Nanosonics Limited · ASX:NAN
Nanosonics — Investor Presentation (December 2009)
39 slides from Nanosonics's investor presentation, Dec 7, 2009
Slide 1: Nanosonics Limited (ASX:NAN) Investor Presentation
Nanosonics Limited (ASX:NAN) Investor Presentation 7 December 2009
Slide 2: Disclaimer
Disclaimer Summary information Forward looking statements This presentation contains summary information of Nanosonics Limited (“NAN”) This presentation contains certain forward-looking statements. The words 'anticipate', and is dated 7 December 2009. The information in this presentation does not 'b
Slide 3: Contents
Contents Executive summary 1. Introduction to Nanosonics 2. Trophon – a breakthrough product 3. Product Development p Opportunities pp 4. Anticipated news flow 5 5. Key Risks 6. Capital Raising 7 7. Investment Highlights
Slide 4: Executive Summary
Executive Summary • Nanosonics is seeking g to raise A$12 $ million via an underwritten p placement • Funds will be applied to: • support the rapid acceleration of growth both in terms of production and marketing support to drive the launch product (Trophon ultrasound probe re- re processor) in orde
Slide 5: Acceleration of Trophon Sales
Acceleration of Trophon Sales Region Indicators of increased demand Estimated market potential ANZ • High level disinfection (“HLD”) recommended between patients by • A$40 million the Australian Government • 2,000 Trophon units • Professional bodies support guidelines • In principle agreement to pur
Slide 6: Accelerated product development
Accelerated product development • Nanosonics will accelerate the internal development p of a suite of new pproducts whilst maintaining total control of the value chain • This will increase shareholder returns via: • owning and controlling all IP related to new products; • determining d t i i itits o
Slide 7: Accelerated product development
Accelerated product development Leveraging current platform technologies into a leadership position in low temperature point of care disinfection Trophon Platform Xonar Platform • Trophon EPR (ultrasound probe • Bed decontamination di i f ti ) disinfection) • Room / surface decontamination • Single
Slide 8: 1. Introduction to Nanosonics
1. Introduction to Nanosonics
Slide 9: Introduction
Introduction • Nanosonics Limited ((ASX: NAN)) owns intellectual property p p y relating g to unique q disinfection and sterilisation technologies which have application in a variety of markets • Launch product “Trophon” will revolutionise the processes for disinfection of ultrasound probes – NAN ha
Slide 10: Our vision: Commercialising innovative solutions to global challenges
Our vision: Commercialising g innovative solutions to global challenges “At Nanosonics our goal is to safeguard the health and wellbeing of individuals, communities and environments by commercialising a stream of breakthrough disinfection and sterilisation technologies” 10
Slide 11: Our people
Our people Board Ron Weinberger David Fisher Maurie Stang David Slack David Radford David Radford CEO Leadership team Arjang Safa Chris Grundy Kirste Jarvis Jianhe Chen Ron Weinberger Manufacturing CFO & Company HR Manager QA Manager GM Innovation & &Supply pp y Chain Secretary y Technology gy
Slide 12: Financials
Financials Category Date Amount Total shares on issue @ 4-Dec-09 196.5 million Sh Share price i @4 4-Dec-09 D 09 A$0 625 A$0.625 Market capitalisation @ 4-Dec-09 A$122.8 million Cash on hand* @ 30-Sep-09 A$12.1 million Cash burn / month @ 30-Sep-09 A$0.6 million First Revenue Q4-FY09 * Nanosonics is
Slide 13: 2. Trophon – a breakthrough product
2. Trophon – a breakthrough product 13
Slide 14: Overview
Overview The Product – Specifically designed to disinfect ultrasound transducers – Meets current market needs of the medical community, regulators and OEMs – Based on Nanosonics’ NanoNebulant platform technology The Opportunity pp y – Current disinfection practices are known to be unacceptable – Nos
Slide 15: The healthcare revolution to point of care
The healthcare revolution to point of care • Aging g g • Productivity oduct ty population Minimally Drives rapid • Patient • Increased invasive turnaround of throughput elective procedures disinfection/ surgeries sterilisation • New Point of care technologies Low Temp Sterilisation • Ease of use • P
Slide 16: Market opportunity
Market opportunity Low Temperature “Point of Care” Solutions CSSD Marketcap Revenue Market Steris US$1.7B ~US$ 1.3B Sterrad St d US$0.8B US$0 8B ~US$ US$ 500M Evolution CSSD = Central Sterilising Services Department 16
Slide 17: Market opportunity-Trophon
Market opportunity-Trophon Annual procedures Region Radiology O&G Other Total Total Commercial intracavity intracavity targeted targeted available update market market ANZ 0.5M 1M 0.2M 1.7M 5.8M Controlled roll-out completed Western Europe 7M 16M 3M 26M 70M Roll out underway Canada 0.4M 0.9M 0.2M 1.
