Hls Therapeutics, Inc. · TSX:HLS
Hls Therapeutics — FY2023 Earnings Presentation
19 slides from Hls Therapeutics's earnings presentation, Mar 14, 2024
Slide 1: Q4 & Fiscal 2023 Conference Call
Q4 & Fiscal 2023 Conference Call March 14, 2024 Craig Millian, CEO John Hanna, Interim CFO TSX - HLS
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation are “forward-looking statements”. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not alwa
Slide 3: 2023: Year of Transition
2023: Year of Transition Management Changes Board Changes Craig Millian, John Welborn appointed CEO and Director Chair Product strategy and resources focused on John Hanna, Christian Roy, Craig Millian Vascepa and Clozaril Interim CFO and Director and John Hanna joined the board Brian T. Walsh, SVP,
Slide 4: 2023: Financial Highlights
2023: Financial Highlights Revenue: Revenue from marketed $63.1M products in Canada: Adjusted EBITDA: Up 6% as reported $21.1M Cash from operations: Up 10% in constant $15.8M currency Toronto Stock Exchange (TSX) - HLS Provided as part of an oral presentation and qualified by such, contains forward-
Slide 5: Life-changing medicine for Treatment Resistant Schizophrenia
Life-changing medicine for Treatment Resistant Schizophrenia Toronto Stock Exchange (TSX) - HLS Provided as part of an oral presentation and qualified by such, contains forward-looking statements, actual results may vary materially; HLS disclaims any duty to update
Slide 6: Consistent Brand Performance Generates Stable Cash Flow
Consistent Brand Performance Generates Stable Cash Flow US$39.5M US$29.7M 8 Revenue 2023 Direct contribution to consecutive years Adjusted EBITDA 2023 of patient growth in Canada since acquired by HLS (up 1% in 2023) Goal is to grow North American Clozaril sales 1-2% Toronto Stock Exchange (TSX) - H
Slide 7: A New Paradigm in the Treatment of Cardiovascular Risk
A New Paradigm in the Treatment of Cardiovascular Risk Toronto Stock Exchange (TSX) - HLS Provided as part of an oral presentation and qualified by such, contains forward-looking statements, actual results may vary materially; HLS disclaims any duty to update
Slide 8: Executing on Priorities for Vascepa Growth & Profitability
Executing on Priorities for Vascepa Growth & Profitability Launched updated promotional services agreement with Pfizer on Adapt go-to-market January 1, 2024 model ▪ GPs now make up >55% of NRx Completed PLA with BC Pharmacare on February 6, 2024 ▪ increases national coverage to ~85% of public covere
Slide 9: Continued Prescription Momentum
Continued Prescription Momentum Weekly script data since launch 2500 73% increase in prescribers^ 2000 99% increase in consistent prescribers^ 1500 86% increase 1000 in total prescriptions* 70% increase 500 in 30-day unit equivalents* 0 ^Q4 2023 compared to Q4 2022 Oct-20 Oct-21 Oct-22 Oct-23 Feb-20
Slide 10: 2024 Outlook: Year of Execution
2024 Outlook: Year of Execution Toronto Stock Exchange (TSX) - HLS Provided as part of an oral presentation and qualified by such, contains forward-looking statements, actual results may vary materially; HLS disclaims any duty to update
Slide 11: 2024 Outlook: Revenue
2024 Outlook: Revenue Vascepa Clozaril Royalty $20.5-22.5M (C$27.5-30M) $40M $3-4M ~ 55-70% growth ~ 1-2% growth ~ 60-70% decline Revenue from marketed products of $60.5M-$62.5M (15-19% growth) Consolidated revenue outlook of $63.5M to $66.5M, or 1-5% growth Toronto Stock Exchange (TSX) - HLS Provid
Slide 12: 2024 Outlook: Adjusted EBITDA
2024 Outlook: Adjusted EBITDA Vascepa & Clozaril 2023 AEBITDA 2024 AEBITDA (estimated split) Marketed products Adjusted EBITDA expected to grow ~ 60% in 2024 Royalty portfolio Adjusted EBITDA expected to decline ~ 60-70% in 2024 Marketed Products Royalty Marketed Products Royalty Goal is to achieve
Slide 13: Revenue & Adj EBITDA Growth Prospects Improve Beyond 2024
Revenue & Adj EBITDA Growth Prospects Improve Beyond 2024 1 Both products expected to be profitable in 2025 2 Scalable Vascepa operating model; margins improve as top-line grows 3 Royalty portfolio expected to grow modestly beginning in 2025 4 Improved operating performance should support portfolio
Slide 14: Financial Strength: Solid Foundation to support our growth
Financial Strength: Solid Foundation to support our growth Toronto Stock Exchange (TSX) - HLS Provided as part of an oral presentation and qualified by such, contains forward-looking statements, actual results may vary materially; HLS disclaims any duty to update
Slide 15: 2023: Revenue Growth Driven by CDN Marketed Products
2023: Revenue Growth Driven by CDN Marketed Products Consolidated Revenue (US$ millions) Marketed Products Revenue (US$ millions) CDN Marketed Products Revenue (C$ millions) 70 60 45 40 60 Up 3%, 50 Up 2%, Up 6%, 35 50 or 5% in or 5% in or 10% in 40 30 constant constant constant 40 25 currency 30 cu
Slide 16: Vascepa to Become a Positive Contributor to Adjusted EBITDA
Vascepa to Become a Positive Contributor to Adjusted EBITDA Adjusted EBITDA Contribution ACTUAL (2023) FUTURE OUTLOOK Vascepa to generate positive contribution to Adjusted EBITDA in Q4 2024 direct contribution to continued strong Adjusted EBITDA: contribution to Adjusted EBITDA $29.7M direct contrib
Slide 17: Strong Balance Sheet with Capacity for Expansion
Strong Balance Sheet with Capacity for Expansion Summary Balance Sheet & Capitalization Updated Credit Agreement (US$ millions) At Dec 31, 2022 At Dec 31, 2023 • $30M revolver capacity (undrawn), now $25M • Allowable restricted payments (NCIB) capped Cash and Cash Equivalents 20.7 22.0 at $2.5M for
Slide 18: Stable cash flow & significant organic growth potential
▪ Stable cash flow & significant organic growth potential ▪ Near-term operational catalysts drive Vascepa to profitability by year end ▪ Foundation set for accelerated future growth ▪ Financial capacity for future expansion Toronto Stock Exchange (TSX) - HLS Provided as part of an oral presentation
Slide 19: Q4 & Fiscal 2023 Conference Call
Q4 & Fiscal 2023 Conference Call March 14, 2024 Craig Millian, CEO John Hanna, Interim CFO TSX - HLS