Pacific Edge Limited · NZX:PEB
Pacific Edge — Shareholder Meeting (July 2022)
54 slides from Pacific Edge's shareholder meeting presentation, Jul 28, 2022
Slide 1: Annual Shareholders Meeting
PACIFIC EDGE Annual Shareholders Meeting Fullwood Room 1 Harrop Street Dunedin 28 July 2022
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Important Notice by their very nature, involve inherent risks and uncertainties. Many of Investment risk This presentation has been prepared by Pacific Edge Limited (PEL) solely those risks and uncertainties are matters which are beyond PEL’s control An investment in
Slide 3: Chris Gallaher, Chairman
be CHRIS GALLAHER Chairman a biadder 7 PACIFIC EDGE ANCER DIAGNOSTICS COMPAN
Slide 4: Directors
DIRECTORS SARAH PARK ANATOLE MASFEN BRYAN WILLIAMS ANNA STOVE MARK GREEN TONY BARCLAY
Slide 5: Meeting Agenda
MEETING AGENDA 1. CHAIRMAN AND CEO PRESENTATIONS 2. SHAREHOLDER DISCUSSION 3. RESOLUTIONS 4. GENERAL BUSINESS 5. MEETING CLOSE
Slide 6: FY Highlights: Test Volumes Accelerate in the Pivotal US Market
FY 22 HIGHLIGHTS: TEST VOLUMES ACCELERATE IN THE PIVOTAL US MARKET PACIFIC EDGE GLOBAL TEST VOLUMES1 PACIFIC EDGE OPERATING REVENUE 25,000 23,086 $14,000 46% $12,000 49% $11,445 20,000 16,861 $10,000 15,697 15,814 14,448 REVENUE $(000) $7,701 TEST VOLUME 15,000 $8,000 10,000 $6,000 $4,370 $3,400 $3,
Slide 7: New Executive and Board Leadership
NEW EXECUTIVE AND BOARD LEADERSHIP TONY BARCLAY DR PETER MEINTJES Independent Director Chief Executive Officer
Slide 8: Outlook: Investing for Long Term Growth
OUTLOOK: INVESTING FOR LONG TERM GROWTH • Directors have noted the sharp shift in global share market sentiment since the start of the year and the impact that this has had on company valuations, particularly among growth companies such as Pacific Edge. • We remain focused on the things that we can
Slide 9: Dr Peter Meintjes, Chief Executive Officer
DR PETER MEINTJES Chief Executive Officer
Slide 10: Molecular Diagnostics Value Chain: Patient Journey
MOLECULAR DIAGNOSTICS VALUE CHAIN: PATIENT JOURNEY SURGICAL OR GENETIC RISK DISEASE SYMPTOMS THERAPEUTIC AT BIRTH MANIFESTS ONSET INTERVENTION GENOMIC SCREENING ASYMPTOMATIC SCREENING PATIENT/DISEASE MANAGEMENT SURVEILLANCE (PERSONALIZED GENETIC RISK) (EARLY DETECTION) (CLINICAL DECISION MAKING) (RD
Slide 11: Cxbladder in the Patient Care Pathway
CXBLADDER IN THE PATIENT CARE PATHWAY VALUE PROPOSITION Cxbladder Cxbladder Cxbladder TRIAGE DETECT MONITOR Typical Primary Care Physician Urologist Urologist (CxbT) (CxbD) (CxbM) standard of Patient presents with Current guidelines for Monitor for recurrence hematuria and clinician hematuria evalua
Slide 12: Urothelial Cancer Is a Significant Global Healthcare Challenge
UROTHELIAL CANCER IS A SIGNIFICANT GLOBAL HEALTHCARE CHALLENGE ~570K 6TH Annual cases Most common and growing1 cancer in men1 US$7.7b Total Addressable Market (TAM)* ~210K >70% Market opportunity TAM ($US) Annual Recurrence2 United States $3.5bn deaths1 Americas (non-US) $0.5bn EMEA (w/o most of Afr
Slide 13: Operational and Financial Performance
OPERATIONAL AND FINANCIAL PERFORMANCE
Slide 14: Strong Growth in Use in Pacific Edge's Largest Market
STRONG GROWTH IN THE USE PACIFIC EDGE’S LARGEST MARKET CXBLADDER USED ACROSS THE US AMERICAS QUARTERLY TEST VOLUMES1 Americas’ Commercial Testing represent 84% of FY22 volumes 7,000 68.7% CAGR 6,073 6,000 5,290 5,000 4,706 4,591 4,277 TEST VOLUMES 4,000 3,824 3,110 3,000 2,791 2,133 2,000 1,000 U.S.
