Zomedica Corp. · OTC:ZOMDF
Zomedica — LATEC Conference 2023
22 slides from Zomedica's conference presentation, Feb 16, 2023
Slide 1: Pawsitive Alpha from Animal Health Sector
PAWSITIVE ALPHA FROM ANIMAL HEALTH SECTOR Tails from the furry side of biotech Larry Heaton Chief Executive Officer LATEC Conference | February 16, 2023 © 2023 Zomedica Corp. and Zomedica Inc. All rights reserved.
Slide 2: Speaker Biography
SPEAKER BIOGRAPHY Larry Heaton, CEO Zomedica • 35+ years of executive leadership and operations experience in human health Biotech/Life Sciences • Assumed leadership of Zomedica on October 1, 2021 • Executed five acquisitions/license agreements over last 16 months • Prior, President, Chief Executive
Slide 3: Animal Health Segment Differentiators
Animal Health Segment Differentiators => Attractive Investment Animal Health is propelled by technology, with less regulatory burden and committed customers • Like human pharma and biotech sectors – Animal Health is driven to improve patient care • Animal health enjoys lower regulatory burden which
Slide 4: For Pet Owners, Their Pets Are No Longer Just Companions
FOR PET OWNERS, THEIR PETS ARE NO LONGER JUST COMPANIONS… THEY’RE PART OF THE FAMILY The percentage of pet owners that “agree” or “strongly agree” with the following statements: 95% “My pet is part of my family” 92% “Nothing would ever convince me to give up my pet” SOURCE: The Human Animal Bond Ins
Slide 5: Pet Care Spending on the Rise
PET CARE SPENDING ON THE RISE PET SPENDING AS A PERCENTAGE OF TOTAL HOUSEHOLD SPENDING (BY INCOME SEGMENT) Pet care industry projected to grow at an 8% CAGR through 2030, one of the strongest growth rates across retail. 2.0% 1.9% 1.6% 1.2% 1.1% Morgan Stanley forecasts household spending per pet to
Slide 6: Pet Care Industry Resiliance
PET CARE INDUSTRY RESILIANCE “If you look at animal health historically, it has proven to be recession resistant” According to a 2021 IDEXX Pet Parent Survey, when Wetteny Joseph, CFO of Zoetis (NYSE: ZTS) household income declines, owners cover pet expenses by reducing spending on: “On the whole, t
Slide 7: Multiple Growth Drivers Provide Strong Industry Tailwinds
MULTIPLE GROWTH DRIVERS PROVIDE STRONG INDUSTRY TAILWINDS The pet care industry is projected to reach $236 billion by 2030, driven by: Increasing Technological Vet Practice Humanization Innovations Modernizations of Pets SOURCE: Grandview Research, Pet Care Market Size, Share & Trends Analysis Repor
Slide 8: The Pandemic Sparked a Wave of Pet Adoptions in the US
THE PANDEMIC SPARKED A WAVE OF PET ADOPTIONS IN THE US MORE THAN 23 MILLION AMERICAN HOUSEHOLDS ADOPTED A PET DURING THE PANDEMIC.1 Percentage of US Dog-Owning Households with 1 or more Dogs Under 2 Years Old2 (as of December 2021) 27% 27% 19% 6 months to 2years 12% 13% 6% 6% 1% Less than 6 months G
Slide 9: Increased Pet Ownership Creates Sustainable Industry Growth as Pets Age
INCREASED PET OWNERSHIP CREATES SUSTAINABLE INDUSTRY GROWTH AS PETS AGE AVERAGE ANNUAL INCREASE (NET) AVERAGE 2021 CLINICAL PRACTICE IN PET POPULATION IN US REVENUE PER ACTIVE PATIENT (by age segment) 5% $630 $650 Other Revenue $485 $445 $355 1% $120 $140 Diagnostics $45 $60 $80 2010 to 2019 2020 an
Slide 10: Global Veterinary Services Market Valued at $97.3 Billion in 2020
GLOBAL VETERINARY SERVICES MARKET VALUED AT $97.3 BILLION IN 2020* Veterinary services in the US are projected to surpass $62.2 billion in $62.2B 2023.** Therapeutic devices and point of care diagnostics are a key part of the Vet Services segment. SOURCE: * Grandview Research Veterinary Services Mar
Slide 11: Animal Health Growth Driven by Same Technological Advances of Medtech and Biotech
ANIMAL HEALTH GROWTH DRIVEN BY SAME TECHNOLOGICAL ADVANCES OF OTHER MEDTECH AND BIOTECH INDUSTRIES • Faster pace of innovation • Lower regulatory hurdles = lower cost to develop • High shareholder returns KEY OPPORTUNITIES: In-clinic Digital monitoring Predictive Diagnostic and surveillance technolo
