Slide 1: Innovating for the healthcare needs of tomorrow
1 Innovating for the healthcare needs of tomorrow Year-end presentation February 18, 2016
Slide 2: Combating healthcare associated infections and antibiotic resistance is a shared commitment
2 Combating healthcare associated infections and antibiotic resistance is a shared commitment “We encourage infection control via improved hygiene, vaccination, and preventive treatments to help reduce the number of infections needing antibiotic treatment.” Declaration by the Pharmaceutical, Biotech
Slide 3: Antibiotic resistance from a Swedish point of view
3 Antibiotic resistance from a Swedish point of view “The modern healthcare system is already showing cracks. There is a risk that people, already affected by the most multi-resistant infections, may not undergo bone marrow transplantation since the risk of dying during such an intervention is far t
Slide 4: Our key priorities
4 Our key priorities Key priorities • Drive sales of our own BIP product portfolio • Develop new license businesses • Secure refinancing of the bond loan Achievements in 2015 Doubled sales of BIP product portfolio Entered license agreement in new therapeutic area Secured refinancing of the bon
Slide 5: Highlights in the fourth quarter
5 Highlights in the fourth quarter Product approval for China, followed by initial order in Q1 Major initial order from India New license agreement for orthopaedic implants Secured refinancing of bond loan Adjusted additional order from C.R. Bard Revised financial targets Changed accou
Slide 6: Market update
6 Market update Focus on select markets and expanding the business EUROPE • Entering new markets • Strengthening the team • Tender management • Reference sites MEA China • Expand the business • Preparations for launch • Build KOL network • Participating in tenders LATIN AMERICA INDIA • Focus on Braz
Slide 7: China and India
7 China and India China • Product approval for Foley catheters • First order for 100 000 catheters • Preparations for launch • Deliveries will start from Q1 2016 India • Clinical study involving 1 000 patients at six sites • First order of 50 000 Foley catheters • Market introduction at major urolog
Slide 8: Licensing business
8 Licensing business Current agreements C.R. Bard Strategy • Successful partnership since 1995 • Add license • Exclusive distributor of Bactiguard-coated Foleys agreements in new in the US, Japan, UK and Ireland therapeutic areas • More than 150 million catheters sold to date • Generating stable ann
Slide 9: The clinical evidence is getting stronger
9 The clinical evidence is getting stronger 150 million Foley catheters have been used since 1995 35% of weighted average reduction is proven in clincial studies of symptomatic CAUTI (catheter associated urinary tract infections), and in some studies up to 70% 50% reduction of catheter related blood
Slide 10: Ex Vivo assessment of Blood Compatibility - BIP CVC
Ex Vivo assessment of Blood Compatibility - BIP CVC: Vafa Homann et al. 2015 TAT* relatively to blood control Problem Catheter related Thrombosis – develops 45,0 in around 4% of the patients and is a life threatening condition 40,0 Uncoated Methods Blood from 23 healthy volunteers was 35,0 BIP CVC e
Slide 11: Highlights
11 Highlights Fourth quarter (Oct-Dec 2015) • Revenues of MSEK 20.6 (24.7), minus 17% compared to 2014 (lower deliveries to C.R. Bard) • EBITDA of MSEK -6.1 (-3.6), adjusted MSEK -4.8 Full year (Jan-Dec 2015) • Revenues of MSEK 138.5 (98.3), plus 41% compared to 2014 (additional MSEK 20 order C.R. B
Slide 12: Supplied products
12 Supplied products • 74 000 BIP products supplied in Q4 2015 compared to approx. 8 000 during Q4 2014 • For the full year 2015 , 152 000 BIP products were supplied compared to 79 000 for the full year 2014, an increase of approx. 92%
Slide 13: Change of accounting principle
13 Change of accounting principle Territorial fees ● Territorial fees will be accounted for as Sales of BIP Effect: products at product delivery • Positive effect of approx. MSEK 34 on profit for 2015 ● Previously, territorial fees were accounted for as • Positive effect of approx. revenues at contr
Slide 14: Revenue streams
14 Revenue streams Two revenue streams in the income statement License BIP portfolio Bard license deal BIP Foley BIP ETT BIP CVC (sales since 1995) 1 2 License BIP revenue From a product perspective Bactiguard has two lines of business; Licenses and the BIP portfolio, acknowledged in the accounts as
Slide 15: Income distribution
15 Income distribution Oct-Dec Oct-Dec Full year Full year MSEK 2015 2014 2015 2014 License revenues 15,9 20,2 125,3 89,8 Sales of BIP products 2,4 0,3 6,1 3,7 Other revenue 2,2 4,2 7,0 4,8 Total Revenues 20,6 24,7 138,5 98,3
Slide 16: License revenues from C.R. Bard Financial overview
License revenues from C.R. Bard Financial overview 16 License revenues (underlying volumes) (SEKm) Q1 Q2 H1 Q3 Q4 Full year Of which currency 2013 21,6 19,3 40,9 21,3 20,5 82,7 effect 2014 22,5 22,8 45,3 24,3 20,2 89,8 MSEK 5 2015 26,8 25,8 52,6 36,8 15,9 105,3 . Of which currency License revenues e
Slide 17: Key figures
17 Key figures Oct-Dec Oct-Dec Full year Full year Key figures 2015 2014 2015 2014 • EBITDA (Q4) MSEK -6.1, Revenues, SEKm 20,6 24,7 138,5 98,3 • EBITDA (Full year) MSEK EBITDA, SEKm -6,1 -3,6 20,2 -5,4 20.2 (15%), adjusted EBITDA EBITDA margin, % -30% -15% 15% -5% MSEK 31.4 (23%). 1 EBITDA , SEKm -
Slide 18: Financial flexibility and strength
18 Financial flexibility and strength Q2 -14 Share issue of MSEK 20 in April Set off issue of MSEK 222.5 in June Share issue of MSEK 240 in connection with IPO Q2 -14 • Repurchase of bonds, nominal value MSEK 89.5 - Q4 15 • Equity ratio of 62 % • Net debt of MSEK 120 • Cash position of MSEK 22
Slide 19: Financial targets
19 Financial targets Average sales growth of 20% per annum for a 5-year period, with 2015 (adjusted for the additional order from C.R. Bard) as the base year EBITDA margin of at least 30% at the end of the 5-year period Equity ratio of at least 30% Over time uphold a dividend policy of 30-50
Slide 20: Concluding remarks
20 Concluding remarks • Antibiotic resistance and healthcare associated infections is still at the top of the political agenda • There is a great and steadily increasing need for infection prevention • Final product approval and first order from China • Initial order from India • Doubled the sales o
Slide 21: More information is available on our website
21 More information is available on our website www.bactiguard.se For questions and additional information, please contact: Christian Kinch, CEO: +46 8 440 58 80 Christian.kinch@bactiguard.se Fredrik Järrsten, CFO: +46 725 500 089 fredrik.jarrsten@bactiguard.se Cecilia Edström, Vice President - Dire
Slide 22: Questions
22 Bactiguard has an important role to play Preventing healthcare associated infections Questions