Slide 15: Building the Adoption of Cxbladder by Clinicians
BUILDING THE ADOPTION OF CXBLADDER BY CLINICIANS UNIQUE ORDERING CLINICIANS (US) KEY US PAYORS ACTIVATED 1000 47.5% 894 • Centers for Medicare and Medicaid Services (CMS) 900 CAGR covers more than 61.5m US citizens over 65 and 800 782 people on low incomes 740 689 • >2/3 of patient population covere
Slide 16: APAC: New Zealand at the Forefront with Adoption by Primary Care
APAC: NEW ZEALAND AT THE FOREFRONT WITH ADOPTION BY PRIMARY CARE APAC QUARTERLY TEST VOLUMES1 Commercial tests represent 82% of FY22 volumes 7.4% 1,500 CAGR 1,088 1,079 1,117 1,073 1,074 943 952 982 852 TEST VOLUMES 750 - Pacific Edge now has Cxbladder coverage in 15 of the 20 new Q1 Q2 Q3 Q4 Q1 Q2
Slide 17: Accelerating Investment to Capture the US Opportunity
ACCELERATING INVESTMENT TO CAPTURE THE US OPPORTUNITY 2022 2021 Variance Change • Operating revenue growth of 49% Year to 31 March $000 $000 $000 % • Operating expenses up 37%, with sales and marketing making up 56% of this Operating revenue 11,445 7,701 3,744 49% growth as we invest in future growt
Slide 18: The Future: Pacific Edge Investing for Growth
THE FUTURE: PACIFIC EDGE INVESTING FOR GROWTH
Slide 19: Framing Our Investment Program
FRAMING OUR INVESTMENT PROGRAM INPUTS OUTPUTS RESEARCH EXCELLENT PATIENT EXPERIENCE OUR PEOPLE AND AND ACCURATE RESULTS INNOVATION EARLY DETECTION AND OUR PROCESSES CLINICALLY ACTIONABLE DATA OUR IP, KNOWLEDGE INNOVATION PIPELINE FOR AND EXPERIENCE CLINICAL APPLICATIONS ADOPTION, EVIDENCE, OUR CLINI
Slide 20: Research and Innovation: Understanding the Entire Commercialisation Pathway
RESEARCH AND INNOVATION: UNDERSTANDING THE ENTIRE COMMERCIALISATION PATHWAY RESEARCH & INTELLECTUAL TECHNOLOGY PRODUCT INNOVATION PROPERTY COMMERCIALISATION FOCUS AREAS: 1. Evaluate ‘product concepts’ to address unmet clinical needs through market research and scientific/clinical advisory boards 2.
