Brainsway Ltd · TASE:BWAY
Brainsway — Investor Presentation (December 2018)
27 slides from Brainsway's investor presentation, December 2018
Slide 1: A new era in brain disorder treatment
A new era in brain disorder treatment December 2018
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION OF BRAINSWAY LTD. (“BRAINSWAY”) DOES NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN INFORMATION PERTAINING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE RELIED UPON FOR MAKING ANY COLLABORATION DECISION WITH RESPECT TO BRAINSWAY. THE INFORMATION PROVIDED HERERIN IS PROVIDED
Slide 3: BrainsWay Senior Team
BrainsWay Senior Team Name Title Experience Yaacov Michlin President Chief Executive Officer Director Hadar Levy Chief Financial Officer Dr. David Zacut Chairman Brain Research and Development Services Ltd. Dr. Aron Tendler Chief Medical Officer Joseph Perekupka VP Sales Operations, North America 3
Slide 4: A New Era of Brain Disorder Treatment
A New Era of Brain Disorder Treatment Significant Market Opportunity ✓ 16.2 million Major Depressive Disorder (“MDD”) U.S. adult patients with an $8+ billion annual addressable market ✓ 2.24 million Obsessive Compulsive Disorder (“OCD”) U.S. adult patients with an $800+ million annual addressable ma
Slide 5: Psychiatrists' Tools Have Not Changed Significantly in 50 Years
Psychiatrists’ Tools Have Not Changed Significantly in 50 Years Psychotherapy Era Pharmacotherapy Era TMS Era (1900–1960) (1960–Present) (1985–Future) 5
Slide 6: Transcranial Magnetic Stimulation (TMS) has Demonstrated Safety and Efficacy
Transcranial Magnetic Stimulation (TMS) has Demonstrated Safety and Efficacy An electromagnetic coil is placed over 1 the scalp A fast current is 2 produced in the coil Electromagnetic 3 field is induced in the brain Field is sufficient to depolarize cortical neurons 4 and activate neural networks t
Slide 7: BrainsWay Has Developed Proprietary "Next Gen" Deep TMS
BrainsWay Has Developed Proprietary “Next Gen” Deep TMS Non-invasive ~20 min per session Safe, well-tolerated 4 to 6 weeks to and effective complete 1 course of treatment with additional maintenance treatments as needed Outpatient, with no anesthesia Endorsed by KOLs 7
Slide 8: Deep TMS Has Key Advantages Against Available Focal TMS Solutions
Deep TMS Has Key Advantages Against Available Focal TMS Solutions Neuroimaging Focal TMS(1) Deep TMS (BrainsWay) Focal Depth TMS Limited 1.8 to 3.5cm depth Neuron activation Smaller Extensive BrainsWay’s Structures Less Deep Deep and broad Deep TMS treated Prone to More reliable Geometrical targetin
Slide 9: Technology with Potential to Treat a Wide Range of Brain Disorders
Technology with Potential to Treat a Wide Range of Brain Disorders We believe we are positioned to become the gold standard for non-invasive neuromodulation Cognition and Alzheimer’s – PFC PTSD – PFC(1) ADHD – PFC Smoking & Alcohol – Insula Multiple sclerosis – MC(4) MDD – DLPFC(2) Psychiatry Neurol
Slide 10: "Deep TMS" Technology has Strong Intellectual Property
“Deep TMS” Technology has Strong Intellectual Property Patent Portfolio Key Portfolio Coverage Areas • Issued patents or allowed Deep TMS coils applications: 17 U.S. / 27 Outside U.S. patents expire U.S. 2024-2033 • Pending patent applications: Multi-channel TMS 3 U.S. / 21 Outside U.S. U.S. patents
Slide 11: Large and Underserved Major Depressive Disorder (MDD) Market
Large and Underserved Major Depressive Disorder (MDD) Market 16.2M Adult MDD Patients (U.S. Only) (1) 4.9M Adult MDD patients who have not achieved remission from three or more prior antidepressant medications 3.4M Adult MDD patients with commercial insurance or Medicare coverage $8B Estimated total
Slide 12: Demonstrated Efficacy in MDD
Demonstrated Efficacy in MDD Large scale double blind multicenter trial* • 20 medical centers worldwide Week 5 • N = 212 treatment-resistant Remission Rate After Response Rate After medication-free MDD patients Acute Phase Acute Phase (HDRS-21>=20) • Remission was defined by a total 32.6 38.4 HDRS-2
Slide 13: Underserved Obsessive Compulsive Disorder (OCD) Market
