Neuronetics, Inc. · NASDAQ:STIM
Neuronetics — Investor Presentation (January 2021)
29 slides from Neuronetics's investor presentation, Jan 28, 2021
Slide 1: Neuronetics, Inc. Company Presentation January 2021
Neuronetics, Inc. NASDAQ: STIM Company Presentation January 2021 Exhibit 99.1
Slide 2: Disclaimers
Disclaimers This presentation has been prepared solely for use at this meeting. The material is given in conjunction with an oral presentation and should not be taken out of context. Unless the context requires otherwise, references to “Neuronetics” “the company,” “we,” “us” and “our,” refer to Neur
Slide 3: Presenters
Presenters 33 years of experience: 30 years of experience:
Slide 4: Neuronetics Snapshot
NeuroStar Advanced Therapy — Transcranial Magnetic Stimulation (TMS) Focused on psychiatric indications Current Indication: Major Depressive Disorder (MDD) in adults failed to receive satisfactory improvement from prior antidepressant medication in the current episode Safe, effective and non-invasiv
Slide 5: Investment Highlights
Investment Highlights Clinically Relevant Outcomes for Patients with MDD Significant Clinical Study Compendium Large Direct Sales and Customer Support Team — Difficult to Replicate Broad US Reimbursement Favorable Psychiatrist Economics $9.6B Targeted Annual TAM Among Psychiatrist Practices Potentia
Slide 6: Major Depressive Disorder Disease Overview
Major Depressive Disorder Disease Overview Characterized by depressed mood or loss of interest in pleasure for at least two weeks Periods of remission and relapse over a lifetime 300 million people worldwide living with depression 13 million adults with MDD in the US 3.0% global incidence rate Disea
Slide 7: Transcranial Magnetic Stimulation
TMS uses pulsed, MRI-strength magnetic field Induces electrical currents to stimulate specific areas of brain associated with mood Stimulation triggers a cascading electro-chemical effect Changes connections in brain structures to improve neuronal circuit activity and mood Stimulated neurons release
Slide 8: Limitations of Antidepressant Medications
Trivedi MH, et al. (2006). Evaluation of Outcomes with Citalopram for Depression Using Measurement-Based Care in Sequenced Treatment Alternatives to Relative Depression (“STAR*D“) Implications for Clinical Practice. Am J Psychiatry, 163(1):28-40. Limitations of Antidepressant Medications Approximate
Slide 9: Clinically Proven Solution
Clinically Proven Solution 1 in 2 patients respond 1 in 3 patients achieve remission Long-term durability has been demonstrated with response and remission rates among users Acute Phase in Real-World Clinical Settings Study1 Long-term Durability in Real-World Clinical Settings Study2 Carpenter L.L,
Slide 10: Clinically Proven Solution: Two Randomized Controlled Trials
Clinically Proven Solution Two Randomized Controlled Trials Unmatched Body of TMS Clinical Data Sponsored largest RCT, sham-controlled TMS trial ever conducted Enrolled 325 adult patients with treatment resistant MDD Primary Efficacy Endpoint: MADRS at 4 weeks (P=0.057); not achieved but clinically
Slide 11: MDD Patient Continuum of Care
Electroconvulsive Therapy* MDD Patient Continuum of Care First-Line Treatment Attempts SSRIs SNRIs Next Attempt Antidepressant Switch Other SSRIs or SNRIs First-generation antidepressant medications TMS Non-invasive Non-systemic Augmentation Strategies Atypical Antipsychotic Augmentation Next Attemp
Slide 12: Our Solution: NeuroStar Advanced Therapy
Efficient Non-invasive and no anesthesia MT Assist Treatment time as low as 19 minutes TrakStar stores patient’s treatment data Our Solution: NeuroStar Advanced Therapy Precise Proprietary SenStar Connect contact sensing SenStar magnetic field detector Proprietary, laser-aligned, six-point coordinat
Slide 13: Payors and Reimbursement
