Slide 1: On a mission to listen to millions of hearts
On a mission to listen to millions of hearts Acarix Q3 2022 Earnings Call November 16, 2022
Slide 2: Disclaimer
Disclaimer This presentation, which should be understood to include these slides, their contents or any part proceeding with any interest. Prospective investors should not treat the contents of this of them, any oral presentation, any question or answer session and any written or oral materials Pres
Slide 3: 2022 3Q Operational Highlights
2022 3Q Operational Highlights • US Reimbursement Code (CPT III) effective from July 1, 2022, with average reimbursement level USD 165 (USD 84 – USD 300), so far. Establishing the reimbursement levels for the new code affected Q3 revenues short-term • Continued expansion of US sales efforts includin
Slide 4: 2022 Q1-Q3 Financial Highlights
2022 Q1-Q3 Financial Highlights Revenue: • SEK 4,169 thousand (SEK 2,832) +47% vs PY • 48 (46) CADScor®System +4% vs PY • 6,252 (5,100) patches +23% vs PY Gross profit: • SEK 3,292 thousand (SEK 2,098) +57% vs PY • Increased Gross Margin of 79% (74%) +7% vs PY Accumulated use of patches Revenues rol
Slide 5: Establishing and securing favorable reimbursement levels, paying up to USD 300 per assessment
Establishing and securing favorable reimbursement levels, paying up to USD 300 per CADScor®System assessment Average reimbursement of $165 per use and increasing 5
Slide 6: High interest among physicians, as we are building a strong US footprint
High interest among physicians, as we are building a strong US footprint Focus on key states with hybrid sales strategy covering 52% of US Chest Pain market • Coverage: • Acarix Sales Team covering 28% of market • Commission-based Sales Agents covering 24% of market • Additional states under conside
Slide 7: Acarix and American College of Cardiology (ACC) announce strategic collaboration
Acarix and American College of Cardiology (ACC) announce strategic collaboration In September 2022, Acarix and ACC entered a strategic collaboration agreement to help accelerate the roll-out of products in the US market. ACC will provide clinical and scientific expertise to Acarix and develop a clin
Slide 8: Going forward - Full focus on US market with key building blocks now in place
Going forward - Full focus on US market with key building blocks now in place • Estimated active market value >USD 10 billion. • Currently, 200 CADScor®Systems in markets and 20,000 assessments completed • Increased FOCUS on US expansion – ideal timing with FDA De Novo Licensing partners clearance a
Slide 9: Acarix commercial focus is now on creating value in large US healthcare market
Acarix commercial focus is now on creating value in large US healthcare market 18 million patients per year FDA De Novo clearance and New Chest Pain Guidelines with chest pain – that want CPT III reimbursement code and endorsement from immediate results for CADScor®System clinical leaders Acarix off
Slide 10: Building strong commercial momentum in US, accelerating growth according to plan
Building strong commercial momentum in US, accelerating growth according to plan Scale-up US Positioning: CADScor®System as first line diagnostic aid, before ACC endorsement and partnership any other non-invasive testing is performed in symptomatic patients First US sales FDA De Novo clearance Produ
Slide 11: Acarix addresses stable chest pain, one of the most common reasons for consulting a physician
Acarix addresses stable chest pain, one of the most common reasons for consulting a physician Every day, approx. 1 million patients globally consult emergency or primary care for chest pain related symptoms, with potential risk of Coronary Artery Disease (CAD)1 20-40% of the population experience ch
Slide 12: CADScor System for rapid cardiac assessment using AI and acoustics
CADScor®System for rapid cardiac assessment using AI and acoustics • Rule-out of CAD in just 10 minutes with 96.2% certainty7 • Based on over 15 years of R&D, and covered by 45 patents. CE-marked and FDA De Novo cleared • Used on more than 20,000 patients The CADScor®System is a point-of-care diagno
Slide 13: Attractive business model with US reimbursement coverage
Attractive business model with US reimbursement coverage CADScor®System Device • Attractive business model with device and innovative single-use patches generating >75% gross margin • Life-Time Value (LTV) of each device in the US market estimated at $75,000 • CADScor®System approved for US reimburs
Slide 14: Illustrative business case – a US Cardiology Clinic
Illustrative business case – a US Cardiology Clinic Typical private cardiology clinic Case for Acarix Win/Win split of net revenue over 3 years (Clinic and Acarix) Clinic 57% Acarix 43% General patient admissions 10,000 Sale of 3 x CADScor®System USD 22,500 per year to cardiology clinic And enabled:
Slide 15: Dr. Marc Bernstein MD, FACC, FCCP, FSCAI New Orleans, Louisiana
Dr. Marc Bernstein MD, FACC, FCCP, FSCAI New Orleans, Louisiana Board Certified Internal Medicine Cardiology & Interventional Cardiology 15
Slide 16: Strategic Focus and 2024 Guidance
Strategic Focus and 2024 Guidance Focus and strategy: 2024 Market Guidance: • Full FOCUS on US commercial execution, with • Installed base of 3,000 direct sales team and commission-based CADScor®Systems, with focus on commercial partners US market • Maximize US reimbursement amounts to drive • Targe
Slide 17: Single-use Patch utilization continues to increase
Single-use Patch utilization continues to increase Accumulated use of patches + 23% Cumulative patch sales • Cumulative patch sales 21,600 patches, +8,100 vs Q3 2021 • During first nine months 2022, sales of patches 6,250 (5,100 PY), +23% vs PY
Slide 18: YTD Revenues Continue to Increase
YTD Revenues Continue to Increase Revenues rolling 12-months (kSEK) Rolling 12-months revenue + 34% • Increase from SEK 3.8M in Q3 2021 to SEK 5.1M in Q3 2022 • Increase in revenue due to increased: - sales of patches - average price of CADScor®Systems and disposable patches
Slide 19: US and patch sales driving increased Gross Margin
US and patch sales driving increased Gross Margin 1 800 80% 1 600 79% 1 400 78% 1 200 77% 76% 1 000 75% 800 74% 600 73% 400 72% 200 71% 0 70% Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Revenue Q3 (kSEK) Gross margin Q3 (%) • SEK 1,164k (1,231 PY), -5% vs Q3 PY • Gross margin 79%, +3
Slide 20: Investments and cash position according to plan
Investments and cash position according to plan Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 0 80 000 70 000 -5 000 60 000 50 000 -10 000 40 000 -15 000 30 000 20 000 -20 000 10 000 0 -25 000 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 EBIT Q3 (kSEK) Cash Position Q3 (kSEK) • EBIT SEK -20,732k (-10,702 PY), an increase in spend
Slide 21: Key Summary Points
Key Summary Points 1. Major milestones achieved in 3Q 2. Momentum in US increasing, based on high interest among health care professionals and ongoing patient evaluations 3. However, slower uptake in US sales during 3Q due to reimbursement process 4. Cost savings during 2023 due to reduced investmen
Slide 22: Q & A
Q&A Visit us at www.acarix.com