Underserved Obsessive Compulsive Disorder (OCD) Market 2.24M 12-month prevalence(1) 820K Treatment seekers Treatment–resistant 410K seekers Estimated total U.S. $800M annual addressable market(2) (1) The National Institute of Mental Health: www.nimk.nih.gov; (2) Based on existing pricing model of ~$
Slide 14: Demonstrated Efficacy in OCD as an Adjunct Therapy
Demonstrated Efficacy in OCD as an Adjunct Therapy Large scale double blind multicenter trial* • 11 medical centers worldwide Week 6 • N = 94 patients with inadequate 54.8% relief from medications/CBT • Reponse was defined as >30% decrease in YBOCS(1) 38.1% • Partial Response was defined as >20% dec
Slide 15: Ongoing Smoking Cessation and PTSD Multicenter Studies
Ongoing Smoking Cessation and PTSD Multicenter Studies Smoking Cessation Post Traumatic Stress Disorder • 241 subjects were already • 57 patients were randomized randomized compared to original out of 176 plan of 234 subjects • 3 sessions per week for 4 weeks; • 5 daily sessions for 3 weeks; 2 boost
Slide 16: BrainsWay's Pipeline
BrainsWay’s Pipeline Commercial U.S. Patient Indication Exploration Clinical Trials FDA Clearance Launch Population (M) MDD 16 OCD 2 Smoking 38 Cessation PTSD 13 Opioid Abuse 2 Post-Stroke 1 MS 1 In November 2018, BrainsWay was selected to be 1 of 8 participants, out of over 250 applications, in the
Slide 17: MDD is a Global Ailment Affecting Hundreds of Millions
MDD is a Global Ailment Affecting Hundreds of Millions China Europe • 55M Depression patients • 25M Depression patients • 41M Anxiety patients • 25M Anxiety patients Japan • 5M Depression patients • 3.7M Anxiety patients • Signed a binding exclusive India distribution agreement with Japanese distrib
Slide 18: Hybrid Sales & Support Infrastructure
Hybrid Sales & Support Infrastructure Home Office Sales and Marketing & Clinical Personnel Expansion Sales Positions (planned) Field Engineer Expansion Field Engineer (planned) Practice Development 18
Slide 19: BrainsWay Has Multiple Growth Opportunities
BrainsWay Has Multiple Growth Opportunities Multi channel stimulator, Deep TMS with EEG (personalized treatment) PTSD, smoking cessation, opioid abuse and neurological indications such as MS, post-stroke, etc. Expand into Japan and Technology various Asian countries Launched in Pipeline Indications
Slide 20: Business Model
Business Model 20
Slide 21: BrainsWay's Flexible Business Model Leads to Better Adoption
BrainsWay’s Flexible Business Model Leads to Better Adoption Lease: ~60% • Unlimited use with fixed annual fee • 3 to 5 year contracts Risk share model: ~10% MDD • Pay-per-use with minimum annual fee • 3 to 5 year contracts Direct purchase: ~30% • Unlimited use • One time purchase OCD Risk share mod
Slide 22: Deep TMS for MDD is Covered by the Vast Majority of Private Payers and Medicare
Deep TMS for MDD is Covered by the Vast Majority of Private Payers and Medicare Coverage for MDD • All 50 states • ~3.4M patients are covered Reimbursement • Covers MT assist and treatment • Medicare, United Healthcare, Blue Cross Blue Shield, Cigna, Aetna, Tricare sessions • Rates of $200-$500 per
Slide 23: BrainsWay's Leasing Model and Commercial Strategy Has Compelling Practice Economics
BrainsWay’s Leasing Model and Commercial Strategy Has Compelling Practice Economics Leasing, sale and profit-sharing models offer flexible solutions to best meet physicians’ preferences Low capital Leasing model reduces requirement s upfront capital commitment for physicians Increased utilization Pr
Slide 24: Financial Summary
Financial Summary 24
Slide 25: Q3 2018 Review
Q3 2018 Review $4.3M $10.6M Revenue Cash Balance $3M in Q3 17 +42% $11.5M as of Q2 18 $33.7M ($0.9)M Committed Payments Under Operating Income Signed Lease Contracts $4.3M generated in Q3 18 ($1.8M) in Q3 17 88 Head Count 86 as of Q2 18 25
Slide 26: BrainsWay has Demonstrated Consistent Revenue Growth
BrainsWay has Demonstrated Consistent Revenue Growth ($ in millions) $4.3 $3.7 $3.6 $3.6 $1.8 $3.0 $1.5 $1.7 $1.5 $2.4 $2.1 $1.3 $0.8 $0.7 $2.5 $2.3 $1.9 $2.1 $1.6 $1.7 $1.4 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Lease Sale 26 Note: Revenue from leases is inclusive of fixed-fee leas
Slide 27: A new era of brain disorder treatment is finally here
A new era of brain disorder treatment is finally here 27