Nanosonics Limited · ASX:NAN
Nanosonics — Canaccord Genuity 34th Annual Growth Conference 2014
38 slides from Nanosonics's conference presentation, August 2014
Slide 1: Leader in Infection Control Solutions
LEADER IN INFECTION CONTROL SOLUTIONS Improving the safety of patients, clinics, their staff and the environment Michael Kavanagh, CEO and President Canaccord Genuity 34th Annual Growth Conference Boston, August 2014
Slide 2: Disclaimer
Disclaimer This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or other needs o
Slide 3: Corporate Mission
Corporate Mission We improve the safety of patients, clinics, their staff and the environment by transforming the way infection prevention practices are understood and conducted, and introducing innovative technologies that deliver improved standards of care Johns Hopkins Photo Credit: American Nurs
Slide 4: Company Overview
Company Overview Proprietary automated system for low temperature, high level disinfection ® First product, trophon EPR, for high level disinfection of ultrasound probes Approved for sale by: US FDA, TGA(AU), CE mark notified body (TUV Rheinland), Health Canada, Medsafe (NZ) & South Korean FDA
Slide 5: Company Overview: Key Corporate Data
Company Overview Key Corporate Data Share price* $0.82 Shares on issue 264.2 million Market capitalisation* $216 million Liquidity (30 day avg) 223,000 shares Cash (31 Mar 2014) $21.2 million Share register breakdown Founders/Related Parties 22% Institutions 33% Private 41% Corporate 4% * Close of t
Slide 6: Executive Team
Executive Team Non Executive Director from July 2012 Michael Kavanagh Commenced as CEO and President effective October 2013 CEO and President, Over 25 years’ experience in healthcare marketing Managing Director Previously Senior Vice President of Global Marketing for Cochlear for more than 1
Slide 7: Board of Directors
Board of Directors Maurie Stang Appointed Non-Executive Chairman March 2007, Director since 2000 Non-Executive Entrepreneur with over 20 years of experience in building and managing companies in the healthcare and Chairman biotechnology sector Currently Non-Executive Chairman of Aeris Environm
Slide 8: Healthcare Acquired Infections (HAIs)
Healthcare Acquired Infections (HAIs) HAIs Diabetes Breast Cancer Heart Failure 73,249 98,987 Prostate Cancer 56,494 41,883 30,446 HAIs kill more people in the US each year than Breast Cancer and Prostate Cancer combined.1,2 Up to 70% of HAIs are preventable using existing infection prevention pra
Slide 9: Imaging Procedure HAIs
Imaging Procedure HAIs Imaging procedure HAIs – a critical subset of HAIs that are not often discussed. 0.9 - 9% of barrier sheaths and condoms leak.1, A meta-analysis has shown that 12.9% of transducers are contaminated with pathogenic bacteria following routine disinfection.2 HPV, a known ca
Slide 10: The Need for Disinfection in Ultrasound
The Need for Disinfection in Ultrasound Ultrasound transducers must be reprocessed between patients to prevent cross-infection Any transducer that contacts broken skin, mucous membranes or sterile body cavities should be high level disinfected or sterilised1 Heat sensitive transducer construct
Slide 11: Traditional HLD Methods
Traditional HLD Methods Disinfection processes unchanged in 20+ years Existing methods have many shortfalls The traditional methods: soak, spray or wipe Chemical spills and vapour control present OH&S risks Probes often must be transported to a central sterilisation facility Pathogens may rema
Slide 12: Automation and Trends Towards Stricter Reprocessing Controls
Automation and Trends Towards Stricter Reprocessing Controls FDA mandates and multiple guidelines state that semi-critical ultrasound probes must undergo sterilization or high level disinfection (HLD) A number of international bodies recommend 1-3 automated reprocessing over manual methods The
Slide 13: Compliance with Guidelines
Compliance with Guidelines TJC Quick Safety 2014 identified Infection Control as one of the top five non-compliant TJC requirements1 In addition1 Of 13 immediate threat to life (ITL) discoveries from surveys conducted in 2013, seven were directly related to improperly sterilized or high level
Slide 14: It's Time for a New Solution
It’s Time for a New Solution “Here we are, with a new $150K ultrasound machine and $15K probes to go with it that we’re cleaning with 1960s glutaraldehyde soaking technology.” Feisal Keshaviee, CEO, Radiology Consultants Associated, Canada 14
Slide 15: trophon EPR
trophon® EPR Sim p lySma r ter Infection control First fully automated system for disinfection of ultrasound probes - compatible with all major ultrasound probes. Offers a safer, quicker, quality assured method of disinfecting ultrasound probes 15
Slide 16: Our Technology – Nano-Nebulisation for Low Temperature Disinfection
Our Technology – Nano-Nebulisation for Low Temperature Disinfection High frequency sonic vibration turns disinfecting liquid into nano-sized droplets “Nano” droplets disperse like a gas • Covers entire surface of object being disinfected NanoNebulant is a strong oxidising agent • Lethal to bac
Slide 17: The Case for trophon EPR - Efficacy
The Case for trophon EPR - Efficacy A peer-reviewed publication reported on 59 different efficacy experiments at four different testing locations in Europe and Australia. Successful tests against 21 species of bacteria, fungi and viruses demonstrated the HLD efficacy of trophon EPR using multiple
Slide 18: trophon EPR
trophon® EPR Fast: Fast automated high level disinfection Helps protect: Fully enclosed system limits exposure to harmful chemicals Consistent: Quality assured consistency Probe friendly: Probe friendly process. Compatible with more than 600 probe models Environmentally Friendly: Harmless oxygen and
