Slide 1: FY24 Results Investor Briefing
ASX Announcement 22 August 2024 FY24 Results Investor Briefing Cogstate Ltd (ASX:CGS) has today released an Investor Briefing that provides a summary of the financial results for the year ended 30 June 2024 and also provides commentary in respect of the business and financial outlook. For personal u
Slide 2: About Cogstate
About Cogstate Cogstate Ltd (ASX:CGS) is the neuroscience technology company optimising brain health assessments to advance the development of new medicines and to enable earlier clinical insights in healthcare. Cogstate technologies provide rapid, reliable and highly sensitive computerised cognitiv
Slide 3: Investor Update August 2024
For personal use only Investor Update August 2024 © 2024 Cogstate Ltd. All rights reserved.
Slide 4: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Cogstate Limited (‘Cogstate’). The information in this presentation is of a general na ture and does not purport to be complete, nor does it contain all the information which would be required in a prospectus prepared in accorda
Slide 5: Key Considerations
Alzheimer’s disease R&D is progressing & 1 For personal use only expanding in a predictable manner Eisai renegotiation was commercially sound 2 AND provides important options for growth Key Considerations Revenue growth is impressive in the context of 3 Clinical Trials sales Technology investment ov
Slide 6: Alzheimer's Disease
Alzheimer’s Disease Alzheimer’s disease R&D is progressing & 1 For personal use only Market Expansion expanding in a predictable manner • More pharma companies are investing in Alzheimer’s R&D Customer Growth • Four pharma companies started phase 2 Eisai renegotiation was commercially sound 2 AND pr
Slide 7: Cogstate Alzheimer's Trial Starts
Cogstate Alzheimer’s Trial Starts Large Pharma Customers 8 For personal use only 7 Number of New Trials Note 2 6 5 Growth in Alzheimer’s 4 Large Pharma Customers 3 2 Cogstate strategy is to engage sponsor teams at the Note 1 1 earlier stages of development and follow a therapy through to later stage
Slide 8: Value of Clinical Trials Sales Contracts - Excluding Alzheimer's Trials
Value of Clinical Trials Sales Contracts For personal use only - Excluding Alzheimer’s Trials 16 60% Growth In Sales 14 Outside Of Alzheimer’s 12 Other significant indications include: US$ Millions 10 • Rare Diseases 8 • Major Depressive Disorder 6 • Migraine 4 • Narcolepsy 2 • Parkinson’s disease 0
Slide 9: IP Ownership
IP Ownership Financial Implications Alzheimer’s disease R&D is progressing & 1 For personal use only • In FY20, licensed IP for $45m plus royalties expanding in a predictable manner • In FY24, bought-back for $15m reduction in future payments to Cogstate, impacting cashflow from FY28-FY31 only Eisai
Slide 10: Revenue Growth
Revenue Growth Clinical Trials Sales Alzheimer’s disease R&D is progressing & 1 For personal use only expanding in a predictable manner • $27m of clinical trials sales • Sales drive in-period revenue growth, especially growth in license fees License Fee Revenue Eisai renegotiation was commercially s
Slide 11: Technology Driving Margin Improvement
Technology Driving Margin Improvement Alzheimer’s disease R&D is progressing & 1 For personal use only expanding in a predictable manner Technology Investment • Recent investment mainly focused on automation in Cogstate service delivery Eisai renegotiation was commercially sound 2 AND provides impor
Slide 12: Strong Start to FY25
Strong Start to FY25 For personal use only • Net value of contracts executed FY25 year-to-date is $9.3m. The Net value includes: o Gross value of sales contracts executed since 01-Jul-24 (FY25 year-to-date) is $29.6m o Program of studies for a drug candidate was redesigned to consolidate multiple Ph
Slide 13: FY24 Financial Results
For personal use only FY24 Financial Results 11
Slide 14: FY24 Financial Results
FY24 Financial Results (All figures in US$, unless stated) For personal use only Clinical sales contracts executed Contracted future revenue as at 21 August 2024 $27.0m -21% $110.9m Doesn’t tell the full story. Lower level of Clinical Trial sales contracts. -16% Alzheimer’s growth profile for future
Slide 15: Cogstate Group
For personal use only Cogstate Group US$ millions FY24 FY23 YTY % Highlights Revenue 43.4 40.5 7% • Revenue growth resulting from Clinical Trials, offset by decline in Healthcare Gross Profit 24.6 20.8 18% • Strong improvement in gross profit margin resulting from May 2023 restructuring GP% 57% 52%
Slide 16: Segments
Segments Highlights Clinical Trials (including Research) Clinical Trials For personal use only US$ millions FY24 FY23 YTY % • Growth in revenue despite low in-year revenue yield due to low new contract Revenue 39.4 36.1 9% sales Direct Costs (excluding depreciation) (13.5) (14.0) 3% • Strong improve
Slide 17: Cash Flow
Cash Flow US$ millions FY24 FY23 YTY % Highlights For personal use only Net Profit after Tax 5.4 3.6 53% • Increased receipts from customers from growth in Clinical Trials Depreciation & Amortization 2.5 2.1 18% • Reduced employee costs following Disposal of Assets 0.1 0.4 (118%) May-23 restructure
Slide 18: Future Contracted Revenue Run-Off Analysis
