Life Healthcare Group Holdings Limited · JSE:LHC
Life Healthcare — Investor Day (September 2024)
36 slides from Life Healthcare's investor day presentation, September 2024
Slide 1: Life Molecular Imaging (LMI): Proposition and Value Articulation
Life Molecular Imaging (LMI): Proposition and Value Articulation Capital Markets Day presentation September 2024
Slide 2: Disclaimer
Disclaimer The purpose of this presentation is to introduce the recipient to Life Molecular Imaging, a subsidiary group of companies of Life Healthcare. The presentation does not purport to be all-inclusive or to contain all of the information that a prospective investor may desire. Any reproduction
Slide 3: Introduction
Introduction Peter Pieter Van der Ludger Colleen Katherine Wharton-Hood Westhuizen Dinkelborg Ruby Otero Group Chief Group CFO Managing Director US Country Head, Vice President, Head Executive Chief Operating of US Sales Officer, Americas and APAC 3
Slide 4: Contents
Contents SECTIONS SLIDES Overview of LMI 5–7 Pathway 1: Deliver our globally approved, flagship product - NeuraCeq® 8 – 21 Pathway 2: Maximise our late stage and early-stage product pipeline 22 – 27 Pathway 3: Sustain our R&D supplies and services to support pharma companies 28 – 30 Conclusion and c
Slide 5: Overview of LMI
Contents Overview of LMI 5
Slide 6: LMI is a prominent player in the global radiopharmaceutical market
LMI is a prominent player in the global radiopharmaceutical market W H AT I S L M I ? H O W I S L M I S E T - U P F O R A S U C C ES SF U L F U T U R E G R O W T H T R A J EC TO RY ? LMI develops and sells products that are used in LMI is established in the EU, UK and US, and its product the diagnos
Slide 7: LMI's ambitious growth trajectory will be achieved through three pathways
LMI’s ambitious growth trajectory will be achieved through three pathways 1 2 3 MAXIMISE PRODUCT S U S TA I N R & D S E R V I C E S DELIVER PIPELINE & SUPPLIES Flagship product that is approved and already Promising pipeline of 5 Offering R&D as a service to in the market potential new products clin
Slide 8: Pathway 1: Deliver NeuraCeq®
Contents Pathway 1: Deliver NeuraCeq® • Alzheimer’s Disease market opportunity • Overview of NeuraCeq® and its value proposition • Why LMI is well-placed to capture the market opportunity • Potential addressable market 8
Slide 9: Alzheimer's disease impacts a significant proportion of the population today
Alzheimer’s disease impacts a significant proportion of the population today 37 MILLION SUFFER FROM 1 i n 4 P EO P L E OV E R 6 5 ALZHEIMER’S DISEASE YEARS OLD1 + 65-YEAR OLD P R E VA L E N C E P R E D I C T E D TO AND MILD COGNITIVE P O P U L AT I O N P R E D I C T E D TO I N C R E A S E BY 4 0 % B
Slide 10: NeuraCeq® is used to help diagnose Alzheimer's disease
NeuraCeq® is used to help diagnose Alzheimer’s disease T H E PAT I E N T D I A G N O S T I C J O U R N E Y W I T H 45+ MINUTES 1 The patient waits 45 – 130 minutes1 3 R E S U LT S R E V I E W after injection, allowing time for After the scan, a radiologist / NeuraCeq® to locate and bind to 5 INJECTI
Slide 11: NeuraCeq® delivers value to key stakeholders
NeuraCeq® delivers value to key stakeholders NeuraCeq® delivers significant value by providing accurate and specific detection of amyloid plaques that aides in the diagnosis of Alzheimer’s disease. This diagnosis enables patients to access disease-modifying drugs and medical support to reduce sympto
Slide 12: Recent market events in the US have created an inflection point
Recent market events in the US have created an inflection point in the NeuraCeq® growth trajectory Accelerated demand for diagnostics and treatment monitoring to be used with therapeutics AU G 2 0 2 4 JUL 2024 Increasing adoption due to lower cost-to-use and growing demand as more patients are diagn
Slide 13: NeuraCeq® is well-placed to capitalise on the growing market opportunity
