Gentian Diagnostics Asa · OSL:GENT
Gentian Diagnostics Asa — Q2 2024 Earnings Presentation
30 slides from Gentian Diagnostics Asa's earnings presentation, Aug 29, 2024
Slide 1: Q2 24 Presentation
Q2 24 Presentation 29 August 2024
Slide 2: Important notice
Important notice This presentation has been prepared by and is the sole which are subject to risks, uncertainties and other factors with applicable laws and regulations. The Company require responsibility of Gentian Diagnostics ASA (the “Company” that may cause actual events to differ materially fro
Slide 3: Efficient diagnostics for better treatment decisions
Efficient diagnostics for better treatment decisions
Slide 4: Attractive value proposition: fast results at lower cost
Attractive value proposition: fast results at lower cost The IVD market challenge Gentian’s solution High-value benefits Many of the existing, but clinically Gentian converts existing biomarkers relevant biomarkers are available only to the most efficient automated, high- Faster results leading to b
Slide 5: Strategy with focus on profitable sales growth
Strategy with focus on profitable sales growth 7* tests contributing Industry-leading to saving costs and team and knowhow protecting life Team with proven track- USD 1.8bn serviceable record and industry market with 5-10% annual expertise from market growth leading IVD companies Entered partnership
Slide 6: Highlights
Highlights
Slide 7: Improved margin and continued positive EBITDA
Improved margin and continued positive EBITDA 2Q24 financials and key milestones Highlights ▪ Sales of NOK 38.3 million in 2Q24, up 12% vs 2Q23 (13% Sales Gross margin organic growth). Sales revenue of NOK 76.8 million in 1H24 up 17% vs 1H23 (16% organic growth). MNOK 38.3 57% ▪ EBITDA of NOK 6.8 mi
Slide 8: Good sales momentum in all markets
Good sales momentum in all markets Highlights Sales revenue - geographic split ▪ Sales of fCAL® turbo 26% in 2Q24 driving sales growth in MNOK 2Q24 2Q23 YTD24 YTD23 2023 Europe ▪ Year to date sales growth in the US driven by customer US 2.8 2.8 5.7 4.8 8.7 additions Europe 28.6 25.5 56.5 47.6 92.8 ▪
Slide 9: Continuously improving cost development
Continuously improving cost development Gross margin % Operating expenses MNOK 2Q24 2Q23 YTD24 YTD23 2023 Sales and 6.3 5.9 12.6 11.2 23.1 marketing expenses 57% Administration 53% 6.5 6.0 12.4 13.2 25.1 53% expenses 49% 46% 46% Research and 42% 4.1 5.7 9.2 12.4 36.1 39% development expenses Total 1
Slide 10: Stable cash position
Stable cash position 2Q24 balance sheet and cash flow Capital priorities ▪ Cash position 2Q24 unchanged compared to 2Q23 Cash Capex ▪ No interest-bearing debt MNOK 81.0 MNOK 1.8 ▪ Long-term net working capital/sales assumed at MNOK 80.7 in 2Q23 MNOK 1.1 in 2Q23 ~30% FCF Equity ratio MNOK -4.6 84.2%
Slide 11: NT-proBNP successful completion of optimization
NT-proBNP successful completion of optimization A major milestone reached in the development of the assay ▪ In the second quarter, Gentian successfully completed the optimization phase, marking a major milestone in the development of this product. ▪ The remaining phases of development include verifi
Slide 12: Organisational update
Organisational update Two key hires announced after Q2 Matti Heinonen (Arvela) Dr. Frank Frantzen CEO Chief Technology Officer • 25+ years of experience from diagnostics and life • 35+ years of experience from the diagnostic science industry • Extensive international experience from US and • Princip
Slide 13: Product update
Product update
Slide 14: Cystatin C
Cystatin C – guidelines support extended growth trajectory Sales of Cystatin C last 2 years (MNOK) ▪ Updated global guidelines released during Growth: +9% 1Q24 expected to further support adoption and 16.5 usage of Cystatin C 14.9 14.4 14.0 13.6 13.3 12.2 ▪ Continued product sales growth in the US a
Slide 15: fCAL turbo
fCAL® turbo – continued adoption in central laboratory environments Sales of fCAL® turbo last 2 years (MNOK) Growth: +26% ▪ Sales growth of 26% in 2Q24 compared to 2Q23 15.0 and 33% in 1H24 vs 1H23. 13.6 13.7 11.7 12.0 ▪ Automation and ease-of-use drive continued 9.5 8.8 9.0 8.1 adoption into core l
Slide 16: Third-party products
