Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Elron Electronic Industries — Investor Presentation (March 2014)
33 slides from Elron Ventures's investor presentation, Mar 12, 2014
Slide 1: Discover. Innovation
DISCOVER. INNOVATION
Slide 2: Disclaimer
This presentation is for information purposes only. By this presentation, Elron does not intend to solicit offers to purchase its securities and the presentation does not constitute an invitation to receive such offers. Elron may make improvements and/or changes in the features or content presented
Slide 3: Elron. Seeking to change the face of healthcare
ELRON. SEEKING TO CHANGE THE FACE OF HEALTHCARE
Slide 4: Med-tech portfolio and investments since 2009
STROKE CARE BRAINSGATE 30% MICROBIOLOGY POCARED 41% AMD NOTAL VISION 22% HEART FAILURE KYMA 29% ORTHOPEDICS CARTIHEAL 32% § $569m in exit proceeds since § $91m invested in med-tech companies since 2009 § 2009-2013: $69m profit § Also- the acquisition of Given Imaging at a value of $1b was completed
Slide 5: Elron shares, market cap and major shareholders
§ Elron shares are traded on the TASE and OTC in the U.S. § Market cap (Mar. 9, 2014): $286m § Indexes: Biomed, Midcap TA, Mid50, Bluetech § Major shareholders: DIC (50%), Yalin Lapidot (10.8%), Meitav Dash (7.2%) § >50% increase in institutional ownership over the last 5 years § 85% return over the
Slide 6: Elron. Results
ELRON. RESULTS
Slide 7: Exit proceeds 2009-2013
§ 2009-2013: ~$285m in exit proceeds § Also- $284m in proceeds were received in the sale of Given Imaging in Feb. 2014 June 2009 Oct. 2009 May 2010 June 2010 Sept. 2011 Nov. 2011 Nov. 2012 Feb. 2014
Slide 8: Cumulative profit since Q3/09
§ The cumulative profit since Q3/09: $88m § The projected profit in Q1/14 from the Given Imaging exit: $107m
Slide 9: Cumulative cash flow and net cash balance
§ Cumulative cash flow since Q2/09: $67m § $15m dividend distributed § $51m in loans repaid to banks and controlling shareholders § Net cash balance following the Given Imaging exit: $217m (plus $70m in RDC after tax)
Slide 10: Elron.
ELRON.
Slide 11: RDC: joint holding with Rafael
§ RDC: jointly held by Elron (50.1%) & Rafael (49.9%) § The Rafael-Elron agreement is exclusive and indefinite § The agreement is in effect as long as Elron maintains a holding in RDC § $70m invested by RDC in companies since 2009 § $232m in exit proceeds since § $123m in profits since 2009
Slide 12: The case of Given Imaging
§ Given Imaging was established in 1993 by RDC § RDC’s total investment in the company: $6.1m § Q1/14: the company’s acquisition by Covidien for $30 per share in cash § The consideration represents a $1b valuation § Our share in the consideration: Elron- $204m, RDC- $80m THE CASE OF GIVEN IMAGING
Slide 13: Elron. Promise
ELRON. PROMISE
Slide 14: BrainsGate: ischemic stroke treatment
Treatment of ischemic stroke in a 24 hour window post symptom onset Current treatment (tPA protein) is approved for use during a 3-4.5 hour window only BrainsGate’s treatment is based on electrical stimulation of the SPG (a nerve center behind the nasal cavity) using a miniature electrode The electr
Slide 15: BrainsGate clinical trial status
In 2010 BrainsGate completed a clinical trial on 300 patients whose results strengthened the assessment that the treatment is effective and safe BrainsGate is conducting another clinical trial that is expected to support its planned PMA submission to the FDA To date, BrainsGate has enrolled over 410
Slide 16: BrainsGate vs. tPA treatment
Restores blood flow to the blocked blood vessel Due to the temporary interruption in blood flow, the blood vessel becomes brittle In addition, the treatment compromises coagulation The risk of hemorrhage just 3 hrs after stroke onset increases 10X Electrical stimulation induces dilation of cerebral
Slide 17: Pocared: infectious disease diagnosis system
Real-time and automated system for infectious disease diagnosis, based on optical technology Designed for use by major microbiological laboratories and hospitals Meant to replace bacteria culturing (the current diagnosis method) which is expensive, labor-intensive, & time- consuming The system’s fir
Slide 18: Pocared trial and CE certification
