, November 2016
Slide 1: Discover. Innovation
DISCOVER. INNOVATION November 2016
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: Recent highlights and dividends since 2010
Since 2010, dividends to shareholders amounted Nitinotes is developing an endoscopic gastric sleeve to $140m procedure for the treatment of obesity Our investment: $3m; our holding: 36%* The FDA approved CartiHeal’s IDE application to OpenLegacy closed a ~$5m financing from conduct a clinical trial
Slide 4: Upcoming milestones
Complete patient Complete FDA trial Commence FDA trial Go-to-market based recruitment for FDA on UTI (urinary tract following approval of on new management’s trial infection) application IDE application work plan This slide contains forward-looking information as defined in Section 21E of the U.S. S
Slide 5: Elron
DISCOVER. ELRON
Slide 6: Years of experience identifying opportunities and building technology leaders
+ WE HAVE YEARS EXPERIENCE IDENTIFYING OPPORTUNITIES, BUILDING TECHNOLOGY LEADERS, AND EXITING HOLDINGS + WE INVEST PRIMARILY IN EARLY STAGE COMPANIES + WE RELY ON A PROVEN STRATEGY OF HANDS-ON INVOLVEMENT IN THE DAY-TO-DAY OPERATIONS OF OUR GROUP COMPANIES + OUR COMPANIES BENEFIT FROM OUR SKILL AT
Slide 7: Performance in 2016
Exit Proceeds, after tax ($m)* Gain ($m) 85.5 66.3 PERFORMANCE IN 2016: 269 17.9 114 -8.4 4.4 2.5 59 20 26 4 2010 2011 2012 2013 2014 2015 $17.5M 2010 2011 2012 2013 2014 2015 * $89M Investments ($m)* Liquid Resources at Year End ($m) 37 36 93.7 * $40M 30 76.2 18 16 40.7 13 31 21.1 15.7 2010 2011 20
Slide 8: Holdings in companies
Holdings in companies 1 Book value at Amount invested Sept. 30, 2016 ($m) ($m) Associates and consolidated companies: Pocared (61%) 17.9 59.9 BrainsGate (30%) 3.8 29.1 CartiHeal (35%) 4.4 11.7 PLYmedia (23%) - 2.5 Others 12.9 20.3 Companies presented at fair value: Notal Vision (21%) 17.9 12.3 Other
Slide 9: BrainsGate
DISCOVER. BRAINSGATE
Slide 10: BrainsGate: our investment $29M
2000 OUR INVESTMENT: 2005 $96M $29M Johnson & Johnson, Boston Scientific, Medtronic, Pitango, Cipio Partners To increase the potential number of stroke victims who receive OUR treatment from ~7% to ~80% HOLDING: Electrode used to electrically stimulate a nerve center behind the nasal cavity (the SPG
Slide 11: Interruption of blood flow to the brain
INTERRUPTION OF BLOOD FLOW TO THE BRAIN When blood flow to an area of the brain is cut off When brain cells die, functions controlled by that part of the brain (e.g. memory, muscle control) Blood flow to the brain is blocked by a Blood leaks into the brain from a blood vessel of strokes are ischemic
Slide 12: Stroke survivors left permanently disabled
Average Lifetime Cost Per Stroke Patient OF STROKE $300 K $450 K SURVIVORS ARE LEFT $130 K $60 K PERMANENTLY $10 K $25 K $25 K DISABLED mRS 0 1 2 3 4 5 6 Sources: Samsa et al, Performing Cost-Effectiveness Analysis by Integrating Randomized Trial Data with a Comprehensive Decision Model: Application
Slide 13: Ischemic penumbra at risk
Cells in the affected area die almost immediately, and cannot be salvaged However, surrounding the blockage are regions of viable tissue at risk – the ischemic penumbra – Source: American Heart Association: Temporal Trends in Patient Characteristics and Treatment With Intravenous Thrombolysis Among
Slide 14: Clot-busting drug limitations
CLOT-BUSTING DRUG • The risk of hemorrhage just 3 hours after stroke onset increases 10X • Certain patients are eligible for treatment up to 4.5 CLOT RETRIEVING DEVICES hours after symptoms first start • tPA is not approved for use after 4.5 hours from stroke onset • MOST PATIENTS DO NOT GET TO THE
Slide 15: Clot retrieving devices
CLOT-BUSTING DRUG • In the past this treatment was used in an 8-hour treatment window, but was not widely adopted due to lack of proven clinical benefit CLOT RETRIEVING DEVICES • 2015: Several large multicenter trials were published showing that treatment with endovascular treatment in a limited tim
Slide 16: Electrical stimulation of the SPG
CLOT-BUSTING DRUG • Electrical stimulation of the SPG (a nerve center behind the nasal cavity) using a miniature electrode CLOT RETRIEVING DEVICES • The electrode’s activation induces dilation of cerebral blood vessels, and augments cerebral blood flow; without affecting central blood pressure • THE
Slide 17: Implant, transmitter and GuideView