NeuraCeq® is well-placed to capitalise on the growing market opportunity and compete with other global players 1 2 FIT-FOR-PURPOSE SCALE VA LU E - A D D S E RV I C E Successfully expanded sales team and manufacturing sites Offers customers a differentiated, value-add service using in high priority l
Slide 14: Drive to maximise growth at each stage in sales, manufacturing and distribution
Drive to maximise growth at each stage in the NeuraCeq® sales, manufacturing and distribution process H O W N E U R A C E Q ® I S S O L D A N D S U P P L I E D T O PAT I E N T S PRESCRIPTION ORDER PRODUCTION S U P P LY Neurologists requests an amyloid PET- Imaging centre / hospital schedules Manufac
Slide 15: US team is set-up to accelerate revenue growth
United States (US) team is set-up to accelerate revenue growth, thanks to our dedicated focus and deep knowledge 1 2 3 4 E X PA N D I N G U S TA R G E T I N G H I G H D E D I C AT E D S U P P O R T BUILDING ROBUST TEAM DEMAND AREAS TEAM R E L AT I O N S H I P S …to capture growing demand …where Alzh
Slide 16: Targeted approach to establishing manufacturing sites in high demand US locations
Targeted approach to establishing manufacturing sites in high demand US locations M A N U FA C T U R I N G S I T E S L O C AT E D I N G E O G R A P H I E S M A N U FA C T U R I N G C A PA C I T Y I N C R E A S E D TO M AT C H WITH HIGHER ALZHEIMER’S DISEASE PREVALENCE GROWING DEMAND2 Forecast NeuraC
Slide 17: European growth driven by partners' manufacturing and distribution capabilities
European growth will be driven by an increase in our partners’ manufacturing and distribution capabilities E X PA N D I N G M A N U FA C T U R I N G S I T E S W I L L E N A B L E L M I F O C U S O N I N C R E A S I N G M A N U FA C T U R I N G C A PA C I T Y TO ACCESS A LARGER PROPORTION OF THE EURO
Slide 18: Sales approach in Europe focused on building relationships with distributors
Sales approach in Europe is focused on building relationships with distributors, who sell NeuraCeq® directly to imaging centres 1 2 A N T I C I PAT I N G A P P R O VA L S O F A D TA R G E T E D A P P R O A C H W I T H THERAPEUTICS DISTRIBUTORS …to ensure manufacturing and distribution capacity meets
Slide 19: NeuraCeq® allows LMI to participate in the growing Amyloid PET-CT market by FY29
NeuraCeq® allows LMI to participate in the significantly growing Amyloid PET-CT market by FY29 (US and Europe) 1 IN 4 PEOPLE OVER 37 MILLION SUFFERERS Population 65 YRS OF AD AND MCI Impacted (US and Europe) 17 MILLION ELIGIBLE FOR AMYLOID PET-CT 2% 12 % Total % referred for PET-CT is forecast to in
Slide 20: NeuraCeq® (US only) – Profitability
NeuraCeq® (US only) – Profitability T O D AY TREND DRIVERS Dose 100% S TA B L E P R I C I N G price US NeuraCeq® commercial dose Price per dose expected to remain stable. No new competitors expected, IP protection till 2031 and ongoing demand growth pricing ensure price stability Direct c. 30% of re
Slide 21: Summary of the NeuraCeq® growth opportunity
Summary of the NeuraCeq® growth opportunity T O D AY E S T I M AT E 2 0 2 9 MARKET 81k $162m 1.25m $2.5bn Growing US and European markets Amyloid PET-CT Global Amyloid Amyloid PET-CT Global Amyloid scan demand1 PET-CT market1 scan demand1 PET-CT market1 PRODUCT 250,000 to 20% - c. 20,000 160% - 190%
Slide 22: Pathway 2: Maximise Product Pipeline
Contents Pathway 2: Maximise Product Pipeline • Overview of late-stage and early-stage products • Market opportunity and overview of CardioCeq and PI-2620 • Market opportunity and overview of DED and GP1 • Out-licensing and future payments of RM2 22
Slide 23: Earlier-stage products will also diversify LMI into different diseases
Earlier-stage products will also diversify LMI into different diseases and into the therapeutics space GP1 DED RM2 (out-licensed) GP1 can detect the presence and active RM2 is a ‘theranostic’ for diagnosing and accumulation of blood clots before DED detects neuroinflammation, a major treating Metast
