Orexo Ab · OMXSTO:ORX
Orexo Ab — Redeye Digital Investor Forum (March 2020)
24 slides from Orexo Ab's conference presentation, Mar 19, 2020
Slide 1: Redeye Digital Investor Forum, March 19, 2020
Develops and commercializes improved pharmaceuticals and digital therapies – with the aim of becoming a leader within the treatment of addiction Redeye Digital Investor Forum, Nasdaq Stockholm: ORX US OTC Market: ORXOY (ADR) March 19, 2020
Slide 2: Legal Disclaimer
Legal Disclaimer • This presentation, which is personal to the recipient, has been prepared and produced by Orexo AB (publ) (“Orexo”) solely for the benefit of investment analysis and may not be used for any purpose other than assessment of investments concerning Orexo. Unless otherwise stated, Orex
Slide 3: Orexo develops and commercializes pharmaceuticals and digital therapies
Orexo develops and commercializes pharmaceuticals and digital therapies • Focuses on treatment of addiction in all phases, from prevention Corporate Headquarters (Uppsala, Sweden) to treatment Corporate functions and • Broad pipeline with multiple assets based on innovative Development drug delivery
Slide 4: 2019 delivered the strongest financial results ever
2019 delivered the strongest financial results ever Group net revenues Growth SEK 845 m 8% 85% from Zubsolv® (Zubsolv® 16%) Group EBITDA Growth SEK 272 m 133% US EBIT Growth SEK 351 m 77% Cash position Positive net cash position SEK 817 m SEK 527 m 7
Slide 5: Profit contributions from Zubsolv enable building a broader and stronger Orexo
The profit contributions from Zubsolv® enables investments in building a broader and stronger Orexo Broaden… Establish ..the portfolio of commercial products to be ..a new revenue generating business area promoted by our existing US organization in within Digital Therapeutics (DTx) and launch 2020 f
Slide 6: Growing the Zubsolv franchise
Growing the Zubsolv® franchise
Slide 7: Full year market growth of 14% 2019 vs 2018 continues in Q1
Full year market growth of 14% 2019 vs 2018 continues in Q1 New market definitions to be applied by Orexo Market Volume Sales Q1 YTD Growth Quarterly NTRx Total Market: +14% 2 000 000 By Segment 1 800 000 Open +14% 1 600 000 Non-reimbursed +13% 1 400 000 1 200 000 Definitions Payers / Market Access
Slide 8: Zubsolv growing in open business, but overall volume declining
Zubsolv® growing in the open business, but overall volume declining from competition in former exclusive contracts Open Market Access UHC/Humana/Cash Non-Reimbursed Market Changes From year 2019 to 2020 Zubsolv® NTRx YoY Q1TD (thousands) • Generic film introduced late 52 52 Feb 2019 48 - UHC/Humana
Slide 9: Zubsolv growth in open business explained by unrestricted access to PBMs
Zubsolv® growth in open business explained by unrestricted access to all large national commercial PBMs Prescription incremental growth to major national PBMs Zubsolv® NTRx YoY Q1TD (thousands) Total increase of 2,759 NTRx year-to-date 2 229 Opportunity to continue to grow business and to translate
Slide 10: Several possible triggers for Zubsolv growth in 2020 and beyond
Several possible triggers for Zubsolv® growth in 2020 and beyond Continued improved market access …Orexo continues to aggressively pursue expanding market access in Medicare and Medicaid …Largest branded competitor likely to lose reimbursement over time Competition from “the preferred” authorized ge
Slide 11: A pipeline with significant future potential
A pipeline with significant future potential
Slide 12: Pipeline addressing large markets with significant patient needs
Pipeline addressing large markets with significant patient needs Phase Approved/Launched Exploratory Preclinical Registration 1 2 3 US EU RoW Commercial products Opioid Use Disorder Zubsolv® Abstral® Breakthrough Cancer Pain, Kyowa Kirin Insomnia Edluar® Mylan Worldwide Development projects OX124 Na
Slide 13: 3 convincing development assets addressing critical unmet needs
3 convincing development assets addressing critical unmet needs OX124 – opioid overdose OX125 – opioid overdose OX338 – non-opioid pain A powerful rescue A rescue medication to A non-opioid pain killer medication, designed to reverse opioid overdoses, with opioid-level efficacy reverse opioid overdo
Slide 14: DTx – new frontiers in patient care
DTx – new frontiers in patient care
Slide 15: In a few months….
In a few months…. Patients …suffering from alcohol misuse will have access to a new digital therapy, vorvida®, which replaces the need for frequent visits to a counsellor during treatment ….will get their digital therapy reimbursed by their insurance company, just like any other medical intervention
Slide 16: Regulatory and payer landscape is starting to adopt digital therapy
The regulatory and payer landscape is starting to adopt digital therapy … Significant movement in both US and Europe The two largest PBMs are reducing barriers for DTx The Digital Health Software Pre-certification Express Scripts is placing companies, offering (Pre-Cert) Program is part of an effort
Slide 17: … but digital therapy is in its infancy
… but digital therapy is in its infancy Commercialization Reimbursement • Optimal pathways to commercialize and scale DTx are • Many payers still to establish payment and still unchartered reimbursement processes Pricing Disruptive technology • Entry barriers are low for offerings without clinical e
Slide 18: Pricing of digital therapy is scattered
The pricing of digital therapy is scattered, with significant differences driven by sophistication and clinical evidence High Counselling reSET = ca $1000 reSET-O = ca $1600 Price Level TBD Low None CLINICAL EVIDENCE Robust Pricing of Orexo DTx expected in the range of USD 600-1,000 per treatment 18
Slide 19: Two digital therapies with potential to disrupt substance use disorder treatment
Two digital therapies with the potential to disrupt the current treatment of substance use disorder in the US vorvida® OXD01 A fully automated digital therapy scientifically “Digitizing” counselling at scale to offer with proven to reduce trouble-some drinking patterns in Zubsolv®, a full medication
Slide 20: Outlook
Outlook OrexoO
Slide 21: Limited impact from the COVID-19 virus currently
Limited impact from the COVID-19 virus currently1 Development Supply Sales Finance OX125 - Preparations for Zubsolv® - Manufacturing Zubsolv® and vorvida® - Orexo has SEK 817m in cash first clinical trial progress as of Zubsolv® is solely done in Sales calls have been and a profitable operations pla
Slide 22: 2020 a year with a steady news flow expected
2020 a year with a steady news flow expected Q2 Q3 Q4 › FDA clearance of vorvida® › Launch of vorvida® › Initiation of OX124 pivotal › Patent for nasal spray › FDA decision on fast track trial technology designation of OX124 › OX125 exploratory study › OXD01 development finished 22
Slide 23: Investment thesis
Strong value drivers for long-term growth 1. Addressing large markets 2. Strong financial position and with significant patient needs profitability Investment Focusing on becoming a leader within the large and growing space of addiction, Fueled by the sales of the lead product Zubsolv® which will co
Slide 24: Thank You!
Thank You! IR Contact: Lena Wange, IR & Communications Manager, ir@orexo.com. For more information please visit www.orexo.com. You can also follow Orexo at Twitter @orexoabpubl, LinkedIn and YouTube