Myomo Inc. · AMEX:MYO
Myomo — IPO Roadshow (February 2020)
27 slides from Myomo's IPO roadshow presentation, Feb 3, 2020
Slide 1: Conquering Upper Limb Paralysis with Wearable Medical Robotics
Conquering Upper Limb Paralysis with Wearable Medical Robotics Paul R. Gudonis, Chairman and CEO David Henry, CFO NYSE American: MYO Investor Presentation February 2020 Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration No. 333-235538
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation contains forward-looking statements regarding the trading of the Company’s common stock on the NYSE American, the Company’s plans for the use of proceeds and advancing its product line, increasing its sales and marketing efforts and growing its business, the Compan
Slide 3: Offering Summary
Offering Summary NYSE American: MYO Issuer: Myomo, Inc. Exchange / Ticker: NYSE American: MYO Stock Price (as of 1/31/2020): $6.4549 Shares/Pre-Funded Warrants Offered: 2,100,000 Shares Outstanding (as of 9/30/2019, adjusted for reverse stock split on 1/31/2020): 572,964 Warrant Coverage: 100% Antic
Slide 4: Overview
Overview NYSE American: MYO Only commercially available device of its kind with FDA clearance and CE Mark Wearable medical robotic device that restores movement and function of paralyzed arms and hands Can benefit patients suffering from stroke, brachial plexus injury, traumatic brain or spinal cord
Slide 5: Investment Highlights
Investment Highlights Large unmet medical need and potential market expansion through product line extensions Estimated $10B U.S. market opportunity Experienced management team expanding and strengthening platform for only commercially-available device to restore function for upper extremity paralys
Slide 6: Proven Technology & Healthcare Leadership
Proven Technology & Healthcare Leadership Management Team Members Board of Directors & Advisors Paul R. Gudonis Chairman & CEO Robotics, Software, HBS MBA, BSEE Ross D. Zafonte, DO Chair, SAB Harvard Med. School, Spaulding Rehab. Gene Tacy, MSEE VP of Engineering Intel, GE Corporate R&D, NComm Thoma
Slide 7: World Health Organization: Data on Stroke Incidence
World Health Organization: Data on Stroke Incidence 15 M Strokes / Year 5 M Deaths 5 M Recover 5 M Impaired NYSE American: MYO Source: World Health Report, 2002 - WHO
Slide 8: Myomo Addresses an Unmet Need Among Upper Extremity Treatment Options
While There Are a Number of Upper Extremity Treatment Options Available, Myomo Addresses an Unmet Need Current Treatment Options Rehabilitation: Occupational Therapy Static Bracing Saebo Electrical Stimulation (Bioness) Stationary Robotics Medical: Botox Baclofen The Medical Need: A Lightweight, Por
Slide 9: Large Market Opportunity
CAUSES OF UPPER EXTREMITY PARALYSIS STROKE BRACHIAL PLEXUS INJURY SPINAL CORD INJURY MULTIPLE SCLEROSIS TRAUMATIC BRAIN INJURY ALS 25% of 3M existing cases of upper extremity paralysis $10 B Total US Market Size 25% of 350k new cases each year $1.2 B New Incidences / Year + US + EU + ROW $30 B Estim
Slide 10: MyoPro Orthosis: How it Works
Brain Signal EMG Sensor Signal Processing Movement MyoPro Orthosis: How it Works NYSE American: MYO
Slide 11: Competitive Landscape of O&P and Robotics
Lower Limb Products Upper Limb Products Lower Limb Products Upper Limb Products Exoskeletons Foot Drop Only Commercially Available Upper Limb Product Line to Restore Function Unit Volume Orthotics Prosthetics Stance Control Competitive Landscape of O&P* and Robotics Wheelchair * Orthotics and Prosth
Slide 12: Commercial Scale Up Underway
Commercial Scale Up Underway 2012 – 2017 Controlled Introduction 2018 – 2019 Scaling Up MyoPro 1 Product Line Limited # of US Markets Clinical Research and Initial Reimbursements VA Approval IPO and Follow-on Offering MyoPro 2 Product Line CE Mark Applied to CMS for HCPCS Codes Chief Commercial Offi
Slide 13: Actions Taken to Scale Up Operations and Accelerate Revenue
