Slide 1: 1H24 Results Investor Briefing
ASX Announcement 22 February 2024 1H24 Results Investor Briefing Cogstate Ltd (ASX:CGS) has today released an Investor Briefing that provides a summary of the financial results For personal use only for the half year ended 31 December 2023 and also provides commentary in respect of the business and
Slide 2: Important Notices
Important Notices Past performance Past performance is given for illustrative purposes only and should not be relied upon as (and is not) an indication of Cogstate's views on its future financial performance or condition. Past performance of Cogstate cannot be relied upon as an indicator of (and pro
Slide 3: Investor Presentation February 2024
For personal use only Investor Presentation February 2024 PRESENTED BY Brad O’Connor Darren Watson Rachel Colite CEO CFO EVP, CLINICAL TRIALS © 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 nature and does not purport to be complete, nor does it contain all the information which would be required in a prospectus prepared in accordan
Slide 5: Cogstate Well Positioned
Cogstate Well Positioned For personal use only 1 2 3 Positive Macro Trends Unique Offering Financial Strength CNS / Neuro Growth Tech & Expertise Reliable Financial Model We expect that investment in Cogstate is a trusted provider of Profitable, notwithstanding flat central nervous system / best-of-
Slide 6: CNS / Neuro as a Growth Engine
CNS / Neuro as a Growth For personal use only Engine We expect that Central Nervous System (CNS) / neurological disorders will be a growth area for pharma/biotech investment and clinical trials activity driven by: 1. Increase in positive clinical data. 2. A friendlier regulatory & reimbursement envi
Slide 7: CY2023 Sales Delays
CY2023 Sales Delays For personal use only Alzheimer’s disease pause • Leading companies focused on regulatory submission • Early stage trials by new names Rare disease – smaller opportunities CY2023 Review • Significant success in CNS indications • Cogstate strength and area of focus for biotechs •
Slide 8: CY2024 Growth Drivers
CY2024 Growth Drivers • Next generation assets with amyloid focus for early For personal use only Alzheimer’s Disease CY2024 • Tau mono & combination therapies trials start later in CY2024 Sleep Disorders • Post-marketing trials expected to increase in line with approvals • Pre-screening needs will
Slide 9: CY2024 Growth Drivers: Sleep Disorders
CY2024 Growth Drivers • Orexin is an exciting area of sleep disorder research For personal use only Alzheimer’s Disease • Multiple late-stage program initiations planned in multiple indications Sleep Disorders Cogstate Advantage • Cogstate assessment primary endpoint in phase III Mood Disorders CY20
Slide 10: CY2024 Growth Drivers: Mood Disorders
CY2024 Growth Drivers • Trial initiations increasing with new mechanisms (fast For personal use only Alzheimer’s Disease acting, increased durability) Cogstate Advantage Sleep Disorders • Investment in expanded, scalable training and certification assets • Remote rating solution; encouraged by regul
Slide 11: CY2024 Growth Drivers: Rare Disease
CY2024 Growth Drivers • Unprecedented phase 2 trial successes leading to phase 3 For personal use only Alzheimer’s Disease activity Cogstate Advantage Sleep Disorders • Key Opinion Leader (KOL) • Longstanding involvement in multiple phase 2 programs Mood Disorders CY2024 Key Growth Drivers Rare Dise
Slide 12: Technology & Expertise
Technology & Expertise For personal use only Inch wide, mile deep • Specialist provider of best-of-breed solutions Deep relationships • Trusted partner for delivery of global solutions to strategically important programs Able to leverage technology • License fees only ~18% of revenue, but digital as
Slide 13: Competition with approved therapies
Competition with approved therapies The launch of new therapies will provide patients with an option to go onto treatment immediately. That option has For personal use only never existed previously. Alzheimer’s Trial More trials = more patients needed Challenges As new companies begin Alzheimer’s R&
Slide 14: Industry Dynamics – Alzheimer's Treatment
Industry Dynamics – Alzheimer’s Treatment For personal use only Individual control Right patient, right Waiting lists are Biomarkers are Trial off-ramps time the enemy critical People want agency Earlier treatment Patients will get Blood and digital Out-of-pocket costs over their brain provides bett
Slide 15: Healthcare Offering
Healthcare Offering For personal use only Eisai to launch Cognigram to USA physicians in coming weeks. Cognigram launch in USA Prescription of new therapies in USA requires much more than just cognitive assessment • Complex differential diagnosis • Consultation with loved ones/care givers • Confirma
Slide 16: Financial Strength: A focus on profitable growth
Financial Strength: A focus on profitable growth For personal use only • Proforma financial model provides management with clear guidelines: – Clinical Trials at 55%-60% margins – Healthcare at higher SaaS margins – Stable cost base – When achieved, EBITDA 25%+, EBIT 20%+ with leverage over stable c
Slide 17: 1H24 Financial Highlights
1H24 Financial Highlights (All figures in US$) For personal use only Clinical sales contracts executed Contracted future revenue $10.9m $123.7m Alzheimer’s disease represented 62% of -60% the value of contracts executed in 1H24 -16% Low new contract sales Group Revenue Profit before Tax $20.2m $2.1m
Slide 18: Cogstate Group
For personal use only Cogstate Group US$ millions 1H’24 1H’23 YTY % Highlights Revenue 20.2 19.5 3% • Revenue growth resulting from Clinical Trials Gross Profit 10.8 9.1 19% • Improving gross profit GP% 54% 47% 7% Pts margin resulting from May 2023 restructuring actions Operating Expense (7.6) (8.1)
Slide 19: Segments
Segments Clinical Trials (including Research) Highlights For personal use only Clinical Trials US$ millions 1H’24 1H’23 YTY % • Growth in revenue, though Revenue 17.9 17.3 3% impacted by low 2H’23 new contract sales Direct Costs (6.8) (7.5) 9% • Improving gross profit margin SG&A (2.1) (2.0) (1%) wi
Slide 20: Cash Flow
Cash Flow US$ millions 1H’24 1H’23 YTY % Highlights For personal use only Net Profit after Tax 2.0 0.1 n/a • Decline in receipts from Depreciation & Amortization 1.4 1.3 12% customers Disposal of Assets 0.0 0.2 n/a • Lower payments to employees following May Non-cash employee benefits 0.7 0.8 (8%) r
Slide 21: Future Contracted Revenue Run-Off
For personal use only Future Contracted Revenue Run-Off Highlights • FY24 revenue under contract of $36.7 million of which $20.2 is 1H24 actual. • FY25 revenue under contract of $35 million, up marginally from prior period compare, largely a result of movements in existing projects. • FY26, FY27 and
Slide 22: Share Buyback
Share Buyback For personal use only Additional on-market Share Buyback for up to 5 million of Cogstate ordinary shares • Previous Share Buyback from 28 February 2023 to 4 December 2023 • 3,753,218 ordinary shares at a total cost of A$5,589,131 acquired on-market Reflects the belief in the business’
Slide 23: Recap of Growth Drivers
Recap of Growth Drivers For personal use only Short Term Medium-Long Term • Improvements in Clinical Trials sales contracts • CNS / Neuro as a growth area in clinical trials necessary precursor to revenue growth • Increased R&D activity in Alzheimer’s is the • Previously reported increase in sales a
Slide 24: FY24 Guidance
FY24 Guidance For personal use only Customer engagement on new clinical trials expected to remain strong, particularly in Alzheimer’s disease. Expect improved clinical trials sales bookings in 2H24 compared with 1H24, as increased sales pipeline activity starts to deliver. The revenue impact of the
Slide 25: For personal use only
For personal use only