Neuropace, Inc. · NASDAQ:NPCE
Neuropace — Investor Presentation (January 2022)
19 slides from Neuropace's investor presentation, Jan 11, 2022
Slide 1: Personalized, data-driven treatment for epilepsy
Exhibit 99.2 Personalized, data-driven treatment for epilepsy 1 J ANUAR Y 2 0 2 2
Slide 2: Disclaimer
| 2 Disclaimer In addition to background and historical information, this presentation contains “forward-looking statements” based on NeuroPace’s current expectations, estimates, forecasts and beliefs, including preliminary unaudited fourth quarter 2021 revenue and preliminary unaudited full-year 20
Slide 3: NeuroPace Summary
| 3 NeuroPace Summary • Novel and differentiated closed loop, brain-responsive neuromodulation system with a unique data-driven window to the brain • Compelling clinical evidence demonstrating improved outcomes over time 1 • ~$26 billion U.S. addressable market • Favorable reimbursement supporting c
Slide 4: 3.4 Million People in the U.S. Living with Epilepsy
3.4 Million People in the U.S. 1 Living with Epilepsy th 2 4 Most Common Neurological Disorder in the U.S. Impact on Society 2 • ~$28 billion direct medical costs in the U.S. • 2-3X higher unemployment among 3 epilepsy patients Impact on Drug-Resistant Patients • Increased risk of mortality • Reduce
Slide 5: Significant Total U.S. Addressable Market
| 5 Significant Total U.S. Addressable Market U.S. PREVALENCE ANNUAL CORE MARKET 4 1 ~50K DRE Patients 3.4M Epilepsy Patients Admitted to CECs Annually Potential Annual DRE 2 1.2M Drug-Resistant Indication referrals to CECs Epilepsy Patients Expansion Current RNS 3 575K Adult Population Focal 5 200
Slide 6: Annual Core U.S. Market Opportunity >$1 Billion at CECs
| 6 Annual Core U.S. Market Opportunity >$1 Billion at CECs 1 ~ ~50K N 50K Ne ew w D DR RE E P Pa ati tie en nts ts A Adm dmiit tt te ed t d to o C CE EC Cs s A Annua nnualllly y 50 50 45 45 40 40 ~$1.1B Annual U.S. Core Market ~ ~24K 24K ~ ~48% 48% Excluding replacement implants and OUS 35 35 A Ad
Slide 7: RNS System: Brain-Responsive Neuromodulation System with Unique Window to the Brain
RNS System: Brain-Responsive Neuromodulation System with Unique Window to the Brain Epilepsy Treatment that is ü Personalized Physician Programmer ü Targeted ü Data-driven Implantable Device Patient Remote Monitor Patient Data Management System 7 J ANUAR Y 2 0 2 2
Slide 8: RNS System Data Allows Physicians to Actively Manage and Customize Ongoing Patient Care
RNS System Data Allows Physicians to Actively Manage | 8 and Customize Ongoing Patient Care Identify Seizure Triggers See Effects of Medications Monitor Patient Progress Electrographic seizures Added AED iEEG Data from RNS System Inform Future Surgeries Reveal Seizure Cycles 8 J ANUAR Y 2 0 2 2
Slide 9: Impressive Seizure Reductions Improve Over Time
| 9 Impressive Seizure Reductions Improve Over Time Median % Reduction in Seizures Original FDA Study Real World & FDA 1 Results: Post Approval 82% 82% Study Results: 75% 75% • Statistically 75% 75% 73% 73% 72% 72% greater seizure • 67% median 67% 67% 67% 67% 63% 63% reduction than seizure reduction
Slide 10: Exceptional Clinical Outcomes
Exceptional Clinical Outcomes MEDIAN SEIZURE FREQUENCY REDUCTION AT 1 YEAR Prospective FDA-Approved Studies in Adults with Focal Seizures* 100% VNS DBS RNS (NeuroPace) 80% 67% Programming 60% optimization 44% 44% informed by brain data 35% 40% 20% 0% 2 3 4 1 VNS Pivotal Study DBS Pivotal Study RNS P
Slide 11: The RNS System Addresses a Current Unmet Need
11 The RNS System Addresses a Current Unmet Need EPILEPSY SURGERY NEUROMODULATION COMPETITORS Irreversible & invasive Fixed anatomical target Carries neurocognitive risks Not responsive to brain activity 1 ~20% of patients are ideal candidates Lengthy stimulation cycles result in side effects No det
Slide 12: Primary Competition in CECs is Non-Intervention
Primary Competition in CECs is Non-Intervention Primary growth driver is market penetration, not market share gains Continue Meds, No intervention • CEC annual opportunity is highly underpenetrated • DRE patients in CECs rarely receive an interventional procedure Epilepsy Surgery • ~20% DRE patients
Slide 13: Commercial Strategy Focused on Capturing >$1 Billion Annual CEC Market Opportunity
Commercial Strategy Focused on Capturing | 13 >$1 Billion Annual CEC Market Opportunity Own the CEC Channel 1 2 3 4 Capture Increase Number Expand Prescriber Drive Referrals Level 4 CECs of Prescribers Utilization to CECs Small, Focused Customer Footprint Maximizes Efficiency of Commercial Investmen
Slide 14: Continued Execution Amidst Pandemic
| 14 Continued Execution Amidst Pandemic Accomplishments COVID-19 Headwinds Commercial Execution Clinical & Product Delayed scheduling or First patient enrolled in Expected initial implant postponed implant adolescent study revenue growth of ~20% procedures over 2020 IDE approval for primary Reduced
Slide 15: Strategy to Drive Long-Term Growth
| 15 Strategy to Drive Long-Term Growth Referral Marketing Expand Commercial to Epileptologists Team Outside L4 CECs Awareness Commercial Direct-to-Patient Develop Referral & Demand Digital Marketing Pathways Execution Generation Community Increase Patient Pull Outreach and Through Patient Education
Slide 16: Generalized vs. Focal Epilepsy
| 16 Generalized vs. Focal Epilepsy Focal Seizures Generalized Onset Seizures Start in one part of the brain Involve the entire brain Seizure onset localization requires inpatient video No alternative surgical options EEG monitoring Diagnosis made by routine outpatient EEG nd ~70% of RNS patients ha
Slide 17: RNS Platform Provides Significant TAM Expansion Opportunities
RNS Platform Provides Significant TAM | 17 Expansion Opportunities Focal Epilepsy, <18 yrs International Expansion 1,2 • ~$6B U.S. Opportunity st • Enrolled 1 patient in 4Q21 Generalized Epilepsy Beyond Epilepsy* 1,2 • ~$22B U.S. Opportunity • Depression • FDA Breakthrough designation • Impulse cont
Slide 18: Historical Revenue
| 18 Historical Revenue Initial Implant Revenue *$45.2M ↑ 10% $41.1M • Expected 2021 revenue growth of 20% relative to $37.0M ↑ 11% 2020 ↑ 30% $11.5 $13.1 • Initial implant growth driven primarily by $9.4 increasing utilization per implanting accounts and expansion of accounts Replacement Implant Re
Slide 19: NeuroPace Summary
| 19 NeuroPace Summary • Novel and differentiated closed loop, brain-responsive neuromodulation system with a unique data-driven window to the brain • Compelling clinical evidence demonstrating improved outcomes over time 1 • ~$26 billion U.S. addressable market • Favorable reimbursement supporting