Slide 18: Competitive advantage
Competitive advantage The only point of care, low temperature, automated ultrasound reprocessor available globally Customer benefits: – New standard in high level disinfection – Short operating time • Process time only 7 minutes • Improve workflow Æmore patients – Outstanding materials compatibility
Slide 19: Regulatory environment
Regulatory environment Region Guidelines driving demand Regulatory approval status ANZ • HLD recommended between patients by the • TGA approval granted February 2009 Australian Government • TGA audit August 2009 • Professional bodies support guidelines Canada • Highly regulated and recommends HLD •
Slide 20: End user endorsement of Trophon EPR
End user endorsement of Trophon EPR “The Trophon EPR will make the task of disinfecting ultrasound transducers significantly faster, safer and more convenient and it is easily integrated into current medical practices and procedures” Dr Michael Cooper, Head of Gynaecology at Royal Prince Alfred Hosp
Slide 21: Sales and distribution
Sales and distribution Revenue model • Initial device sale • Annuity income via consumables Distribution channels • Dual channel distribution strategy in place • Primary channel comprises dedicated ultrasound distributors with recognised expertise in the ultrasound market (appointed in 14 European c
Slide 22: Roll-out – ready to accelerate
Roll-out – ready to accelerate Controlled roll-out successfully y completed p • Initial 6 month controlled roll-out of Trophon EPR to Australia, New Zealand and France successfully completed: • allowed field experience prior to rapid expansion; • pricing i i andd marketing k ti pitchit h validated l
Slide 23: Production and testing capacity
Production and testing capacity • Current facilities have p potential p production capacity p y of 2,000 devices per annum/shift • Currently producing at an annualised rate of ~1,600 devices per annum • Short term move to increase capacity to 8,000 devices per annum, with a targeted move to custom s
Slide 24: Roll-out highlights
Roll-out highlights Australia & New Zealand • Product launched • Estimated market opportunity A$40 million • Strong regulatory support • In principle agreement for 200 unit order in Australia - standardisation on Trophon p • Customer re-orders 24
Slide 25: Roll-out highlights
Roll-out highlights Europe u ope • Estimated market opportunity A$420 million France • National N ti l move b banning i ththe use off glutaraldehydes • Positive market feedback Germany y & UK • Product launch FY10 • Nanosonics submission to establish new national ultrasound standards in UK 25
Slide 26: Roll-out highlights
Roll-out highlights US & Canada • Estimated market opportunity A$500 million • CDC guidelines recommending use of hydrogen peroxide based product • 510(k) application lodged with US FDA • Final due diligence on US distributor in Q1 CY10 Q1-CY10 Japan • Estimated market opportunity A$400 million • Po
Slide 27: 3. Product Development Opportunities
3. Product Development Opportunities
Slide 28: Product development opportunities
Product development opportunities Nanosonics’ N i ’ platform l tf ttechnologies h l i are transferable t f bl andd highly hi hl scalable l bl to t other applications 28
Slide 29: 4. Anticipated news flow
4. Anticipated news flow
Slide 30: Anticipated news flow
Anticipated news flow Near term catalysts y ahead… • European and ANZ sales updates • Appointment of US distributor • First sales into new European countries • Establishment of US office • FDA approval pp and first US sales • Move to new premises in Australia to support growth • Application to Japan
Slide 31: 5. Key risks
5. Key risks
Slide 32: Key risks
Key risks • Regulation g – securing US FDA approval – securing Japanese Ministry of Health approval • Technology gy – competitive threat of new or competing technologies • Intellectual property – abilityy to p protect IP • Product liability – liability risks are inherent in research and development
Slide 33: 6. Capital raising
6. Capital raising
Slide 34: Offer Summary
Offer Summary Offer Details Institutional Placement • A$12.0 million, fully underwritten Issue Price • A$0.55 per share Offer Structure • Placement of ~21.8 million shares (~11.1% of issued capital) • New shares will rank equally with existing shares Pricing Discounts • 12.0% to last close (A$0.625
Slide 35: Use of Funds
Use of Funds • The funds raised will support pp the following g key y initiatives: – the rapid expansion and global commercialisation of Trophon through increased investment in international sales, marketing and support / training resources – acceleration of a suite of new products with significant
Slide 36: Indicative Timetable
Indicative Timetable Placement key dates Announcement of capital raising Monday, 7 December 2009 Books close Monday, 7 December 2009 – 4.00pm Confirmation of Allocations and Registration Details (“CARD”) form returned Tuesday, 8 December 2009 – 9.00am Announcement of completion of Institutional Plac
Slide 37: 7. Investment highlights
7. Investment highlights
Slide 38: Investment Highlights
Investment Highlights • Global revolution occurring to point of care care, low temperature temperature, Global regulatory environment high-level disinfection driving demand • Regulators and industry body guidelines are supporting demand • Controlled roll-out now completed, p , which has validated th
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