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: Discover. Elron
DISCOVER. ELRON
Slide 4: Years of experience identifying opportunities, building technology leaders, and exiting holdings
+ WE HAVE YEARS EXPERIENCE IDENTIFYING OPPORTUNITIES, BUILDING TECHNOLOGY LEADERS, AND EXITING HOLDINGS + WE INVEST PRIMARILY IN EARLY STAGE COMPANIES + WE RELY ON A PROVEN STRATEGY OF HANDS-ON INVOLVEMENT IN THE DAY-TO-DAY OPERATIONS OF OUR GROUP COMPANIES + OUR COMPANIES BENEFIT FROM OUR SKILL AT
Slide 5: Performance in Q1/15
Exit Proceeds, after tax ($m)* Gain ($m) 85.5 66.3 PERFORMANCE IN Q1/15: 269 17.9 114 -8.4 4.4 59 20 4 2010 2011 2012 2013 2014 $4.9M 2010 2011 2012 2013 2014 $10.7M Investments ($m)* Liquid Resources at Year End ($m) 37 36 93.7 $144.1M 18 16 40.7 13 31 21.1 15.7 2010 2011 2012 2013 2014 2010 2011 2
Slide 6: Holdings in companies
Holdings in companies 1 Book value at Amount invested Mar. 31, 2015 ($m) ($m) Associates and consolidated companies: 600 patients enrolled for interim Pocared 14.2 41.8 analysis of FDA trial BrainsGate 1.6 24.5 Others 5.2 20.0 Companies presented at fair value: Notal Vision 13.8 8.5 Sample collectio
Slide 7: Discover. BrainsGate
DISCOVER. BRAINSGATE
Slide 8: BrainsGate: Our investment $25M
2000 OUR INVESTMENT: 2005 $81M $25M Johnson & Johnson, Boston Scientific, Medtronic, Pitango, Cipio Partners To increase the potential number of stroke victims who receive OUR treatment from ~7% to ~80% HOLDING: Electrode used to electrically stimulate a nerve center behind the nasal cavity (the SPG
Slide 9: Interruption of blood flow to the brain
INTERRUPTION OF BLOOD FLOW TO THE BRAIN When blood flow to an area of the brain is cut off When brain cells die, functions controlled by that part of the brain (e.g. memory, muscle control) Blood flow to the brain is blocked by a Blood leaks into the brain from a blood vessel of strokes are ischemic
Slide 10: Stroke survivors left permanently disabled; lifetime cost per patient
Average Lifetime Cost Per Stroke Patient Of STROKE $300 K $450 K SURVIVORS ARE LEFT $130 K $60 K PERMANENTLY $10 K $25 K $25 K DISABLED mRS 0 1 2 3 4 5 6 Sources: Samsa et al, Performing Cost-Effectiveness Analysis by Integrating Randomized Trial Data with a Comprehensive Decision Model: Application
Slide 11: Ischemic penumbra: viable tissue at risk
Cells in the affected area die almost immediately, and cannot be salvaged However, surrounding the blockage are regions of viable tissue at risk – the ischemic penumbra – Source: American Heart Association: Temporal Trends in Patient Characteristics and Treatment With Intravenous Thrombolysis Among
Slide 12: Clot-busting drug
CLOT-BUSTING DRUG • The risk of hemorrhage just 3 hours after stroke onset increases 10X • Certain patients are eligible for treatment up to 4.5 CLOT RETRIEVING DEVICES hours after symptoms first start • tPA is not approved for use after 4.5 hours from stroke onset • MOST PATIENTS DO NOT GET TO THE
Slide 13: Clot retrieving devices
CLOT-BUSTING DRUG • In the past this treatment was used in an 8-hour treatment window, but was not widely adopted due to lack of proven clinical benefit CLOT RETRIEVING DEVICES • 2015: Several large multicenter trials were published showing that treatment with endovascular treatment in a limited tim
Slide 14: Electrical stimulation
CLOT-BUSTING DRUG • Electrical stimulation of the SPG (a nerve center behind the nasal cavity) using a miniature electrode CLOT RETRIEVING DEVICES • The electrode’s activation induces dilation of cerebral blood vessels, and augments cerebral blood flow; without affecting central blood pressure • THE
Slide 15: BrainsGate ISS system and implantation
5 daily stimulation sessions, of 4 hours each The neurologist performs the implantation (which is brief and simple), with the aid of a navigation system GuideView SPG (sphenopalatine ganglion) = supplies parasympathetic innervation to the anterior cerebral circulation and some of the posterior c
Slide 16: BrainsGate conducting trial for U.S. marketing approval of the ISS
BRAINSGATE IS CONDUCTING AN FOR U.S. MARKETING APPROVAL OF THE ISS: Primary outcome Distribution of patients across mRS, according to sliding dichotomous analysis,* at 90 days Study design Multicenter, randomized, double blind, sham control IMPACT-1: pilot study on 98 patients, with promising Estima
Slide 17: Discover. Pocared
DISCOVER. POCARED
Slide 18: Pocared: Our investment $42M
OUR 2004 INVESTMENT: 2007 $42M $82M SCP Vitalife To promote antibiotic stewardship and significantly reduce lab costs OUR by providing a method for rapid infectious diseases diagnostics HOLDING: Rapid and automated microbiology lab system for infectious diseases diagnosis 53% 18