The system is CE certified since December 2011 Pocared is conducting a trial at 5 of the world's leading medical centers The trial’s purpose is to test the efficacy of the system's 1 st application, UTI diagnosis, and is expected to support Pocared’s planned FDA submission To date, Pocared has colle
Slide 19: Elron. Innovation
ELRON. INNOVATION FROM 48 HRS TO 48 MIN itil HI ci ‘ acomplete cartridge transfercarouselto urine sample cartridge carousel optical analyzermodule =o my
Slide 20: Notal Vision: remote AMD monitoring
Remote monitoring of patients at risk of vision loss from AMD AMD destroys sharp, central vision, necessary for common tasks such as facial recognition, driving, reading, & watching television There are 2 types of AMD, dry (non-neovascular) and wet (neovascular); about 90% of blindness is associated
Slide 21: Notal Vision NEI study and marketing
The National Eye Institute invited Notal Vision to conduct a study of 1500 patients in 44 major U.S. retinal centers Due to positive clinical results at the interim analysis, the NEI terminated the study early The findings demonstrated that ~90% of patients who used the device maintained functional
Slide 22: ForeseeHome device
Notal Vision website: http://www.notalvision.com/ The device detects even small changes in vision The Data Monitoring Center alerts patient & doctor
Slide 23: CartiHeal: cartilage repair implant
Implant for repairing cartilage and osteochondral defects in loadbearing joints, such as the knee The implant has a unique structure , comprising of marine aragonite with biological modifications The implant biodegrades in the implantation site, and promotes the regeneration of native (hyaline) cart
Slide 24: CartiHeal CE certification and trials
The implant is CE certified since April 2011 Preclinical studies demonstrated cartilage & bone regeneration at the implantation site The company is conducting a series of clinical trials at well- known cartilage repair centers in Europe to test the implant’s safety and efficacy ~ 35m people in the U
Slide 25: Day post-op, months post-op
1 day post-op: 6 months post-op:
Slide 26: Kyma: remote CHF monitoring system
A system for continuous remote monitoring of CHF patients The system is built around a non-invasive and very small sensor attached to the patient Based on unique radar technology (RFIC) that enables direct & precise measurement of fluid in the lungs The device is intended to enable early treatment o
Slide 27: Kyma CE certification and FDA submission
The device is CE certified for hospital use since October 2013 The company is conducting a series of clinical trials in diverse treatment settings (ICUs, CHF units, nursing homes, & others) The purpose is to analyze the costs involved in treating these patients with and without Kyma’s device The tri
Slide 28: Elron. Innovation
ELRON. INNOVATION KEEPING TRACK OF mes ai YOU... Cog a
Slide 29: Anticipated developments 2013-2015
§ 2013-2015: significant developments anticipated in Elron’s companies patients recruited patient recruitment completed PMA submission 4500 UTI samples collected 15,000 UTI samples collected, FDA submission 1000 paying customers, reimbursement code in place NEI study stopped due to efficacy study co
Slide 30: Holdings, book value and market value
Holdings in companies 1 Book value at Dec. 31, 2013 ($m) Amount invested ($m) Associates and consolidated companies 2 : Pocared 2.1 28.9 BrainsGate 1.0 21.2 Others 6.6 16.3 Companies presented at fair value: Notal Vision 11.0 7.5 Jordan Valley 10.4 8.1 Others 4.7 18.6 Total Holdings 35.8 100.6 Finan
Slide 31: Investment highlights
Proven expertise in identifying opportunities, building technology leaders, and exiting holdings Operational holding company with the flexibility to provide its group companies with long-term commitment Strategic partnership with Rafael - access to state-of-the- art military technologies, and exclus
Slide 32: Quote from Elron's founder
Looking ahead, Elron should always understand that the ever evolving changes in the high tech industry will be exponential, and therefore, success will depend on choosing the right niches in the world market in which it can maintain and improve its relative advantage. Mr. Uzia Galil, Elron’s founder
Slide 33: Elron. Opportunity - Thank you
ELRON. OPPORTUNITY Thank you.
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