5 daily stimulation sessions, of 4 hours each The neurologist performs the implantation (which is brief and simple), with the aid of a navigation system GuideView SPG (sphenopalatine ganglion) = supplies parasympathetic innervation to the anterior cerebral circulation and some of the posterior c
Slide 18: ISS pivotal trial for U.S. marketing approval
BRAINSGATE IS CONDUCTING AN FOR U.S. MARKETING APPROVAL OF THE ISS, ON 800-1000 PATIENTS: This slide contains forward-looking information as defined in Section 21E of the U.S. Securities Exchange Act of 1934, and in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentatio
Slide 19: Pocared
DISCOVER. POCARED
Slide 20: Pocared: our investment $64M
OUR 2004 INVESTMENT: 2007 $64M $107M SCP Vitalife To promote antibiotic stewardship and significantly reduce lab costs OUR by providing a method for rapid infectious diseases diagnostics HOLDING: Rapid and automated microbiology lab system for infectious diseases diagnosis 67% 20
Slide 21: Traditional microbiology testing by culturing bacteria
Since the 19th century, microbiology testing has been done by culturing In the 21st century, developed a technology for automatically bacteria in petri dishes identifying bacteria in body fluids, by identifying their optical “fingerprint” Expensive: Requires reagents and skilled lab technicians Manu
Slide 22: Antibiotic resistance
The use of antibiotics is the single most important factor leading to antibiotic resistance around the world Antibiotics are among the most commonly prescribed drugs Up to 50% of all the antibiotics prescribed are not needed or are not optimally effective as prescribed ILLNESSES EACH DEATHS EACH YEA
Slide 23: Lab workforce and efficiency pressures
FEWER SKILLED WORKERS HIGHER THROUGHPUT GREATER EFFICIENCY The average age of the lab workforce in the Testing volumes are increasing per Economic pressures drive the need to U.S. is about , and increasing year, due to factors such as: contain costs while maintaining high tec
Slide 24: Optical fingerprint identification of micro-organisms
+ Micro-organisms are identified based on their unique optical signatures in response to different UV wavelengths + Culture-free, lab assistant operated + Gold standard accuracy + A full batch of 42 samples takes 2 hours to diagnose Filtration using “wet foam” technology to The Analyzer employs A re
Slide 25: This slide contains forward-looking information as defined in Section 21E of the U.S. Securities
This slide contains forward-looking information as defined in Section 21E of the U.S. Securities Exchange Act of 1934, and in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentation. 25
Slide 26: Pocared applications in development
(rapid AST) (streptococci) NO rapid solution currently available 41m tests in the U.S. annually clinical feasibility clinical validation, ready for regulatory studies (MRSA/MSSA) (sepsis) 8m tests in the U.S. annually 50m tests in the U.S. annually clinical feasibility clinical proof of concept Sour
Slide 27: CartiHeal
DISCOVER. CARTIHEAL
Slide 28: CartiHeal: our investment $12M
OUR 2009 INVESTMENT: 2012 $12M $30M Johnson & Johnson, Accelmed To treat joint surface lesions, and to halt the progression of knee OUR osteoarthritis and delay or prevent knee replacement HOLDING: Implant for cartilage and bone repair in the joint 35% 28
Slide 29: Cartilage lacks healing potential; no treatments halt osteoarthritis
Cartilage does not possess spontaneous healing There are no treatments that halt the progression potential of osteoarthritis (OA) During 2004-2011 people underwent a In 2010 total knee replacements were surgical procedure addressing a cartilage defect in performed the knee Persons with knee OA spend
Slide 30: Agili-C implant healing over time
3 weeks post-op 6 weeks post-op 12 weeks post-op The Agili-C is investigational in the U.S., and CE-marked in the EU. 30
Slide 31: Agili-C implanted to date
CARTIHEAL’S AGILI-C HAS BEEN IMPLANTED IN TO DATE TO TREAT TRAUMATIC AND DEGENERATIVE LESIONS IN THE KNEE, GREAT TOE & ANKLE This slide contains forward-looking information as defined in Section 21E of the U.S. Securities Exchange Act of 1934, and in Section 32A of the Israel Securities Law, 5728-19
Slide 32: Notal Vision
DISCOVER. NOTAL VISION
Slide 33: Notal Vision: our investment $12M