Slide 19: Traditional microbiology testing vs optical fingerprint technology
Since the 19th century, microbiology testing has been done by culturing In the 21st century, developed a technology for automatically bacteria in petri dishes identifying bacteria in body fluids, by identifying their optical “fingerprint” Expensive: Requires reagents and skilled lab technicians Manu
Slide 20: Antibiotic resistance
The use of antibiotics is the single most important factor leading to antibiotic resistance around the world Antibiotics are among the most commonly prescribed drugs Up to 50% of all the antibiotics prescribed are not needed or are not optimally effective as prescribed ILLNESSES EACH DEATHS EACH YEA
Slide 21: Fewer skilled workers, higher throughput, greater efficiency
FEWER SKILLED WORKERS HIGHER THROUGHPUT GREATER EFFICIENCY The average age of the lab workforce in the Testing volumes are increasing per Economic pressures drive the need to U.S. is about , and increasing year, due to factors such as: contain costs while maintaining high tec
Slide 22: P-1000 optical identification of micro-organisms
+ Micro-organisms are identified based on their unique optical signatures in response to different UV wavelengths + Culture-free, lab assistant operated + Gold standard accuracy + A full batch of 42 samples takes 2 hours to diagnose Filtration using “wet foam” technology to The Analyzer employs A re
Slide 23: Diagnosis of urinary tract infection (UTI)
DIAGNOSIS OF URINARY TRACT INFECTION (UTI) THE P-1000 IS IN THE EU; POCARED IS CONDUCTING AN FOR U.S. MARKETING CLEARANCE OF THE P-1000: Primary outcome Agreement of the P-1000 quantification and identification method compared with the standard method (agreement = >90% sensitivity & specificity for
Slide 24: Additional Pocared applications
(streptococci) (MRSA/MSSA) 41m tests in the U.S. annually 8m tests in the U.S. annually clinical validation, ready for clinical feasibility regulatory studies (sepsis) (rapid AST) 50m tests in the U.S. annually NO rapid solution currently available clinical proof of concept clinical feasibility Sour
Slide 25: Discover. Notal Vision
DISCOVER. NOTAL VISION
Slide 26: Notal Vision: Our investment $8.5M
OUR 2000 INVESTMENT: 2002 $8.5M $37M Ganot, Evergreen To save the eyesight of Age-related Macular Degeneration (AMD) OUR patients HOLDING: Home-monitoring system that sends out an alert when a change for the worse is detected in the condition of dry AMD patients 21% 26
Slide 27: Age-related macular degeneration
AGE-RELATED MACULAR DEGENERATION AMD destroys sharp, central vision, necessary for common tasks such as facial recognition, driving, reading, & watching television AMD has 2 stages: “dry” (non-neovascular) and “wet” (neovascular) ~90% of blindness due to AMD is associated with the wet stage AMD PROG
Slide 28: Home monitoring for dry AMD patients
It is not possible to predict who will develop wet AMD, and if so, when Dry AMD patients are monitored once or twice a year, in routine check-ups at the eye doctor Wet AMD can be treated, but due to late diagnosis, 64% of eyes end with dysfunctional vision even after treatment The device is easy t
Slide 29: AREDS2 trial with NIH
AREDS2: Notal Vision conducted a trial in collaboration with the NIH on 1,520 patients in 44 eye clinics: 94% of patients who used the device as directed preserved functional vision at diagnosis vs only 62% of patients using other detection methods 29
Slide 30: Device rental plus monitoring service; reimbursement negotiations
Device rental plus monitoring service for a monthly fee, available to patients with a prescription NOTAL VISION IS IN NEGOTIATIONS WITH CMS PATIENT PAY REIMBURSEMENT AND SEVERAL REGIONAL MEDICARE CARRIERS Installation fee Monthly fee REGARDING COVERAGE Monthly fee AND PAYMENT 30
Slide 31: Discover. Pipeline
DISCOVER. PIPELINE
Slide 32: CartiHeal and Kyma investments
2009 2008 OUR OUR INVESTMENT: 2012 INVESTMENT: 2009 $6.3M $16M $5.7M $18M Accelmed, Access Medical Ganot To halt the progression of knee OUR To keep heart failure patients out of OUR osteoarthritis and delay or prevent knee HOLDING: the hospital by diagnosing edema early HOLDING: replacement Implant
Slide 33: Proven expertise; significant developments anticipated
WE HAVE PROVEN EXPERTISE IN OPPORTUNITIES, TECHNOLOGY LEADERS, AND HOLDINGS WE ANTICIPATE SIGNIFICANT DEVELOPENTS IN OUR MATURE COMPANIES OUR CURRENT MARKET VALUE IS , AND OUR LIQUID RESOURCES BALANCE IS 33
Slide 34: Elron. Opportunity. Thank you.
ELRON. OPPORTUNITY Thank you.