Third-party products – stabilised sales in line with previous quarters Sales of third-party products last 2 years (MNOK) Growth: -20% ▪ Sales in the last three quarters show a recurring 5.8 higher level than previous quarters 4.8 4.7 4.6 3.6 ▪ Q2 sales were soft compared to the strong Q2 2.7 2.9 las
Slide 17: Universal regional growth underscores global appeal
Universal regional growth underscores global appeal Sales by region last 2 years (MNOK) US Asia 2.0 2.9 2.8 Europe 2.8 6.9 1.9 8.9 7.7 2.0 1.5 1.1 5.9 ▪ 2Q24 sales growth was 12% in Europe, flat in the 9.4 7.3 11.5 US 7.3 2.6 3.1 25.5 26.5 27.9 28.6 ▪ Growth of 17% in Asia in 2Q24 vs 2Q23, but 19.2
Slide 18: Summary
Summary EBITDA development (MNOK) • Continued sales momentum with weakened order patterns from China expected to continue 11.6 throughout this year • Gross margin improved to 57% vs 53% in 2Q23 3.3 • Strong improvement of EBITDA in 1H24 to NOK 11.6 million vs 3.3 million in total for 2023 • NT-proBN
Slide 19: Q&A
Q&A
Slide 20: Appendix
Appendix
Slide 21: P&L highlights
P&L highlights MNOK 2Q24 2Q23 YTD24 YTD23 2023 Sales 38.3 34.2 76.8 65.6 135.2 Cost of goods sold -16.6 -16.0 -34.8 -32.0 -70.9 Gross profit 21.7 18.2 42.0 33.6 64.2 Other revenues 1.0 2.0 1.7 4.1 7.2 R&D expenses -5.1 -6.9 -11.2 -14.7 -36.1 Sales and marketing expenses -6.4 -6.0 -12.9 -11.4 -23.1 A
Slide 22: Balance sheet highlights
Balance sheet highlights MNOK 2Q24 2Q23 2023 Inventory 41.2 42.4 37.1 Accounts- and other receivables 23.5 19.6 17.0 Cash and cash equivalents 81.0 80.7 87.6 Total assets 186.9 190.4 181.0 Total paid-in equity 315.7 312.2 313.7 Total retained equity -158.4 -156.4 -167.0 Total equity 157.4 155.8 146.
Slide 23: Cash flow highlights
Cash flow highlights MNOK 2Q24 2Q23 YTD24 YTD23 2023 Operating activities -1.5 7.1 1.1 3.8 15.5 Investing activities -1.8 -1.1 -5.0 -2.2 -4.9 Financing activities -1.3 -1.2 -2.5 -2.3 -4.6 Changes in cash and cash -4.6 4.8 -6.4 -0.7 6.0 equivalent Cash and cash equivalent at the 85.6 76.0 87.6 81.6 8
Slide 24: Gentian develops and manufactures innovative and efficient diagnostic tests
Gentian develops and manufactures innovative and efficient diagnostic tests IN VITRO DIAGNOSTICS (IVD) GENTIAN DIAGNOSTICS • Tests done on samples that have been • Focused on Immunoassay, the taken from the human body such as largest IVD segment, where an blood. IVD can detect diseases, antibody1 is
Slide 25: Achieved 30% p.a. sales growth last five years
Achieved 30% p.a. sales growth last five years 160 Sales revenue and CAGR Partnerships prove viability of go-to-market model NOKm 140 +30% 135 120 Global distribution agreement for GCAL®, initial roll-out in Europe 100 102 80 Long-standing commercial 83 partnership for Cystatin C 60 63 40 48 Partner
Slide 26: Products targeting important disease groups
Products targeting important disease groups ESTABLISHED PRODUCTS IN MARKET IN PRODUCT DEVELOPMENT DEVELOPMENT Lifestyle Inflammation Pancreas Inflammation Cardiac Kidney disease Inflammation associated & infection deficiency & infection disease diseases Cystatin C Canine CRP fCAL® fPELA® RBP GCAL® N
Slide 27: USD 1.8bn global serviceable market estimated to grow by 5-10% annually
USD 1.8bn global serviceable market estimated to grow by 5-10% annually next 4-6 years Serviceable Market Total Addressable Total Serviceable Target market share, Gentian’s annual growth rate, Market, USDm Market, USDm unrisked revenue take next 4-6 years Established products 2,220 240* ~25% 30-50%
Slide 28: Dedicated and experienced management team
Dedicated and experienced management team CEO, CFO & COO CSO CCO CTO Consulting Founder VP R&D VP QA & RA VP BD Njaal Dr. Alexandra Markus Dr. Frank Dr. Erling Dr. Torsten Anne-Mette Jack Kind Havelka Jaquemar Frantzen Sundrehagen Knüttel Horsrud Akre Andreassen 20+ years of relevant industry experi
Slide 29: Board of directors
Board of directors Hilja Espen T. Kari E. Kjersti Fredrik Ibert Jørgensen Krogstad Grimsrud Thoresen Chair of Board member Board member Board member Board member the Board Hilja Ibert has 25+ years Espen Tidemann Kari Krogstad has Kjersti Grimsrud is Fredrik Thoresen is a of experience from the Jørg
Slide 30: Top 20 shareholders
Top 20 shareholders Shareholder No of shares % Vatne Equity AS 2 110 224 13.68 % Kvantia AS 1 803 368 11.69 % Holta Invest AS 1 228 502 7.97 % Verdipapirfondet Delphi Nordic 694 300 4.50 % Safrino AS 649 700 4.21 % Carpe Diem Afseth AS 562 689 3.65 % J.P. Morgan SE 523 631 3.40 % Verdipapirfondet DN