Slide 19: Fast 7 Minute Cycle
Fast 7 Minute Cycle Preclean trophon® EPR Wipe/Print Label 7 minute \ Automated HLD cycle OBER BREE RRR Eee 20 / Py d A. eA, | det hh NoRokOL C= | | 5 to 20 minutes 7 AD Soak in solution ye Oo ©O oO 2 “oe PPE Preclean Test/Log Vented Soak Station PPE Rinse Rinse Rinse Wipe Log nanosonics 19 3
Slide 20: Compatible With More Than 600 Probe Models
Compatible With More Than 600 Probe Models More than 600 probes approved to date by leading manufacturers Nanosonics performs extensive testing on new probes Probe is returned to OEM for inspection, quality verification and approval “We’re now trying to ‘trophon’ every transducer after use, no
Slide 21: Large and Accessible Market
Large and Accessible Market Addressable install base: ~120,000 trophon EPR units ~40,000 units in North America Distribution of ultrasound machines Equivalent sized markets in Europe and RoW NAN revenue potential >$300 million p.a.* 30% Installed Base 120,000 units 34% North Europe 5 yea
Slide 22: Attractive Revenue Model
Attractive Revenue Model Multiple revenue streams: Up-front sales plus consumables, accessories and service contracts Accessories Trophon Consumables Service and maintenance contracts 35% 5% 45% 15% Figures refer to % of revenue Each unit sale results in robust annuity type revenue stream 22
Slide 23: Regulatory Approval Across all Major Markets
Regulatory Approval Across all Major Markets US FDA TGA (AU) MDCO (Hong Kong) CE mark notified body Medsafe (NZ) Roszdravnadzor (Russia) (TÜV Rheinland) MFDS (South Korea) PMDA (Japan) Health Canada HAS (Singapore) 23
Slide 24: Financial Results for FY14
Financial Results for FY14 FY13 FY14 $million $million % Change Total Sales Revenue 14.899 21.492 44% Cash Balance at 30 June 24.1 21.2* -12% * Additional cash receipts of $3.0 million were received in July relating to sales in the fourth quarter. 24
Slide 25: North America
Ron Bacskai North America President & CEO, Nanosonics Inc. Keith Koby John Corbett Vice President Sales Program Manager Kevin Markham Donna Fiorentino Southeast Regional Northeast Regional Sales Sales Manager Manager Norm Rich Tom O’Neill Ray Beams Western Regional North Central Regional South Centr
Slide 26: Exclusive Distribution Agreement with GE Healthcare in North America
Exclusive Distribution Agreement with GE Healthcare in North America “GE Healthcare is pleased to be offering this new technology in ultrasound probe reprocessing which is effective, efficient and environmentally friendly. Through our investments in highly innovative technologies and as the exclusiv
Slide 27: 40 of the Top 50 Hospitals
40 of the Top 50 Hospitals as of August 2014 27
Slide 28: >1000 USA Locations
USA Order Locations >1000 USA Locations Note: locations may have multiple units installed 28
Slide 29: Complete and safer protection for our patients and staff
“…complete and safer protection for our patients and staff ” “The trophon EPR has been the biggest thing to hit ultrasound since color Doppler. “trophon was an answered prayer! It has solved so many high level disinfection (HLD) issues while offering more complete and safer protection for our patien
Slide 30: United Kingdom
United Kingdom Bryn Tudor-Owen Country Manager Toshiba & GE as distributors Nanosonics also selling direct Number of key hospitals adopting trophon EPR Awareness activities progressing 30
Slide 31: Medicines & Healthcare products Regulatory Agency
Medicines & Healthcare products Regulatory Agency Government agency with responsibilities for standards of safety, quality & performance Medical Device Alert Ref: MDA/2012/037 Issued: 28 June 2012 Device Problem Action • Reusable transoesophageal, echocardiography, • The MHRA is aware of an incident
Slide 32: Health Boards Review Nearing Completion
Health Boards Review Nearing Completion News Ultrasound Probe Decontamination - National Survey Launched Full review of TV and TR reprocessing services in 4th October 2012 order to establish clear In August HFS launched a national survey of National Recommendations current decontamination practice o
Slide 33: Delivers significant cost savings
Delivers “significant cost savings” “It has also had a positive impact on patient confidence as they know the probe has been automatically reprocessed rather than manually cleaned. “While there is an additional cost required to implement the trophon EPR, versus the alternative HLD wipe system we loo
Slide 34: Germany
Germany Ralf Schmaehling Country Manager Miele Professional German Distributor Nanosonics also selling direct Number of key hospitals adopting trophon EPR Awareness activities progressing 34
Slide 35: France
France Julien Laronze Country Manager GE Healthcare as French Distributor Nanosonics also selling direct Awareness activities progressing 35
Slide 36: A real risk of transmission
“A real risk of transmission”1 Poor infection control practices in France may cause up to 30,000 people to develop an infection from intracavity ultrasound procedures. Of the four million yearly intracavity examinations the following transmissions could 1 occur: 63 HIV cases 1,624 hepatitis B ca
Slide 37: Summary
Summary Growing awareness of the Healthcare Acquired Infection (HAI) risk associated with Imaging Regulation / Guidelines – Trends towards stricter controls for high level disinfection (HLD) and automation. Risk mitigation growing in importance under Accountable Healthcare models Clinical ev
Slide 38: Thank you
Thank you nanosonics
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