Photocure ASA · OSL:PHO
Photocure ASA — Q3 2017 Earnings Presentation
22 slides from Photocure ASA's earnings presentation, Nov 8, 2017
Slide 1: Results for Third Quarter and First Nine Months 2017
PHOTOCURE ASA RESULTS FOR THIRD QUARTER AND FIRST NINE MONTHS 2017 8 NOVEMBER 2017 Kjetil Hestdal, MD, President & CEO Erik Dahl, CFO
Slide 2: Disclaimer
DISCLAIMER The information included in this Presentation contains certain forward-looking statements that address activities, events or developments that Photocure ASA (“the Company”) expects, projects, believes or anticipates will or may occur in the future. These statements are based on various as
Slide 3: Delivering on Key Objectives
DELIVERING ON KEY OBJECTIVES • US sales revenue up 45% YoY in 3Q and 44% YTD, driven by in-market Increase growth of Cysview in US volume increase in 3Q of 39% and 35% YTD based on increased investment in US • Improved CMS reimbursement for Blue Light Cystoscopy (BLC) with commercial operation Cysvi
Slide 4: Hexvix/Cysview Update
Hexvix/Cysview Update ee nen eee ene ae ey es od
Slide 5: Hexvix/Cysview a Significant Global Specialty Brand
HEXVIX/CYSVIEW A SIGNIFICANT GLOBAL SPECIALTY BRAND Global in-market unit sales (by Q) • Value of in-market sales of Hexvix/Cysview in the third quarter increased 8% YoY to NOK 61 million and 7% YTD to NOK 193 million • Hexvix/Cysview global in-market volume increased YoY 3% in the third quarter, wi
Slide 6: Hexvix/Cysview Two Significant Milestones Reached in 2017
HEXVIX/CYSVIEW TWO SIGNIFICANT MILESTONES REACHED IN 2017 Q3’13 Q2’17 Sep-17 2018 Working closely with CMS1 to provide stronger reimbursement New ruling reducing payment CMS proposes to AUA sends New opportunity for Cysview to hospitals using Cysview, reimburse BLCC recommendation letter to reimburs
Slide 7: Expanded US Market Opportunity Through Supplemental New Drug Application
EXPANDED US MARKET OPPORTUNITY THROUGH SUPPLEMENTAL NEW DRUG APPLICATION KARL STORZ FLEXIBLE BLUE LIGHT VIDESOSCOPE • Seeking approval for expanded use including: ― Combination of Cysview with Karl Storz Flexible Videoscope System, in addition to current Rigid Scope System, for surveillance cystosco
Slide 8: Medicare Reimbursement of an Additional USD 1,000 per TURBT from 2018
MEDICARE REIMBURSEMENT OF AN ADDITIONAL USD 1,000 PER TURBT FROM 2018* Medicare (~55% of TURBT) Private payer (~45% of TURBT) • Procedure fee for cystoscopy • Procedure fee for cystoscopy • Cysview paid at contracted rate (ASP** +6 to Cystoscopy • Cysview paid at ASP** +6% 15%) • No change from 2017
Slide 9: Maximizing Sales Efficiency Targeting Top 25 US Markets
MAXIMIZING SALES EFFICIENCY TARGETING TOP 25 US MARKETS – FOCUS ON 400 MAJOR HOSPITALS Top 25 markets – TURBT rank Example anchor accounts Comments Totals (inpatient & Metropolitan statistical area outpatient TURBT procedures*): Total • Focus efforts to establish and build Cysview business in top 25
Slide 10: Hexvix/Cysview Continued Strong Momentum in US
HEXVIX/CYSVIEW CONTINUED STRONG MOMENTUM IN US • Photocure own sales revenue in the US in 3Q increased Approval in 45% YoY surveillance – Driven by YoY in-market volume growth of 39% in market third quarter Receive – 6th quarter with QoQ sales revenue growth in the US, reimbursement code in Increase
Slide 11: Hexvix/Cysview Solid Position in Nordics Confirmed by Survey