Slide 21: Evidence, Coverage and Guidelines: Change Clinical Practice
EVIDENCE, COVERAGE AND GUIDELINES: CHANGE CLINICAL PRACTICE FOCUS AREAS: Generate high-quality clinical validation and utility evidence through clinical studies Use Clinical Utility evidence to: EVIDENCE • Drive the adoption of Cxbladder by clinicians, COVERAGE AND GUIDELINES insurers and hospitals
Slide 22: Strengthening the Case for Cxbladder in Key Guidelines
STRENGTHENING THE CASE FOR CXBLADDER IN KEY GUIDELINES BEFORE INCLUSION AFTER INCLUSION INCLUSION We use clinical validity and utility We use clinical validity and utility evidence to attract interest from evidence to strengthen the opinion-leading clinicians, and payers, Review language in guidelin
Slide 23: Adoption, Retention and Revenue Generation
3) ADOPTION, RETENTION AND REVENUE GENERATION FOCUS AREAS: 1. Diversify sales process to target Strategic Accounts differently, including education and Key Opinion Leader (KOL) engagement activities by our Medical ADOPTION, Affairs team RETENTION AND REVENUE 2. Drive protocolized adoption of Cxbladd
Slide 24: FY23 Investment Program Linked to Revenue Milestones
FY23 INVESTMENT PROGRAM LINKED TO REVENUE MILESTONES AMERICAS INITIATIVES • Expanding Direct Selling Team • Adding Strategic Account Selling Team • Adding a new Medical Affairs Team • Lifting marketing investment • Improving the Customer experience APAC INITIATIVES • Adding remaining DHBs and positi
Slide 25: Patients: Building the Cx Brand and Advocacy
PATIENTS: BUILDING THE CX BRAND AND ADVOCACY Partnership activity: • Sponsorship of Walk to End Bladder Cancer events The Bladder Cancer around the country and thought leadership and Advocacy Network networking events represents the voice of • Co-development of leading patient resources the patient
Slide 26: A Diverse and Inclusive Performance Culture
A DIVERSE AND INCLUSIVE PERFORMANCE CULTURE BLADDER CANCER AWARENESS MONTH AT PACIFIC EDGE ATTRACTING AND RETAINING TALENT • Building a performance culture through a shared mission and vision • Driving engagement across all departments, and management levels for tenured and new staff • Celebrating a
Slide 27: David Levison, Executive Chairman Pacific Edge Diagnostics USA
DAVID LEVISON Executive Chairman Pacific Edge Diagnostics USA
Slide 28: Spotlight On: Strategies and Tactics for US Market Execution
SPOTLIGHT ON: STRATEGIES AND TACTICS FOR US MARKET EXECUTION
Slide 29: Expanding Capacity and Capability
EXPANDING CAPACITY AND CAPABILITY TARGET US AMERICAS INITIATIVES RELATIONSHIPS • Direct Sales Force: • Up to 9 additional Account Executives and 1 Regional Sales Director to be added to the sales team taking the total to up to 40* 13,790 • New Marketing & Sales Support Managers Practicing (+3 FTE)*
Slide 30: Targeted and Tactical Execution
TARGETED AND TACTICAL EXECUTION ENGAGING WITH AMERICAS INITIATIVES CLINICIANS AND CUSTOMERS • Marketing Activities: • Conference podiums, presentations, posters • Conference advertising/sponsorship 50 • Increased and targeted marcom activities Urology • Customer Experience: conferences • Electronic
Slide 31: Dr Peter Meintjes, Chief Executive Officer
DR PETER MEINTJES Chief Executive Officer
Slide 32: Building Shareholder Value
BUILDING SHAREHOLDER VALUE • We are setting the foundations for strong throughput and revenue growth over the upcoming years. • Operating costs will rise the business, but investment is linked to growth milestones. • We are focused on long-term shareholder value and we are well positioned to deliver
Slide 33: Questions
QUESTIONS CHRIS GALLAHER Chairman
Slide 34: Resolutions
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Slide 35: Bryan Williams, Independent Director
BRYAN WILLIAMS Independent Director
Slide 36: Resolution 1: Re-election of Chris Gallaher
RESOLUTION 1: That Chris Gallaher, who retires by rotation and is eligible for re-election, be re-elected as a director of the company.
Slide 37: Resolution 1: Proxy Votes Received
RESOLUTION 1: That Chris Gallaher, who retires by rotation and is eligible for re-election, be re-elected as a director of the company. Proxy Votes Received FOR OPEN AGAINST TOTAL ABSTAIN 312,476,188 (96.0%) 8,772,307 (2.7%) 4,168,995 (1.3%) 325,417,490 15,039
Slide 38: Chris Gallaher, Chairman
be CHRIS GALLAHER Chairman a biadder 7 PACIFIC EDGE ANCER DIAGNOSTICS COMPAN
Slide 39: Resolution 2: Re-election of Sarah Park
RESOLUTION 2: That Sarah Park, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company
Slide 40: Resolution 2: Proxy Votes Received
RESOLUTION 2: That Sarah Park, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company Proxy Votes Received FOR OPEN AGAINST TOTAL ABSTAIN 315,139,015 (96.9%) 8,795,835 (2.7%) 1,262,324 (0.4%) 325,197,174 235,355
Slide 41: Resolution 3: Election of Tony Barclay
RESOLUTION 3: That Tony Barclay, who was appointed as a Director by the Board during the year, be elected as a Director of the Company.