Slide 24: The late-stage product pipeline will allow LMI to access new market opportunities by 2027
The late-stage product pipeline will allow LMI to access new and growing market opportunities by 2027 PI-2620 CardioCeq PI-2620 binds to tau depositions and is a complementary Cardiac Amyloidosis is an underdiagnosed cause of heart product to NeuraCeq®, providing an additional level of failure. It c
Slide 25: LMI is well-placed to bring PI-2620 and CardioCeq to market
LMI is well-placed to bring PI-2620 and CardioCeq to market and drive successful growth PI-2620 CardioCeq WHY LMI ARE • Reimbursement pathway is already established • More specific diagnostic technique compared to WELL-PLACED TO alternative methods DRIVE GROWTH • $14 million revenue forecast already
Slide 26: LMI is planning to bring-to-market new diagnostic and therapeutic products
LMI is planning to bring-to-market new diagnostic and therapeutic products in the next 10 years L AT E - S TA G E P R O D U C T S E A R LY - S T A G E P R O D U C T S Next-generation radiotracers coming to market Longer term pipeline products across diagnostics and in the next 3 years therapeutics T
Slide 27: The out-licensing of RM2 has created immediate and longer-term revenue opportunities
The out-licensing of RM2 has created immediate and longer-term revenue opportunities Significant potential future revenue to be $36 million upfront payment received in FY24 generated in the next 5 – 10 years $36 million c. €10 million in Undisclosed significant development, regulatory and commercial
Slide 28: Pathway 3: Sustain R&D Services
Contents Pathway 3: Sustain R&D Services • Overview of how R&D as a service contributes to LMI’s value • Overview of LMI’s unique R&D Services & Supplies 28
Slide 29: Providing 'R&D as a service' delivers significant value for LMI
Providing ‘R&D as a service’ delivers significant value for LMI 1 2 3 Consistent revenue stream that is Build new and expand existing Generates new R&D opportunities less subjective to regulatory relationships with leading that can be developed internally and approvals pharmaceutical and educational
Slide 30: LMI's R&D service offering differentiates us in the market
LMI’s R&D service offering differentiates us in the market LMI PROVIDE CROs WITH ACCESS TO AN END-TO-END R&D PROCESS Technical Radiopharmaceutical First-in-man (Proof- Clinical trial supply Imaging study Pre-clinical research radiopharmaceutical network setup & Commercialisation of-concept) studies
Slide 31: Conclusion and closing remarks
Contents Conclusion and closing remarks • Summary of the three pathways and future growth opportunity 31
Slide 32: Conclusion: LMI is expected to generate a diverse, sustainable source of revenue
Conclusion: LMI is expected to generate a diverse, sustainable source of revenue over the next 5 years LMI are well-positioned to grow significantly in the next 5 years thanks to its three pathways 1 2 3 NEURACEQ® PRODUCT PIPELINE R&D SERVICES & SUPPLIES NeuraCeq® demand is expected to Demand for PI
Slide 33: Questions
Questions LifO- san 33
Slide 34: About NeuraCeq®
About NeuraCeq® Lif suction About Neuracegq (florbetaben 18F) - for more information please visit: neuraceq.com US prescribing information (Life Molecular Imaging Ltd., Fareham, UK, May 2024) Indication Neuraceq? is a radioactive diagnostic agent indicated for Positron Emission Tomography (PET) imag
Slide 35: Appendix: Key terms
LifO- san Appendix: Key terms
Slide 36: Key terms
Key terms Key term Explanation Life Molecular Imaging Owned by Life Healthcare Group, LMI is a company specialising in radiopharmaceutical diagnostics. NeuraCeq® is LMI’s flagship product. It is a radiopharmaceutical tracer used to detect beta-amyloid plaques in the brain, aiding in the diagnosis Ne
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