Slide 1: FY23 Results Investor Briefing
ASX Announcement 22 August 2023 FY23 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 year ended 30 June 2023 and also provides commentary in respect of the business and financial o
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 Update Including Results For The Financial Year Ended 30 June 2023
For personal use only Investor Update Including Results For The Financial Year Ended 30 June 2023 Presented August 2023 © 2023 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: Our mission: democratize brain health assessment
We are on a mission to democratize brain For personal use only health assessment across clinical research and clinical care... combining proven science with disruptive digital innovation to make the measurement of cognition as simple, standardized, actionable and common as the measurement of blood p
Slide 6: Company Snapshot
Company Snapshot Cogstate was founded in Melbourne, Australia, Cogstate is a leading neuroscience technology company where approx. 22% of our workforce is based. We For personal use only optimising brain health assessments to advance the have a small presence in each of the UK and Japan, but most of
Slide 7: First Alzheimer's Disease Modifying Therapies: Positive External Market Conditions
First Alzheimer’s Disease Modifying Therapies For personal use only Positive External Market Conditions Eisai’s Leqembi received FDA approval 06-Jul-23 US reimbursement of monoclonal antibodies confirmed by CMS following full FDA approval of Leqembi, with requirement for monitoring of patients via C
Slide 8: Cogstate FY23 Year In Review
Cogstate FY23 Year In Review For personal use only Clinical Trial Sales Contracts Declined From Record FY22 • Large Cogstate customers were focused on close out of phase 3 and regulatory submission Ø (now resolved: see prior page) • Biotechs impacted by broader investment market and access to capita
Slide 9: FY23 Financial Highlights
FY23 Financial Highlights (All figures in US$) Impacted by revenue delays and industry dynamics of key trial results and drug approvals For personal use only Clinical sales contracts executed Contracted future revenue $34.0m $132.6m Alzheimer’s disease represented 70% of -59% -5% Low 2H23 Clinical T
Slide 10: FY24 Expectations
FY24 Expectations For personal use only Alzheimer’s Disease • Approval and launch of first disease modifying therapies opens the door to line extension and combination therapy trials Ø Increasing pipeline of opportunities for Cogstate • Brain health awareness and diagnostics will be important as foc
Slide 11: FY24 Growth Drivers
FY24 Growth Drivers The source of the increased proposal activity For personal use only Partnerships in Other Disease Areas Patient Friendly Alzheimer’s Traction in PD, MS, Trial Design Depression, Sleep Existing large customers Trends for decentralised (at Rare & Pediatric (incl. pediatric home) as
Slide 12: Alzheimer's Disease Commercial Opportunity
Alzheimer’s Disease Commercial Opportunity For personal use only Financial Significance Earlier Treatment Benefits Over FY22 & FY23: Timely diagnosis = better health outcomes 24% of the number of sales opportunities Cogstate tests are sensitive to earliest signs 70% of the value of sales contracts B
Slide 13: Short Term Opportunities With Approved Treatments
Short Term Opportunities With Approved Treatments For personal use only Breakthrough Treatment Expect approved treatments to be trialled in: • Lewy body dementia, • Frontal temporal dementia, and • Alzheimer’s disease in Down syndrome Line Extension Expect also combination tau and amyloid treatments
Slide 14: Pre-Symptomatic Disease: Focus Area For Pharma
Pre-Symptomatic Disease : Focus Area For Pharma For personal use only Cogstate Uniquely Positioned Lower amyloid before it causes decline • Analogous to management of cholesterol • In the industry, pre-symptomatic Alzheimer’s is sometimes referred to as pre-clinical Alzheimer’s Cogstate involved in
Slide 15: Growth in Rare Disease Portfolio
Growth in Rare Disease Portfolio Scientific and Operational Expertise in Rare CNS Disease Studies For personal use only Supporting rare genetic neurological disease that impact cognition/development & motor function • Genetic syndromes (e.g., Angelman Syndrome) • Rare seizure disorders (e.g., Dravet
Slide 16: FY23 Financial Performance
For personal use only FY23 Financial Performance 14
Slide 17: Profit & Loss
Profit & Loss US$ Million 1H23 2H23 FY23 FY22 YTY% Revenue decline driven by delays associated with specific issues for a small For personal use only number of trials together with a low second Revenue 19.5 20.9 40.5 45.0 (10%) half new contract sales Decline in contribution margin, driven by Gross
Slide 18: Clinical Trials Sales Contracts
Clinical Trials Sales Contracts FY23 sales contracts • Decline in sales impacted by: For personal use only 90 • large customers focussed on closing out phase 3 trials and subsequent 80 regulatory submissions; 70 • reduced biotech spending related to 60 access to capital. • 70% of the value of FY23 s
Slide 19: Clinical Trials – our established business
Clinical Trials – our established business For personal use only US$ millions 1H23 2H23 FY23 FY22 YTY% FY23 Revenue Revenue 17.1 18.6 35.7 40.3 (11%) • 11% Revenue decline in FY23 due to: Direct Costs (9.1) (8.0) (17.2) (16.2) 5% • delays associated with specific issues on a small number of trials;
Slide 20: Revenue Backlog run-off and coverage
Revenue Backlog run-off and coverage • Clinical Trials backlog $98.0m ($27.7m to be realised in FY24, down from $29.7m PCP) For personal use only • Healthcare backlog $34.7M ($4.2m to be realized in FY24, consistent with PCP). • 84% of FY23 revenue from contracts on hand at beginning of year • Refle
Slide 21: Healthcare – our next frontier
Healthcare – our next frontier Eisai Global & Japan US$ millions 1H23 2H23 FY23 FY22 YTY% License Agreement For personal use only Revenue 2.2 2.2 4.4 4.5 (1%) • $4.2m of revenue recognised in relation to Eisai royalty payments, leaving Direct Costs (0.9) (0.4) (1.3) (1.2) 3% $34.7m to be recognised
Slide 22: Cash Flow
Cash Flow Operating cash flow includes: US$ Million FY23 FY22 YTY% • Decline in EBITDA from prior period. For personal use only EBITDA 5.3 13.0 (59%) • Working capital movement resulting from lower accrued expenses and a lower Working capital movement (3.6) (4.0) (10%) trade receivables balance. Oth
Slide 23: Cogstate is well positioned to return to growth
Cogstate is well positioned to return to growth • Momentum returning - growing opportunity in Alzheimer’s disease For personal use only – Existing customers planning new trials (most with CY 2024 start date) – Expansion of customer base with 3 new large pharma customers – Planning go-to-market for C
Slide 24: For personal use only
For personal use only