Future Contracted Revenue Run-Off Analysis • FY25 revenue under contract, $33.6m as at 40 21-Aug-24 For personal use only ➢ Clinical Trials is $31.4m, compared to 35 $27.7m at 30-Jun-23, up 13% YTY ➢ Healthcare is $2.2m, compared to $4.2m 30 at 30-Jun-23, reflecting to renegotiation to the Eisai glo
Slide 19: Business Updates
For personal use only Business Updates 17
Slide 20: CNS diseases is a large and growing area of drug development
Central Nervous System diseases is a large and growing area of drug development with few strong competitors For personal use only CNS is the second largest segment of the $25B clinical trials market, taking 18% second to oncology. Source: https://shorturl.at/eqmKE 18
Slide 21: Alzheimer's disease expected to be fastest growing indication in CNS
Alzheimer’s disease is expected to be the fastest growing indication in CNS For personal use only 12% - 14% CAGR 19
Slide 22: Alzheimer's disease expected to be fastest growing indication in CNS
Alzheimer’s disease is expected to be the fastest growing indication in CNS For personal use only • First-gen early-stage AD drugs are on market – prescription rates are slower than expected but improving • Health system preparedness is happening and Cogstate has ambitions to play a role here • New
Slide 23: Cogstate Focus Areas Next Months
For personal use only Cogstate Focus Areas Next 12 Months 21
Slide 24: End-to-End Solution for Optimized CNS Endpoints
End-to-End Solution For personal use only for Optimized CNS Endpoints One the challenges with CNS trials is they depend on clinical outcome assessments that are prone to error and variance, which can diminish their sensitivity to drug effect. Cogstate brings a uniquely comprehensive set of technolog
Slide 25: Cogstate Opportunity Outside Clinical Trials
For personal use only Cogstate Opportunity Outside Clinical Trials 23
Slide 26: Re-Acquired IP
Re-Acquired IP Based on our assessment of the opportunity, For personal use only Cogstate has re-negotiated its agreement with Eisai and re-acquired rights to Cogstate IP. Eisai now has non-exclusive license of: • Cognigram in USA; and • CogMate in certain Asian countries. Cognigram is FDA cleared m
Slide 27: FY25 Outlook
FY25 Outlook For personal use only Encouraging start to FY25 • $9.3m net sales contracts • $29.6m gross sales contracts Significant market opportunity in CNS diseases Opportunities for sales growth in Alzheimer’s disease and other indications Opportunities for exciting pilot programs outside of clin
Slide 28: For personal use only
For personal use only
Slide 29: Appendices
For personal use only Appendices 27
Slide 30: Cogstate Offering In Clinical Trials
For personal use only Cogstate Offering In Clinical Trials 28
Slide 31: Clinical science expertise, technology and operational excellence
Cogstate brings together For personal use only clinical science expertise, innovative technology, and operational excellence to help clinical trial teams understand drug safety and efficacy. 29
Slide 32: Strategic guidance on cognitive measures
For personal use only Strategic guidance on the selection, execution and analysis of cognitive measures. • Access to thousands of cognitive data profiles generated in different study populations, interventions, mechanisms • Endpoint selection, powering decisions, robust statistical analysis and inte
Slide 33: Licensing and translating rating scale instruments
For personal use only Licensing and translating rating scale instruments for a study is a meticulous process that can dramatically impact trial start-up timelines and data quality. • Licensing agreements, translations and linguistic validation, development of master source documents • Migration to e
Slide 34: At-home data collection in clinical trials
For personal use only At-home data collection is increasing in Clinical Trials. Cogstate is expertly positioned to support remote administration of conventional clinical assessments as well as Cogstate proprietary digital assessments. • Self-administered digital assessments • Central rating via tele
Slide 35: Rater training
For personal use only Clinical trial sponsors must ensure raters administer scales in the most accurate and standardized way possible. • Prepare raters to administer scales to high standards in the timeliest way possible. • Eliminate unnecessary training based on rater experience and leverage custom
Slide 36: Electronic clinical outcome assessments (eCOA)
For personal use only Conventional paper and pencil assessments allow missing data and erroneous transcription. Electronic clinical outcome assessments (eCOA) allow for digital capture of study data with pre-set workflows, real-time edit checks and algorithmic flags to improve data quality. • Patien
Slide 37: Central monitoring of rater variability and error
For personal use only Rater variability and error can be detrimental to a study, adding noise and diminishing signal detection. • Develop and execute strategic, risk-based central monitoring programs to ensure the reliability and validity of clinical measures. • 250+ highly trained clinical and scie
Slide 38: Cognitive assessments
For personal use only Increases the sensitivity and specificity of the measurement of human cognition. • Designed and validated to assess memory, verbal learning, attention, psychomotor function, motor function, executive function, vigilance, and emotional recognition • Batteries are customized for