Slide 42: Resolution 3: Proxy Votes Received
RESOLUTION 3: That Tony Barclay, who was appointed as a Director by the Board during the year, be elected as a Director of the Company. Proxy Votes Received FOR OPEN AGAINST TOTAL ABSTAIN 315,303,523 (97.0%) 8,810,804 (2.7%) 1,062,847 (0.3%) 325,177,174 255,355
Slide 43: Resolution 4: Re-appointment of PricewaterhouseCoopers as Auditor
RESOLUTION 4: To record the re-appointment of PricewaterhouseCoopers as auditor of the Company and to authorise the Directors to fix the auditors’ remuneration for the ensuing year.
Slide 44: Resolution 4: Proxy Votes Received
RESOLUTION 4: To record the re-appointment of PricewaterhouseCoopers as auditor of the Company and to authorise the Directors to fix the auditors’ remuneration for the ensuing year. Proxy Votes Received FOR OPEN AGAINST TOTAL ABSTAIN 313,744,228 (96.4%) 8,803,443 (2.7%) 2,861,689 (0.9%) 325,409,360
Slide 45: Voting
VOTING PACIFIC EDGE Cbiadcer <Y| PACIFIC EDGE
Slide 46: General Business
GENERAL BUSINESS PACIFIC EDGE Cabiadcer "| PACIFIC EDGE
Slide 47: Meeting Close
MEETING CLOSE PACIFIC EDGE Cabiadder —Y|mcinc enc
Slide 48: Appendix
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Slide 49: Pacific Edge: A History of Research-Led Innovation and Growth
1. PACIFIC EDGE: A HISTORY OF RESEARCH-LED INNOVATION AND GROWTH Aug 2021 Cxbladder reaches 70% public healthcare 2012 coverage in NZ 2001 O’Sullivan et al: Pacific Edge Cxbladder Detect Oct 2021 established performance validation Aug 2019 PEB raises $103.5m Journal of Urology Konety et al: Clinical
Slide 50: Urothelial Cancer in the US Market
2. UROTHELIAL CANCER IN THE US MARKET VALUE PROPOSITION Cxbladder Cxbladder Cxbladder TRIAGE DETECT MONITOR 4TH US$4.9B (CxbT) (CxbD) (CxbM) Most common US$220,000 Forecast direct costs cancer in men Average lifetime associated with in the US1 cost2 per patient urothelial cancer in 20202 Patient car
Slide 51: Global Guidelines Pivotal to the Widespread Adoption of Cxbladder
3a. GLOBAL GUIDELINES PIVOTAL TO THE WIDESPREAD ADOPTION OF CXBLADDER Recognition in national guidelines deepens and accelerates commercial use of Cxbladder tests and entrenches coverage by nationally relevant healthcare institutions. • Most influential and largest • Leading urologic authority in Eu
Slide 52: Clinical Evidence Generation Towards Guideline Inclusion (1/2)
3b. CLINICAL EVIDENCE GENERATION TOWARDS GUIDELINE INCLUSION (1/2) STUDY AIM LOCATIONS ENROLLED STATUS** SITES* US Primary study Prospective, single-arm, observational study to develop clinical evidence for Cxbladder tests in USA 12/12 Enrolment complete facilitating early detection, intensifying or
Slide 53: Clinical Evidence Generation Towards Guideline Inclusion (2/2)
3c. CLINICAL EVIDENCE GENERATION TOWARDS GUIDELINE INCLUSION (2/2) STUDY AIM LOCATIONS ENROLLED STATUS** SITES* DEDUCT DEtection of Disease in the Upper traCT USA 0/4 Pilot data analysed in early 2024 – Prospective, single-arm, observational study to validate performance of Cxbladder for the decisio
Slide 54: For More Information
FOR MORE INFORMATION: Dr. Peter Meintjes Chief Executive Officer email: peter.meintjes@pelnz.com Grant Gibson Chief Financial Officer email: grant.gibson@pelnz.com Pacific Edge 87 St David Street, PO Box 56, Dunedin, New Zealand P +64 3 479 5800 F +64 3 479 5801 email: investors@pacificedge.co.nz ww