Episurf Medical AB Class B · OMXSTO:EPIS_B
Episurf Medical AB Class B — Shareholder Meeting (May 2016)
19 slides from Episurf Medical AB Class B's shareholder meeting presentation, May 24, 2016
Slide 1: The Journey to Mainstream
The Journey to Mainstream Rosemary Cunningham Thomas, CEO Episurf Medical AB Annual General Meeting 2016 May 24th 2016
Slide 2: Episurf Medical's goals and objectives
Episurf Medical’s goals and objectives are to mainstream patient-specific treatment options as a new standard within the orthopaedic industry 2
Slide 3: Knee replacement cost the NHS £585m in 2015
Knee replacement cost the NHS £585m in 2015 • The number of knee surgical procedures being performed rising 7 % per year • Treatment for knee arthritis accounts for 1 million GP appointments each year • 60% adults aged 35 to 60 now experience knee problems of some kind and >50% had suffered knee pai
Slide 4: Market Trends Converging to create a Unique Market Opportunity
Market Trends Converging to create a Unique Market Opportunity Demand is coming from an Ageing and Obese population along with a Younger Patient who seeks to remain healthy and active 4
Slide 5: Disruptive Med Tech Innovation will provide the solution
Disruptive Med Tech Innovation will provide the solution Episurf is part of a new connected healthcare ecosystem that will manage the demand for unique & cost effective treatments 5
Slide 6: The treatment options and the players in relation to technology adoption
The treatment options and the players in relation to technology adoption Individuals suffering from knee joint injuries are referred to one of several existing treatment methods, however all suffering from one or several weaknesses or limitations Existing treatment methods based on Often referred to
Slide 7: Episurf Medical is introducing a novel technology to a previously underserved patient group
Episurf Medical is introducing a novel technology to a previously underserved patient group 7
Slide 8: Episurf has an impressive track record
Episurf has an impressive track record… • When reviewing Episurf, it was Years of business obvious that the company performed very well Cumulative cash burn (USD m) – Cash burn is significantly lower relative to comparable companies – Episurf time to 1st CE-marked product < 3 years vs. 5.9 years mar
Slide 9: Advancing on the Technology Adoption Curve
Advancing on the Technology Adoption Curve What we achieve during the early adoption phase will give us access to 85% of the remaining market Innovators Early adopters Early majority Late Majority Laggards 2,5% 13,5% 34% 34% 16% Episurf Medical is exactly at the correct point of advancing through th
Slide 10: Advancing on the technology adoption curve
Advancing on the technology adoption curve Investment to date to has taken the company from early innovation to early adoption First implant in human December 2012 First sales people started Q3 2014 » Clinical evidence – 1 year data » Credibility with early adopters » Generating early revenue 120 »
Slide 11: Evidence of early adoption
Evidence of early adoption… Episurf’s Key Metrics Cumulative number of implants Number of implants and time since surgery > 3,0 yrs 4 96 > 2,5 yrs 86 9 73 > 2,0 yrs 13 > 1,5 yrs 21 > 1,0 yrs 42 > 0,5 yrs 69 Perform… 96 0 20 40 60 80 100 Q4 2015 Q1 2016 May 18th 2016 Damage marking requests Damage ma
Slide 12: Achieved by a small sales force
…achieved by a small sales force Today Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Sales director #1 #1 #2 #2 #3 #3 #4 #4 Preliminary sales work (1,2 FTE) #5 #5 #6 #6 #7 #7 #8 #8 #9 #9 #10 #10 12
Slide 13: Next step: Progress to the early majority
Next step: Progress to the early majority… The Early Majority represent new surgeons, prospective Episealer patients and healthcare payors who seek a more practical, efficient and cost effective solution Innovators Early adopters Early majority Late Majority Laggards 2,5% 13,5% 34% 34% 16% Next leve
Slide 14: From Early Adopters to Early Majority
From Early Adopters to Early Majority Stakeholders in the Early Majority – Surgeons, Patients and Healthcare Payors » Consistent commercial execution working with targeted knee cartilage specialists » Work with Episurf’s Clinical Advisory Board to facilitate peer to peer adoption, professional educa
Slide 15: A global strategy
A global strategy Episurf is currently executing its European commercialization strategy while also preparing a US entry strategy The US Europe • Regulatory analysis pending • 96 implants across Europe • 510(k) vs PMA • Direct sales force focusing on Germany, the UK, Belgium and the Nordics • Market
Slide 16: The US Strategy in Summary
The US Strategy in Summary The US market is the world’s largest orthopaedic device market with 3,7 million knee arthroscopies and 1,1 million knee replacements being done annually Key strategic activities • Significant increase in the number of individuals with serious knee problems – Up to 6 millio
Slide 17: Financial considerations
Financial considerations When looking at our finances related to improving gross margin and the journey to break-even, we need to consider the following Revenue driving initiatives Cost reduction/investment initiatives • Partnership deals • A strategic manufacturing and logistic review – MRI manufac
Slide 18: Summary - Why invest in Episurf?
Summary - Why invest in Episurf? We have long term confidence in the business opportunity. Our ambition is to achieve 10% market penetration of the treatment market for Grade III-IV cartilage lesions. • Episurf is at the forefront of the trend of patient specificity in med-tech • Episurf has a uniqu
Slide 19: Thank you!
Thank you! The future The status quo 19