Cogstate Ltd · ASX:CGS
Cogstate — Investor Presentation (June 2014)
22 slides from Cogstate's investor presentation, Jun 6, 2014
Slide 1: Cogstate Investor Presentation June 2014
For personal use only Cogstate Investor Presentation June 2014
Slide 2: Key Takeaways
Key Takeaways For personal use only 1. Strong growth is anticipated for FY15 after a clearly disappointing performance of the Clinical Trials Business in FY14. Growth is expected to be driven by: – Expecting strong contract signings over the next 2 months ($6m - $8m) – $8.8m in contracted revenue in
Slide 3: Market and Financial Summary
Market and Financial Summary For personal use only Summary Financials Segment Financials Market Summary Period FY13A 1H14A Period FY13A 1H14A Shares on Issue 98.9m Share Price @ June 14 $0.24 Revenue ($m) 12.5 5.4 Revenue ($m) 12 month Range $0.55-$0.24 EBITDA ($m) (1.0) (2.7) Clinical Trials 11.8 4
Slide 4: FY14 Assessment
FY14 Assessment For personal use only • Early assessment that lower level of sales contracts in Clinical Trials would result in lower than forecast revenue • Initiated cost saving initiatives and capital raising • Identified new business opportunity (Precision Recruitment) and implemented new techno
Slide 5: FY14 Financial Guidance & Outlook
FY14 Financial Guidance & Outlook For personal use only • Lower level of sales contracts will result in a decrease in revenue from FY13 • Revenue in the range of $11.4 - $12.0 million (FY13: $12.5m) • The loss, before tax, is expected to be in the range of $4.5 - $5.0 million (FY13: $1.7m) – Axon Sp
Slide 6: Clinical Trials
COGSTATE CT a CLINICAL TRIALS Gg COGSTAaTE
Slide 7: Clinical Trials: Sales Contracts Update
Clinical Trials: Sales Contracts Update For personal use only • Since 1 July 2013 : signed $8.6m of clinical trial contracts – well down on internal targets. • As at 31 May: $8.8m of future contracted revenue of which $1.2m is to be invoiced in June and $4.2, in FY15. This time last year it was $7.9
Slide 8: Alzheimer's Disease – A Paradigm Shift in Clinical Trials Emerging
Alzheimer’s Disease – A Paradigm Shift in Clinical Trials Emerging For personal use only Cogstate Tests Uniquely Suited to Detecting Subtle Changes in brain function (cognition) in otherwise asymptomatic patients: Large data set of normal patients for comparison Unique monitoring tool – progress
Slide 9: Alzheimer's Disease – A Paradigm Shift in Clinical Trials Emerging
Alzheimer’s Disease – A Paradigm Shift in Clinical Trials Emerging For personal use only • Massive shift of interventions towards early stage (Pre-clinical) patients • Economics add up – long term utilisation 2013 onwards and healthier patients • Biggest problem is selecting patients who are truly p
Slide 10: Alzheimer's Disease – A Paradigm Shift in Clinical Trials Emerging
Alzheimer’s Disease – A Paradigm Shift in Clinical Trials Emerging For personal use only • Up to 25% of patients recruited into Eli Lilly’s 2x Phase 3 trials for solanezumab did not have Alzheimer’s • Significantly lowers trial power, drives a non-significant endpoint • Major temporal and financial
Slide 11: New Business Opportunity – Clinical Trial Recruitment
New Business Opportunity – Clinical Trial Recruitment For personal use only • An increasing number of clinical trials are integrating cognitive testing into either inclusion or exclusion criteria or specify cognitive testing outcomes measures (both primary and secondary). • The following is an analy
Slide 12: Relevant Clinical Trials
Relevant Clinical Trials For personal use only Primary Indication opportunity for screening based on primary or secondary endpoints within a clinical trial Opportunity for inclusion / exclusion criteria for clinical trials - Typically a one-off test per patient Securing contracts for just 5 of these
Slide 13: Cogstate Precision Recruitment
Cogstate Precision Recruitment For personal use only Background Clinical trials are hindered by a lack of access to qualified patients resulting in expensive recruitment costs, delayed clinical trial enrollment, and expansive infrastructures. • Recruitment delays account for an average of 4.6 months
Slide 14: Designed To Solve The Problem
Designed To Solve The Problem For personal use only • Leverages a lower cost, digital pre-screening of cognitive function. • Designed to reduce the volume of non-qualifying subjects presenting to the clinical site for full screening and delivering only a pre-enriched population who are more likely t
Slide 15: A More Efficient Process
A More Efficient Process For personal use only Primary Outreach Primary Outreach invites general participation Cognition Registry provides Cognition Registry well-characterized subject cohort (opt-in) Precision Recruitment pre-screens all subjects Precision Recruitment for cognition and other criter
Slide 16: Economics and Pricing Structure
Economics and Pricing Structure For personal use only Economics The economics of Precision Recruitment and Cognition Registry are shaped by two forces which serve to accelerate the pace and ultimate success of the recruit: • Reducing the on-site screen fail rate of subjects, which is a function of a
Slide 17: Cognigram
For personal use only 17
Slide 18: COGNIGRAM Canada Update
COGNIGRAM Canada Update For personal use only • Cogstate recently announced it had assumed the full rights of promotion of COGNIGRAM in Canada. • No sales commissions payable to Merck, Cogstate retains 100% of revenues beyond July 1 st. • Merck amendment allows analysis of alternative distribution c
Slide 19: Early Detection is important
Early Detection is important For personal use only Cogstate messaging aligns with key public health initiatives Education at GP level required given multitude of tests offered which are not sensitive to early change Image based (PET) testing is expensive, and should be confirmatory only (not a
Slide 20: Axon Sports
For personal use only 20
Slide 21: Axon Sports Update
Axon Sports Update For personal use only • Continued success with elite sales: – US Men's Nation Soccer Team – Dallas Mavericks (NBA Basketball) – D1 college football programs • Business opportunity does not align with Cogstate strategic focus – Distraction of management time – Net investment places
Slide 22: For personal use only
For personal use only COGSTAlhe ASSESS + MONITOR « IMPROVE