Photocure ASA · OSL:PHO
Photocure ASA — Q2 2019 Earnings Presentation
27 slides from Photocure ASA's earnings presentation, Aug 7, 2019
Slide 1: Results for Second Quarter and First Half Year 2019
PHOTOCURE ASA RESULTS FOR SECOND QUARTER AND FIRST HALF YEAR 2019 7 August 2019 Daniel Schneider, President and CEO Erik Dahl, CFO
Slide 2: Disclaimer
DISCLAIMER By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Photocure (the “Company”) fo
Slide 3: Photocure Strategy — Four Steps
PHOTOCURE STRATEGY — FOUR STEPS TO BECOME A TRANSFORMATIVE, MULTI-PRODUCT, BLADDER CANCER COMPANY TRANSFORM ACQUIRE Build pipeline - partner/acquisitions EXPAND Expand portfolio of bladder cancer/bladder assets ACCELERATE Surveillance market New geographies Grow Cysview®/Hexvix® 3
Slide 4: Delivering on Key 2019 Objectives
DELIVERING ON KEY 2019 OBJECTIVES Significant growth of Q2 revenue growth in US$ 41%, in-market volume increase in Q2 of 34% Cysview® in US TURBT market Accelerate Cysview® in US flexible 45% growth YOY in installed blue light enabled cystoscopes in market cystoscopy > Total of 188 cystoscopes inclu
Slide 5: Accelerated Momentum: Consecutive Quarters of Record Revenues in US
ACCELERATED MOMENTUM 6 CONSECUTIVE QUARTERS OF RECORD REVENUES IN US US (1000 NOK) 30000 25000 20000 15000 10000 5000 0 5 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
Slide 6: Accelerated Momentum: Installed Base of Cystoscopes in the US
ACCELERATED MOMENTUM INSTALLED BASE OF CYSTOSCOPES IN THE US 200 188 180 171 157 160 140 120 104 100 83 80 65 60 51 40 36 25 20 2012 2013 2014 2015 2016 2017 2018 Q1 2019 Q2 2019 0
Slide 7: The Investment Made Will Deliver Returns
THE INVESTMENT MADE WILL DELIVER RETURNS Strategy – Target Key Hospitals in the 30 largest MSAs in the US – 2018/19 – We have built the Commercial Foundation • Sales team focused on top 700+ centers that influence bladder cancer care in their regions • Team is composed of 27 Surgical Sales Executive
Slide 8: Hexvix/Cysview Positioning and Sales Process
Hexvix®/Cysview® Positioning and Sales Process
Slide 9: Non-Muscle Invasive Bladder Cancer: Common, High Recurrence, High Disease Burden
NON-MUSCLE INVASIVE BLADDER CANCER IS ONE OF THE MOST COMMON CANCERS WITH SIGNIFICANT RECURRENCE RATE AND HIGH DISEASE BURDEN ~650K ~2.2M surgical procedures surveillance cystoscopies annually in USA and EU annually in USA and EU More than 60% 10% – 30% Tumor as seen through disease recurrence a cys
Slide 10: Hexvix/Cysview Addresses the Need for Improved Detection and Management of Bladder Cancer
HEXVIX®/CYSVIEW® ADDRESSES THE NEED FOR IMPROVED DETECTION AND MANAGEMENT OF BLADDER CANCER Clinic/Office Diagnostic cystoscopy flexible scope ~650k Operating procedures room EU/USA TURBT rigid scope ~2,2 mill Clinic/Office Symptoms procedures EU/USA Surveillance cystoscopy flexible scope Diagram ba
Slide 11: Blue Light Cystoscopy with Hexvix/Cysview
BLUE LIGHT CYSTOSCOPY WITH HEXVIX®/CYSVIEW®? A TRANSFORMATIVE SOLUTION TO IMPROVE THE LIVES OF PATIENTS WITH BLADDER CANCER Key benefits • Improved Patient outcomes (diagnostic accuracy + surgical results) • Significant reduction of disease recurrence • Reduction in disease progression • Improved co
Slide 12: Blue Light Cystoscopy with Hexvix/Cysview
Key feature BLUE LIGHT CYSTOSCOPY WITH HEXVIX®/CYSVIEW® Better visual contrast between benign and malignant cells Blue Light Cystoscopy (BLC™) with Hexvix/Cysview is a drug and device combination for better detection and management of NMIBC. Hexvix/Cysview is a Hexvix/Cysview is used with pharmaceut
Slide 13: Long Sales Cycle: Complex Sales to Complex Organizations
LONG SALES CYCLE: COMPLEX SALES TO COMPLEX ORGANIZATIONS Ongoing service & Expand use support Start up – team, Decision & training & capital practicalities Evaluation equipment period purchase Hospital economic Champion and clinical urologist review Target key process accounts 13
Slide 14: Positioned for Growth
Positioned for growth
Slide 15: Supportive Environment & Increasing Awareness
SUPPORTIVE ENVIRONMENT & INCREASING AWARENESS FOR BECOMING THE STANDARD OF CARE FOR THE DETECTION AND MANAGEMENT OF BLADDER CANCER • Inclusion in Bladder Cancer treatment guidelines BLC™ with Hexvix® /Cysview® is strongly recommended by US, European and national guidelines as well as expert panels.