OUR 2000 INVESTMENT: 2002 $12M $55M Ganot, Evergreen To save the eyesight of Age-related Macular Degeneration (AMD) OUR patients HOLDING: Home-monitoring system that sends out an alert when a change for the worse is detected in the condition of dry AMD patients 21% 33
Slide 34: Age-related macular degeneration
AGE-RELATED MACULAR DEGENERATION AMD destroys sharp, central vision, necessary for common tasks such as facial recognition, driving, reading, & watching television AMD has 2 stages: “dry” (non-neovascular) and “wet” (neovascular) ~90% of blindness due to AMD is associated with the wet stage AMD PROG
Slide 35: Home-monitoring for dry AMD
It is not possible to predict who will develop wet AMD, and if so, when Dry AMD patients are monitored once or twice a year, in routine check-ups at the eye doctor Wet AMD can be treated, but due to late diagnosis, 64% of eyes end with dysfunctional vision even after treatment The device is easy t
Slide 36: AREDS2 trial with the NIH
AREDS2: Notal Vision conducted a trial in collaboration with the NIH on 1,520 patients in 44 eye clinics: 94% of patients who used the device as directed preserved functional vision at diagnosis vs only 62% of patients using other detection methods 36
Slide 37: New management and scale-up plan
Recruited new CEO – Quinton Oswald, formerly of SARCode (acquired by Shire Pharmaceuticals), Genentech, and Novartis Strategy and go-to-market analysis have been completed Scale-up work plan in place Relocated to U.S.; new management recruited This slide contains forward-looking information as defin
Slide 38: Cloudyn
DISCOVER. CLOUDYN
Slide 39: Cloudyn: our investment $6M
2011 OUR INVESTMENT: 2011 $18M $6M InfoSys, Carmel Ventures, Titanium Investments To enable enterprises to fully realize their cloud potential OUR SaaS tools for monitoring and optimizing hybrid cloud costs and HOLDING: usage 40% 39
Slide 40: Hybrid cloud visibility and cost challenges
OF HYBRID CLOUD MANAGERS HAVE LITTLE VISIBILITY DON’T HAVE A WAY TO DETERMINE WHAT THEY ARE PAYING FOR DON’T HAVE A WAY TO CONTROL THEIR CLOUD SPRAWL Migrating the proper Enterprises are struggling to Cost and performance workloads and building the build a single, accurate inefficiencies reduce clou
Slide 41: Visibility, accountability, optimization
VISIBILITY Cloudyn’s solutions enable enterprises to gain granular, real-time visibility into consumption, cost & performance of multi-platform hybrid clouds ACCOUNTABILITY Cloudyn empowers enterprise-wide cloud accountability through accurate and reliable cost allocation and chargeback OPTIMIZATION
Slide 42: Cloudyn raises $4M from Infosys
CLOUDYN RAISES $4M FROM INFOSYS rasa raises S4mitrom india’ ANTIN'OOI NWT) YT EEN 4 NOVIN TNT? nfosys Jayn nnw7 EEN oon peg nw 200497 |r o}|Ga mova nnwhinw | (25) EE EET) . yy] DNNT NY Cloudyn 01/27 NN NTN Infosys NUAD IT-A Ni / aya java nirvana Tw AINA WOT Ty AAW VA AWNN NINN ane AMaAL OVA ann gman
Slide 43: OpenLegacy
DISCOVER. OPENLEGACY
Slide 44: OpenLegacy: our investment $5.2M
OUR 2013 INVESTMENT: 2014 $5.2M $8.5M Entrepreneurs To deliver any core application as a digital service OUR Tools that rapidly extract the services and information from legacy HOLDING: systems, and automatically transform them into mobile, web, & cloud applications 45% 44
Slide 45: Legacy system challenges
Legacy systems preserve In both the public and private sectors Replacing/upgrading IT systems involves significant in the U.S. (e.g. federal agencies & and (security, compatibility, data loss) banks), maintaining legacy systems consumes three-quarters of IT budgets While replacing/upgrading le
Slide 46: OpenLegacy revolutionizes legacy modernization
OPENLEGACY REVOLUTIONIZES LEGACY MODERNIZATION, OFFERING INDEPENDENCE FROM EXPENSIVE VENDORS, AND ELIMINATING HIGH COSTS AND HIGH RISK Reduced time to A fraction of the Ensures success of market cost digital (TTM) (TCO) transformation OpenLegacy received an honorable mention by Gartner Magic Q
Slide 47: Other cyber and security holdings
Protecting Cyber intelligence Real time identity Security and Automatic enterprises from platform that verification for management tools detection and cyber phishing analyzes the dark mobile apps and for hybrid data investigation of attacks web mobile websites centers security alerts 27% by RDC 22%
Slide 48: Elron. Opportunity. Thank you.
ELRON. OPPORTUNITY Thank you.
Elron Ventures — Investor Presentation (November 2016) on 6ix