Payors and Reimbursement Reimbursement Covers MT assist and treatment sessions CPT Code Reimbursement 90867 MT Assist and Treatment Session 90868 Treatment Session 90869 Subsequent MT Assist and Treatment Session Payor Coverage Estimated to cover 95% of total private payor covered lives in the US 65
Slide 14: Physician Practice Economics
Physician Practice Economics NeuroStar Advanced Therapy has potential to enhance psychiatrist practice economics Proven return on investment for psychiatrists Psychiatrist can generate ~$7,500 to $10,000 of revenue per patient per course of treatment on average Can recoup capital investment by treat
Slide 15: Barriers to Entry
Barriers to Entry Barriers to Market Entry Proprietary technology with a broad intellectual property portfolio Large, direct sales force Comprehensive customer support and practice development resources Significant body of clinical data and key opinion leader support A market leader in TMS therapy b
Slide 16: Japan Growth Opportunity
Japan Growth Opportunity Primary international focus is on Japan Third largest healthcare spend globally Single payor healthcare system Shonin Approval: September 2017 Exclusive distribution agreement with Teijin Pharma signed October 2017 Teijin to promote sales of systems and treatment sessions Mi
Slide 17: Patent Portfolio
Patent Portfolio Issued or allowed patents: 39 US / 52 OUS Pending patent applications: 6 US / 9 OUS Intellectual Property Key Portfolio Coverage Areas Contact Sensing Multiple, US patent expires 2024-2027 MT Assist US patent expires 2024 Iron Core Magnet Multiple, US patents expire 2025–2027 Signif
Slide 18: Management and Board of Directors
Management and Board of Directors Keith Sullivan President and CEO Janie Bates VP, Marketing Steve Furlong VP, CFO Sara Grubbs VP, Sales Greg Harper VP, Product Development & Operations Andrew Macan SVP, General Counsel, Chief Compliance Officer, and Corporate Secretary Anthony Pui VP, International
Slide 19: Financial Overview
Financial Overview
Slide 20: Expected Preliminary Estimated Q4 and Full Year 2020 Results
Expected Preliminary Estimated Q4 and Full Year 2020 Results (Unaudited) (1) These preliminary, unaudited financial results are subject to the close of the quarter and year, completion of our quarter-end and year-end closing procedures and further financial review. See “Forward-Looking Statements &
Slide 21: Annual Revenue
Annual Revenue ($ in millions) Annual Revenue by Geography Annual Product Revenue (US) +31% +29% +44% +24% +19% +19% +18% +23% +17% +3% $60.8
Slide 22: Worldwide Quarterly Revenue
Worldwide Quarterly Revenue ($ in millions) Q3 2020 Revenue $12.4M versus $16.0M in Q3 2019
Slide 23: Results of Operations
Results of Operations Three Months Ended September 30, ($ in thousands) 2019 2020 Revenues $16,000 $12,448 YOY Growth -22% Gross Profit 11,808 9,791 Gross Margin 74% 79% Operating Expenses: Sales and Marketing % of Revenues 10,362 65% 6,053 49% General and Administrative % of Revenues 4,285 27% 4,21
Slide 24: Financial Position
Financial Position ($ in thousands) As of September 30, 2020 Cash and Cash Equivalents $50,719 Other Balance Sheet Assets $27,620 Total Assets $78,339 Current Debt, net $34,542 Convertible Preferred Stock Warrant Liability $0 Convertible Preferred Stock $0 Accumulated Deficit ($273,883) Total Stockh
Slide 25: Supplemental Information
Supplemental Information
Slide 26: NeuroStar Unit Sales and Installed Base
NeuroStar Unit Sales and Installed Base
Slide 27: NeuroStar Revenue
NeuroStar Revenue ‘NeuroStar Revenue Total US. Neurostar Revere (50005) US. NewrostarCapttal Revenue ($0005) (4) vers vers "29% 21% 2s | ase 39% 52% US. Newrostar other (S000) (6) vers 28 | #@Neuronetics 7
Slide 28: NeuroStar Treatment Sessions
NeuroStar Treatment Sessions
Slide 29: Neuronetics contact details
3222 Phoenixville Pike Malvern, PA 19355 www.neurostar.com 610.640.4202