HEXVIX/CYSVIEW SOLID POSITION IN NORDICS CONFIRMED BY SURVEY • Survey among 66 urologists at 41 hospitals in Nordic indicated Hexvix: – Is used regularly by all urologists in Denmark and 67-73% in the other countries in a surgery/operating room setting – Its medical benefits align with TURBT key obj
Slide 12: Hexvix/Cysview Partner Update
HEXVIX/CYSVIEW PARTNER UPDATE • Partner revenue increased 1% YoY in third quarter – In-market unit sales declined 1% due to reduced unit sales In-market unit sales (by Q) all markets except Germany and Austria • Recently formed partnerships: BioSyent in Canada and Juno in Australia/New Zealand – Sig
Slide 13: Continued Flow of Clinical Publications on Medical Benefits
CONTINUED FLOW OF CLINICAL PUBLICATIONS ON MEDICAL BENEFITS OF HEXVIX/CYSVIEW • A «Real-life experience» study performed at single center in UK enrolled 808 bladder cancer patients published in World Journal of Urology – BLC with Hexvix showed reduced disease recurrence rate at 3 years compared to s
Slide 14: Cevira/Visonac Update
Cevira/Visonac Update sec ee ene =e ry i i? ed
Slide 15: Cevira & Visonac Phase 3 Ready Products with Significant Sales Potential
CEVIRA & VISONAC PHASE 3 READY PRODUCTS WITH SIGNIFICANT SALES POTENTIAL • Cevira - Breakthrough single use and fully integrated drug-device technology to satisfy high need for novel non-surgical therapies to treat global epidemic of HPV/HSIL populations • Visonac – Novel topical non-antibiotic/non-
Slide 16: Financials
Financials i uteeuseees — cry i? ed
Slide 17: Segment Performance Third Quarter 2017
SEGMENT PERFORMANCE THIRD QUARTER 2017 MNOK Commercial franchise: Q3 '17 Q3 '16 YTD '17 YTD '16 • Hexvix/Cysview total revenue increased YoY 12% in the Commercial Franchise third quarter, driven by continued strong US revenues Nordic revenues 9.0 8.7 30.4 29.4 US revenues 11.3 7.8 32.3 22.4 • Third
Slide 18: Consolidated Income Statement Third Quarter 2017
CONSOLIDATED INCOME STATEMENT THIRD QUARTER 2017 • Total revenue increases YoY 1% third quarter and 6% MNOK Q3 '17 Q3 '16 YTD '17 YTD '16 YTD Hexvix / Cysview revenues 35.5 31.6 109.6 99.4 • Operating expenses increase YoY 22% third quarter Other revenues 0.2 3.6 1.9 6.2 and 14% YTD Total revenues 3
Slide 19: Cash Flow Third Quarter 2017
CASH FLOW THIRD QUARTER 2017 • Cash flow from operations third quarter NOK -3.4 MNOK Q3 '17 Q3 '16 YTD '17 YTD '16 million, YTD NOK -31.1 million Cash flow from: – Working capital impact YTD NOK -10.7 million - Operations -3.4 -8.6 -31.1 -30.7 (YTD 2016 NOK -22.9 million) - Investments -10.6 -2.9 -1
Slide 20: Balance Sheet 30 September 2017
BALANCE SHEET 30 SEPTEMBER 2017 • Non current assets include NOK 36.3 million in MNOK 30.09 31.12 30.09 investments in tangible and intangible assets and 2017 2016 2016 deferred tax asset of NOK 52.7 million Non-current assets 89.1 74.1 82.0 Inventory & receivables 47.4 43.0 81.4 • No interest beari
Slide 21: Summary
Summary
Slide 22: Delivering on Key Objectives
DELIVERING ON KEY OBJECTIVES • US sales revenue up 45% YoY in 3Q and 44% YTD, driven by in-market volume increase in 3Q of 39% and 35% YTD Increase growth of Cysview in US • US marketing and sales activities on track based on increased investment in US • Improved CMS reimbursement for Blue Light Cys