Slide 16: Expert Panel New Consensus Recommendations for Use of Hexvix/Cysview
AN EXPERT PANEL NEW CONSENSUS RECOMMENDATIONS FOR USE OF HEXVIX®/CYSVIEW® ‒ FOCUS ON SURVEILLANCE Regularly in Initial surveillance Biopsy and TURBT (OR) surveillance @ 3 months Fulguration first 2 years High risk patients Intermediate risk patients * Low risk patients Frequency in Rigid Flex survei
Slide 17: Hexvix/Cysview – Key Enablers in Place and Ready for Growth
HEXVIX®/CYSVIEW® – KEY ENABLERS IN PLACE AND READY FOR GROWTH Penetration Key success factors 100% Position in the life cycle Approval – surgical & surveillance 75% Denmark Acceptance – major & local guidelines 50% Access – Permanent and favorable Nordic reimbursement “Activated” Awareness – Patient
Slide 18: Cevira License Agreement
Cevira® License Agreement
Slide 19: Cevira: License Agreement with Asieris
CEVIRA®: LICENSE AGREEMENT WITH ASIERIS ASIERIS MEDITECH CO., • Asieris is a subsidiary of the China-based • Its leading drug candidate, an oral drug for Ltd. Jiangsu Yahong Meditech Co., Ltd., a treating non-muscle invasive bladder specialty pharma company fully committed cancer, is in a registrati
Slide 20: Cevira: Terms of License Agreement with Asieris
CEVIRA®: TERMS OF LICENSE AGREEMENT WITH ASIERIS TERMS OF THE LICENSING AGREEMENT* • Under the License Agreement, Photocure will receive a total signing fee of USD 5 million within 6 months after signing. • Approval of the initial indication will result in USD 18 million in China and USD 36 million
Slide 21: Financials
Financials — ae
Slide 22: Segment Performance Second Quarter 2019
SEGMENT PERFORMANCE SECOND QUARTER 2019 Commercial Franchise Amounts in NOK million Q2 ’19 Q2 ‘18 Change YTD ‘19 YTD ‘18 Change • US: Strong revenue growth, Q2 41% and YTD Commercial Franchise 46% in USD Nordic revenue 10.7 10.8 -1% 23.8 22.9 4% – Installed base of rigid and flex BLC 188 at quarter
Slide 23: Consolidated Income Statement Second Quarter 2019
CONSOLIDATED INCOME STATEMENT SECOND QUARTER 2019 • Operating expenses, increase driven by Amounts in NOK million Q2 ‘19 Q2 ‘18 Change YTD ‘19 YTD ‘18 Change – Planned investments in US commercial Hexvix/Cysview revenue 52.1 42.4 23% 103.3 83.1 24% operations (sales & marketing) Other revenue 0.9 3.
Slide 24: Cash Flow Second Quarter 2019
CASH FLOW SECOND QUARTER 2019 • Cash flow from operations Q2 NOK -4.0 Amounts in NOK million Q2 ‘19 Q2 ‘18 YTD ’19 YTD ‘18 million, improvement of NOK 7.5 million from Operations cash flow -4.0 -11.5 -19.7 -30.0 Q2 last year. YTD improvement of NOK 10.3 Earnings before tax -6.7 -15.6 -12.6 -23.1 mil
Slide 25: Balance Sheet 30 June 2019
BALANCE SHEET 30 JUNE 2019 30.06 31.12 • Non current assets Amounts in NOK million 2019 2018 Non current assets 82.4 77.8 – Investments of NOK 18.6 million in tangible and intangible assets is driven by investments in Cysview phase 3 project Investments 18.6 24.6 – Deferred tax asset of NOK 55.0 mil
Slide 26: Summary and Outlook
Summary and Outlook — ——
Slide 27: Photocure Strategy — Four Steps
PHOTOCURE STRATEGY — FOUR STEPS TO BECOME A TRANSFORMATIVE, MULTI-PRODUCT, BLADDER CANCER COMPANY TRANSFORM ACQUIRE Build pipeline - partner/acquisitions EXPAND Expand portfolio of bladder cancer/bladder assets ACCELERATE Surveillance market New geographies 2020 revenue outlook of 20-25M$ in the US