Arcticzymes Technologies Asa · OSL:AZT
Arcticzymes Technologies Asa — Q2 2023 Earnings Presentation
27 slides from Arcticzymes Technologies Asa's earnings presentation, 2023
Slide 1: Q2 2023 Presentation
A ArcticZymes Technologies
Slide 2: Agenda
Agenda 1 Highlights – Q2 2023 2 Business Update 3 Financials 4 Summary
Slide 3: Highlights Q2 2023
Highlights Q2 2023
Slide 4: Highlights Q2 2023
Highlights Q2 2023 Drug Master File Achieved Quarterly Hired new (DMF) filed end June Sales CEO: Michael 2023: Pre-marketing 28.2 MNOK Akoh campaign for SAN HQ GMP EBITDA Launched 1 new Performance product 6.8 MNOK 4
Slide 5: Business update
Business update
Slide 6: Successful CEO Search Process
Successful CEO Search Process • CEO resigned March 2023. Effective date Sept. 30th, 2023 • Coulter Partners hired to search • Significant interest in position • Hired Michael Akoh: Start date September 18th, 2023 Kick-off Research Contact Screen Assess Present Complete Kick-off client Target com
Slide 7: Building out the product portfolio
Building out the product portfolio Newly launched product & pending products ✓ ArcticZymes Proteinase HQ 18th April 10th August. New Product Introduction! AZtaqTM polymerase – important towards providing a ✓ AZtaq (Taq DNA pol) complete enzyme package towards MDx workflow - supported by Buffers and
Slide 8: RNA processing enzymes
RNA processing enzymes Supporting RNA therapeutics, RNA synthesis at scale Key enzyme for making RNA in industrial bioprocesses. 2023 Q4 NPI – T7 RNA polymerase. High quality grade targetted towards the manufacture of therapeutic RNA T7 RNA polymerase Convenient & efficient specific cleavage of RNA
Slide 9: Post DMF Submission
Post DMF Submission Outline of Process Filing DMF Formal FDA website lists LOA FDA conducts assessment by DMF as “Available (Letter of complete End Q2 2023 FDA for Reference” Authorisation) Technical Review • Checked for • Customers submit format & content LOA to FDA (30 days) • Authorised by AZT •
Slide 10: SAN HQ GMP temperature, pH and salt response data
100 90 Temp Response SAN HQ GMP Relative Activity (%) 80 B 70 60 Data for brochure (product support) 50 40 30 20 A Relative Activity of SAN HQ GMP vs. Salt Conc. 10 0 0 10 20 30 40 50 Temp (C) 100 AAV 90 100 pH Response 80 Relative Activity (%) C 80 70 Relative Activity (%) 60 60 40 50 20 40 0 30 6
Slide 11: Kicked off Pre-Launch activities for new Product Launch in Q4
Kicked off Pre-Launch activities for exciting new Product Launch in Q4
Slide 12: Audits
Audits ISO 13485 Recertification audit every 3rd year (last in 2021). Surveillance audit (December 2022). No critical deviations. Customer audits (Bioprocessing and Molecular Tools) Two audits in Q2 No critical deviations. Continuous cGMP competence. Continuous improves the QMS. Internal Good Manufa
Slide 13: Commercial Highlights Q2
Commercial Highlights Q2 Exhibited and generated Received standing new leads at ECCMID order for next 12 in Europe and ASGCT months from one of in North America the largest customers Launched SAN HQ GMP Pre-Launch Marketing Activities Gained 27 new customers – 18 in Biomanufacturing and Kicked-off A
Slide 14: This is what we are hearing
This is what we are hearing Voice of Customer UK “We are writing to discuss a potential downward adjustment in the current pricing structure for the US products/services we procure from your company, “As we invested heavily in the taking into consideration the recent market development of Cell & Gen
Slide 15: Financials
Financials
Slide 16: Sales per area Molecular Tools
Sales per area Sales per area Commercial 35 Molecular Tools 30 25 Molecular Tools Sales in MNOK 20 15 ✓ Quarterly sales 15.3 MNOK ✓ Accounts for 54% of total Q2 sales 10 ✓ Research and Diagnostics contribution to Q2 sales were 30% and 24%, respectively 5 ✓ Research – large orders from key customers
Slide 17: Sales per area Biomanufacturing
Sales per area Commercial Sales per area 25 Biomanufacturing 20 Biomanufacturing 15 Sales in MNOK ✓ Quarterly sales 12.9 MNOK (13% decline) 10 ✓ Accounts for 46% of total Q2 sales ✓ Challenging market conditions 5 ✓ Drug Master File (DMF) submitted for SAN HQ GMP to the U.S. FDA 0 Q1 2021 Q2 2021 Q3
Slide 18: 12 month rolling average quarterly sales
12 month rolling average quarterly sales Expect growth to pick up again, but..…. 12 month rolling average See signs of market normalising 45 Number of orders decreased from 408 in Sales development Q1 to 343 in Q2 40 Sales development ex Covid-19 27 new customers in Q2 35 Nothing fundamentally has c
Slide 19: Geographical Sales Contribution
Business Updates Commercial Geographical Sales Contribution Americas EMEA APAC 2021 39 % 48 % 13 % 2022 Americas EMEA APAC 44 % 45 % 11 % Q1 Americas EMEA AP. 2023 52 % 44 % 4% Q2 Americas EMEA AP. 2023 49 % 48 % 3% 19
Slide 20: Currency impact
USDNOK Currency impact 11,5 11 Positive contribution on P&L 10,5 Majority of revenues are in foreign currency 10 79% in USD and 21% in EURO for Q2 9,5 81% in USD and 19% in EURO for 6M 68% in USD and 31% in EURO for 2022 9 8,5 Currency effect on P&L Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ja
Slide 21: Expenses and profitability
Expenses and profitability
Slide 22: Organisation
Organisation Streamling the organisation Number of employees 70 Ambition and strategy has been to grow company organically 60 1 new position in Q2 62 employees per 30.06.2023 50 40 Administration 9% 30 R&D Business 39 % development and marketing 20 21 % 10 QA and 0 regulatory Operations 2019 2020 20
Slide 23: Profitability and expenses
Profitability and expenses Looking at improved profitability Sales & EBITDA 60 Sales EBITDA EBITDA Q2 MNOK 6.8 vs 9.5 50 6M MNOK 13.0 vs 37.4 MNOK (23.4 Covid adjusted) 40 Expenses increased by 0.6 MNOK in Q2 and 4.3 MNOK MNOK 30 for 6 M Personnel, consumables and IPR 20 Full year expenses: 105 MNOK
Slide 24: Cash flow
Cash flow + 7.3 MNOK in cash flow for Q2 Cash position 250 30 Net Cash (MNOK) 245 25 Changes in Cash (MNOK) 240 20 235 15 Changes in cash (MNOK) 230 Net Cash (MNOK) 10 225 5 220 215 - 5 210 205 - 10 200 - 15 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 24
Slide 25: Outlook
Outlook
Slide 26: Outlook 2023
Outlook 2023 Fundamental business remains strong but there are headwinds in the markets creating challenges for sales growth. Filed the Drug Master File for SAN HQ GMO with the expecteation of feedback form FDA in third quarter Capitalise on organic investments carried out in 2022 through productive
Slide 27: Thank you Q&A Session
Thank you Q&A Session arcticzymes.com
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