Slide 12: High-Growth Diagnostics Driving Expanding Clinic Revenues
HIGH-GROWTH DIAGNOSTICS DRIVING EXPANDING CLINIC REVENUES DIAGNOSTICS GREW AT A 10.5% CAGR FROM 2015-2021 VS. OVERALL PRACTICE CAGR OF 8% Average Clinic Revenue by Practice Segment (US) $1.8M Other Products $1.2M $1.0M Pharma & Vaccines Medical Services (excl. diagnostics) Diagnostics 2010 2015 2021
Slide 13: Multiple Factors Driving Diagnostics Revenue Growth
MULTIPLE FACTORS DRIVING DIAGNOSTICS REVENUE GROWTH Companion animal diagnostics market projected to reach $3.8 billion by 2027, up from $2.4 billion in 2022, growing at a 9.6% CAGR during the five-year period. 22.3% GROWTH IN DIAGNOSTICS DRIVEN BY: Increased Higher Utilization Testing of Diagnostic
Slide 14: Public Animal Health Diagnostic Leaders
Public Animal Health Diagnostic Leaders Pawsitively Improving Patient Care & Investor Returns TTM TTM TTM 3-Year Market Cash(4) to Company Description Revenue Revenue Gross Stock Cap. Market ($M)(1) Change(1) Margin(1) Return(2) ($M)(1) Cap. Large, global animal health company Zoetis Focus on me
Slide 15: Zomedica Mission & Vision
Zomedica Mission & Vision Zomedica is bringing innovative PulseVet® Shock Wave System diagnostic and therapeutic technology to Veterinarians to Assisi LOOP ® improve the quality of care for the pet, the satisfaction of the pet parent, and the workflow, cash flow and profitability of the practice. Ve
Slide 16: Zomedica Growth by Acquisition
Zomedica Growth by Acquisition Total Annual Cumulative Y/Y Deal Date Type Cost Addressable Annual Growth (thru Market (TAM) TAM 9/30/22) TRUFORMA® March 2021 Launch $775M $0.78B +365% Stock PulseVet® October 2021 $71M $150M $0.93B +35% acquisition Launched Convertible VetGuardian™ May 2022 $1M $40M
Slide 17: Expanding Product Portfolio
Expanding Product Portfolio PulseVet® Shock Wave System Clinically Proven Global Leader TRUFORMA® Reference Lab Accuracy Drive assay utilization with Point of Care Expand Equine Indications Convenience Launch into for use to grow utilization Expand installed small animal Expand assay base of clinica
Slide 18: Total Addressable Market – United States
Total Addressable Market – United States 30,000 Small Animal Practices 4,450 Equine and Mixed Practices(1) Annual Recurring Revenue Capital Equipment Revenue (Total Addressable Market) (Total Addressable Market) PulseVet $1.4B $150M TRUFORMA TRUVIEW PulseVet VetGuardian $775M $1.3B $1.0B $450M Assis
Slide 19: PulseVet – What the Vet Sees – Seeing is Believing
PulseVet® – What the Vet sees – Seeing is Believing! BEFORE AFTER PULSEVET QUICK PULSEVET T R E AT M E N T CLINIC VISIT T R E AT M E N T Total Available Market - Capital (US): $1B Total Available Market – Annual Consumables (US): $150M 19
Slide 20: Zomedica Net Revenue Up 51%, Q4-21 to Q4-22
Zomedica net revenue up 51%, Q4-21 to Q4-22, driven by organic PulseVet and TRUFORMA growth and the Assisi asset purchase; FY2022 net revenue totaled ~$18.6M Quarterly Net Revenue by Product Line, Q4-2021 through Q4-2022(1) Look Ahead – Select Growth Levers (Dollars in thousands) Enterprise: 7,000 •
Slide 21: Investment Highlights
Investment Highlights Attractive Industry: Humanization of pets drives recession resistant market growth. Differentiated Solutions: Innovative technology to improve care, practice workflow & customer economics Experienced Management Team: Start-up mentality focused on flawless execution Manufacturin
Slide 22: Zomedica is bringing innovative diagnostic and therapeutic technology to Veterinarians
Zomedica is bringing innovative diagnostic and therapeutic technology to Veterinarians to improve the quality of care for the pet, the satisfaction of the pet parent, and the workflow, cash flow and profitability of the practice. 100 Phoenix Drive Suite 125 Ann Arbor, MI 48108 info@zomedica.com inve