Avacta Group Plc · LSE:AVCT
Avacta — H1 FY2012 Earnings Presentation
24 slides from Avacta's earnings presentation, Apr 25, 2012
Slide 1: Avacta Group plc Interim Results
Avacta Group plc! Innovation for global health! Interim Results! 25th April 2012!
Slide 2: Important Notice
Important Notice! This presentation does not constitute a recommendation regarding the shares of Avacta Group plc (the “Company”) nor a representation that any dealing in those shares is appropriate. The Company accepts no duty of care whatsoever to the reader of this presentation in respect of its
Slide 3: Avacta Overview
Avacta Overview!
Slide 4: Innovation for Global Health
Innovation for Global Health! Tools to help drive down the cost of healthcare! Our purpose is to drive down the cost of healthcare around the world by providing better tools to help reduce the cost of drug development and to improve diagnostics.! High Pressure from insurers! Wrong/ cost of delayed d
Slide 5: Market Strategy
Market Strategy! Large healthcare markets with high growth potential! Our market strategy is to build from largely unregulated markets towards the more highly regulated, but higher value, human diagnostics market.! Biopharmaceuticals! Veterinary Health! Human Health! ! ! ! • $202bn market by 2013! •
Slide 6: Product Strategy
Product Strategy! End user driven product development from discovery to diagnostics! ! Our product strategy is to combine high technology, consumables and reagents to provide better tools that help reduce the costs and risk of drug development and that provide improved diagnostics.! Our Products and
Slide 7: Current Products
Current Products! Better tools for drug development and diagnostics! Optim 1000 Protein Analysis System! AX-1 Rapid Blood Testing System! ! ! Optim 1000 is the only product that allows AX-1 allows laboratory standard blood detailed stability analysis of biological tests, not cut down versions, to be
Slide 8: Acquisition of Affinity Reagents Platform
Acquisition of Affinity Reagents Platform! Connecting Avacta’s markets from discovery to diagnostics! • Antibodies are the major class of affinity reagents with multiple markets worth over $300bn! • Avacta acquired the Affimer affinity reagents platform in January 2012! • Affimers are not based on a
Slide 9: Management Team
Management Team! Extensive commercial experience and world class technical expertise! Group Chief Executive and Chief Finance Officer! Chief Executive! Chief Executive ! Founder ! ! Avacta Analytical ! Avacta Animal Health! Dr Alastair Smith ! Tim Sykes! Chris Dryden! Ged Holmes! ! ! ! ! World class
Slide 10: Outlook
Outlook! A solid base with huge growth potential in diagnostics! • Good growth towards breakeven of core businesses with AX-1 to come! • Fully funded to execute an accelerated growth programme with two huge potential opportunities :! Huge Growth Potential in Diagnostics! 1. Significant growth potent
Slide 11: Business Update
Business Update!
Slide 12: Interim Results for the Period Ended 31st January 2012
Avacta Group plc! Interim Results for the Period Ended 31st January 2012! ! Solid growth in underlying revenues and significant reduction in operating losses! ! H1 FY12! H1 FY11! FY11! £m! £m! £! Revenues! 1.72! 1.00! 2.45! Gross profit! 0.96! 0.50! 1.18! Gross margin! 55.7%! 50.1%! 48.2%! Overhead!
Slide 13: Balance Sheet and Cash Flow at 31st January 2012
Avacta Group plc! Balance Sheet and Cash Flow at 31st January 2012! Cash flow extracts! 31/1/12! 31/1/11! 31/7/11! £m! £m! £m! Operating cash flow! (0.26)! (0.36)! (0.59)! Investing activities! (0.57)! (0.44)! (1.02)! Financing activities! 4.87! 1.88! 1.95! Net cash flow! 4.04! 1.09! 0.34! Balance s
Slide 14: Commercial Highlights
Commercial Highlights! Solid growth in Optim sales and pipeline; AX-1 expected to ship this FY ! Analytical Business Unit! H1 2012! H1 2011! 8! 12! Optim Despatch! 13! 8! 7! Optim Installed Base! 27! 10! Optim Revenue! £0.70m! £0.19m! Consumable Revenue! £0.11m! £0.02m! Optim 1000 Installed Base (27
Slide 15: Growth Drivers
Growth Drivers! Key performance indicators for FY2012/13 ! Analytical Business Unit! Animal Health Business Unit! Optim ! AX-1 ! • Sales target 25 (FY12) - installed base 39! • Shipping first units during FY12! – Currently 16 units despatched this FY! - Delayed but still on track for shipping • Dist
Slide 16: Other Newsflow in the Period
Other Newsflow in the Period! • Appointment of Ged Holmes as CEO of Avacta Animal Health, September 2011! • Expansion of Optim distribution into SE Asia through Pall Life Sciences, October 2011! • Appointment of Panmure Gordon, October 2011! • £5M placing and acquisition of affinity reagents platfor
Slide 17: Accelerating Growth Through Innovation and Investment
Accelerating Growth Through Innovation and Investment!
Slide 18: Investment to Accelerate Growth
Investment to Accelerate Growth! End user driven product development from discovery to diagnostics! ! Fully funded to invest in a three year programme :! • AX-1 veterinary test menu expansion ! • New quality control technology for biopharma manufacturing! • New protein microarray drug and biomarker
Slide 19: The Case for Companion Diagnostics
The Case for Companion Diagnostics! Different people respond differently to a given drug treatment! • In many human diseases drugs only Figure!2.!One!Size!Does!Not!Fit!All! work for 50% of patients or fewer! PERCENTAGE!OF!THE!PATIENT!POPULATION!FOR!WHICH! • This results in costly drug A!PARTICULAR!D
Slide 20: The Drug Developers' Perspective
The Drug Developers’ Perspective! New drugs will require development of a companion diagnostic! • The FDA and other regulatory bodies are going to require new drugs to have companion diagnostics to identify those patients who will benefit from the treatment! • The guidance is that the same diagnosti
Slide 21: Protein Microarrays
Protein Microarrays! A discovery/diagnostic tool limited only by reagent availability! • Two dimensional arrays of capture (affinity) reagents used to characterise the protein content of complex samples e.g. blood! .!.! .!.!.!.!.!.!.!.!.!.!.!.!.!.! .!.!.!.!.!.!.!.!.!.!.!.!.!.!.!.!.!.!.!.!.! .! .! •
Slide 22: Affimers
Affimers! Unlocking the potential of protein microarrays with Affimer reagents! • Antibodies are the major class of affinity reagents with multiple markets worth over $300bn! • Avacta’s Affimer reagents are not based on antibodies but on a small protein called Stefin A which has two loops that can b
Slide 23: The Protein Microarray Opportunity
The Protein Microarray Opportunity! A non-capex driven high margin revenue stream! Global Biochip (DNA Microarrays, LabonChip, Protein Microarrays, Tissue & Cell Arrays) Market: Trends & Forecast (2010 – 2015)! “ The global protein microarray market was valued $595 million in 2010 and is expected to
Slide 24: Summary
Summary! A solid base and fully funded to accelerate growth! • Proprietary technology products with recurring consumables and reagents revenue! • First phase of product development completed! • Good growth in revenue and contribution from AX-1 yet to come! • Two operating businesses entirely focused