Actions Taken to Scale Up Operations and Accelerate Revenue Increased Lead Generation via Online B2C Marketing Established Call Center for Rapid Follow Up on Patient Leads Using TeleHealth Video Conferencing to Evaluate Patient Candidates Expanded Reimbursement Staff to Drive Increased Insurance Aut
Slide 14: Lead Generation with B2C Digital Marketing
Lead Generation with B2C Digital Marketing NYSE American: MYO
Slide 15: Reimbursement Pipeline Up Nearly 6X in 15 Months
Leading Indicator of Potential Future Revenues: Reimbursement Pipeline Up Nearly 6X in 15 Months 6/30/18 Previous Cases Pending Reimbursement Screening Insurance Authorization Order 9/30/18 12/31/18 3/31/19 New Unit Adds in Q3 6/30/19 9/30/19 NYSE American: MYO
Slide 16: Strategic Shift to Direct Billing = Higher Revenue & Margin
Strategic Shift to Direct Billing = Higher Revenue & Margin D O&P Clinics Direct Billing and Delivery Payers NYSE American: MYO Revenue Revenue
Slide 17: Direct Billing Pipeline: # of Cases up Approx. 7X
Direct Billing Pipeline: # of Cases up Approx. 7X 9/30/2018 9/30/2019 32 225 7X Strategic Shift to Direct Billing Channel in 2019 From Wholesale Sales to O&P Providers to Direct Billing by Myomo Higher Revenue and Margin per Unit More Control Over Process Longer Time to Payment by Insurance Plan NYS
Slide 18: Increasing Number of Reimbursements by Payers
Increasing Number of Reimbursements by Payers Commercial Payers Military Medicare Approvals on a Case by Case Basis 80% of Cases are Now Direct Billing by Myomo Approved for Vets > 40 VAMC’s Have Ordered MyoPro’s New HCPCS Codes in 2019 Medicare Advantage Claims Paid Part B Medicare DME Rental Claim
Slide 19: Expanding Addressable Market through Product Development
Expanding Addressable Market through Product Development ADULTS -- MyoPro 2012 ADOLESCENTS -- 2018 PEDIATRICS -- 1H20 Growth via Product Line Extension NYSE American: MYO
Slide 20: Entering International Markets
Entering International Markets NYSE American: MYO
Slide 21: European Expansion Underway
European Expansion Underway Established Myomo Business Development Office in Europe Recruited O&P Providers in Germany, Denmark, UK, Italy Conducting Screening Days and Building Patient Pipeline Obtaining Initial Reimbursements and Booking Orders NYSE American: MYO
Slide 22: Quarterly Revenues (YoY) – 2018-2019
Quarterly Revenues (YoY) – 2018-2019 Q3 ‘19 Revenue Flat vs. Prior Year Due to Shift to Direct Billing NYSE American: MYO
Slide 23: Cash Position
Cash Position Current Burn Rate $800K - $1M per month Reducing cash burn through Revenue growth and Operating Expense management $ millions Q3-19 Ending Cash $7.1M* NYSE American: MYO * Pro forma for proceeds from term loan in October 2019
Slide 24: Cap Table and Use of Proceeds
Cap Table and Use of Proceeds Cap Table At September 30, 2019 (as adjusted for reverse split): * Excludes shares to be issued in this offering Use of Proceeds Proceeds from this Offering Part of our Strategy to Achieve Cash Flow Breakeven NYSE American: MYO
Slide 25: Use of Proceeds: Strategy to Achieve Cash Flow Breakeven
Use of Proceeds: Strategy to Achieve Cash Flow Breakeven Assumptions: Continuation of One-time Payment for MyoPro’s, Current Payer Coverage Policies and Reimbursement Amounts Add 100-150 New Patient Candidates to Pipeline / Month Target “Good Payers” to Obtain Reimbursement Authorization at a Higher
Slide 26: Key Takeaways
Key Takeaways Large unmet medical need and potential market expansion through product line extensions Estimated $10B U.S. market opportunity Experienced management team expanding and strengthening platform for only commercially-available device to restore function for upper extremity paralysis FDA r
Slide 27: Thank You!
Thank You! For Additional Information: Paul R. Gudonis, CEODavid Henry, CFO paul@myomo.com david.henry@myomo.com 617-401-2623617-398-2435 NYSE American: MYO