Atricure, Inc. · NASDAQ:ATRC
Atricure — Investor Presentation (August 2021)
30 slides from Atricure's investor presentation, Aug 4, 2021
Slide 1: AtriCure Investor Presentation: Creating a World Class Afib Platform
AtriCure Investor Presentation Creating a World Class Afib Platform © 2021 AtriCure, Inc. All rights reserved. AtriCure 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements,” which are statements related to future events that by their nature address matters that are uncertain. All forward-looking information is inherently uncertain and actual results may differ materially from assumptions
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement AtriCure’ s consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, AtriCure provides certain non-GAAP financial measures as supplemental financial metrics in this prese
Slide 4: Focused on reducing the global Afib epidemic and healing lives
We are passionately focused on reducing the global Afib epidemic and healing the lives of those affected Large Markets Addressing an underserved and growing patient population Strong Portfolio Existing products and solutions driving consistent growth Bright Future Novel therapies supported by growin
Slide 5: Afib: a Serious Problem
Afib: a Serious Problem Atrial Fibrillation (Afib) is an irregular heartbeat (or arrhythmia) that affects more than 33 million people worldwide.1 Approximately 1.2 million Afib diagnoses annually in the US.2 5x Risk of Stroke3 >5x Higher risk of Heart Failure 46% Greater risk of all cause Mortality
Slide 6: US Market Opportunity
US Market Opportunity $350M Pain Management Procedures (Ablation) Boosting Growth via adjacent new market Estimated 140,000 thoracic patients annually $700-800M Concomitant Open Procedures (Ablation/LAAM) Steady Growth in penetration of Cardiac Surgery Market Estimated 300,000 total patients (Afib,
Slide 7: Significant Global Market Opportunity
Significant Global Market Opportunity US Market Focus Continued build of dedicated sales and training expertise Clinical data supporting multiple label expansions New product development Enhanced reimbursement US market opportunity $3B+ annually International market opportunity $2B+ annually Interna
Slide 8: 2021 Priorities: Building for the Future
2021 Priorities: Building for the Future Standalone Hybrid Procedures Ablation and LAAM CONVERGE PMA approval and launch Deepen volumes at existing sites and train new accounts Addition of AtriClip to the Convergent procedure Continued global expansion of commercial and training teams Concomitant Op
Slide 9: CONVERGE: Long-standing Persistent Afib Patient Analysis
CONVERGE: Long-standing Persistent Afib Patient Analysis Freedom from AF/AFL/AT from 3-month blanking period through 12-months and 18-months 29% differential ~78% improvement 35% differential >100% improvement p = 0.022 66% 37% 12-months p = 0.006 61% 26% 18-months 0% 10% 20% 30% 40% 50% 60% 70% 80%
Slide 10: Benefits of the EPi-Sense System and Hybrid AF Therapy
Benefits of the EPi-Sense System and Hybrid AF Therapy Benefits based on 7-day continuous rhythm monitoring at 18-months post procedure Epicardial: Outside the heart 2 Endocardial: Inside the heart TRIGGER AREAS TARGETED where atrial fibrillation begins Emphasizes value of team-based approach for ad
Slide 11: Commercial Strategy for the EPi-Sense System
Commercial Strategy for the EPi-Sense System TARGET Drive utilization with existing and new sites BUILD Train and develop programs, build referral channel LEVERAGE Add AtriClip to Hybrid AF Therapy EXPAND Grow commercial + training teams, broaden internationally AMPLIFY Spread awareness of Hybrid AF
Slide 12: Innovative and Expanding Product Portfolio
Innovative and Expanding Product Portfolio Ablation ISOLATOR® SYNERGY™ CLAMP cryoICE® CRYOABLATION PROBE EPI-SENSE® DEVICE cryoSPHERE® CRYOABLATION PROBE 2H 2021 Product Launch: ISOLATOR SYNERGY ENCOMPASS® CLAMP LAA Management ATRICLIP® FLEX DEVICE ATRICLIP PRO® DEVICE ATRICLIP PRO•V® DEVICE ATRICLI
Slide 13: SPOTLIGHT: Cryo Nerve Block for Pain Management
SPOTLIGHT: Cryo Nerve Block for Pain Management Therapy Overview Long-lasting pain management therapy, designed for use in thoracic surgical procedures Temporarily stops transmission of pain signals coming from the chest wall during surgery Nerve “scaffolds” remain intact allowing axons to regenerat
Slide 14: SPOTLIGHT: Isolator Synergy EnCompass Clamp
SPOTLIGHT: Isolator SynergyEnCompass® Clamp Product Overview FDA 510(k) clearance to ablate cardiac tissue during surgery Designed with same benefits of the AtriCure Isolator Synergy Clamps: Parallel closure Uniform pressure Synergy algorithm provides custom power Compatible with existing AtriCure R
Slide 15: Key Investments Driving Growth
Key Investments Driving Growth AtriCure Pillars Foundation of our past and strengthening our future Innovation Expanding pipeline to drive Open ablation penetration and build MIS market Clinical Science Hybrid AF Therapy proven by CONVERGE trial: a complimentary and differentiated approach for advan
Slide 16: History of Strong Financial Performance
History of Strong Financial Performance Worldwide Revenue ($ millions) Historical Results Consistent Revenue Growth Strong history of double-digit YoY growth pre-COVID-19 Steady Improvement to Gross Margin pre-COVID-19 $0 $50 $100 $150 $200 $250 2015 129.8 2016 $155.1 2017 $174.7 2018 $201.6 2019 $2
Slide 17: Second Quarter 2021 Financial Highlights
Second Quarter 2021 Financial Highlights WORLDWIDE REVENUE* ($M) Year over Year Sequential Q2 2020 $40.8 75% Q2 2021 $71.4 Q1 2021 $59.3 20% Q2 2021 $71.4 COVID-19 receding in major markets Cardiac surgery procedure volumes stabilizing and demand growing Strong activity across product lines U.S. rev
Slide 18: An Exciting Future Ahead
An Exciting Future Ahead 2021 2020 2023 2024+ CONVERGE PMA and Hybrid AF Therapy launch Hybrid AF Therapy contribution Platform of therapies for differentiated population of Afib patients ACCELERATING GROWTH IN EP LANDSCAPE CORE TECHNOLOGIES Surgical Ablation || AtriClip || Cryo Nerve Block © 2021 A
Slide 19: Thank You!
Thank You! © 2021 AtriCure, Inc. All rights reserved. AtriCure 19
Slide 20: Supplemental Information
Supplemental Information References for any comments, statistics, or figures in this presentation are available upon request. © 2021 AtriCure, Inc. All rights reserved. AtriCure 20
Slide 21: Key Investment Rationale
Key Investment Rationale Large Markets Addressing an underserved and growing patient population Approximately 33 million Atrial Fibrillation patients globally, with majority having advanced forms of the disease1 Multibillion dollar annual market opportunity Current standard of care for intervention
Slide 22: COVID-19 Response
COVID-19 Response Positioning AtriCure for long-term growth Health & Safety Provide a safe work environment for our employees Enabling employees to work remotely and evaluating hybrid workplans Providing personal protection and other measures to ensure the safety of those working in our offices Limi
Slide 23: Two Distinct Patient Profiles
Two Distinct Patient Profiles Referring Physician: GP, Cardiologist STRUCTURAL HEART ISSUE Surgery required – Afib corrected at same time (Valve, CABG) GUIDELINES8 Surgical Ablation is RECOMMENDED LAA management is REASONABLE Concomitant Open Procedures (Ablation/LAAM) NO STRUCTURAL ISSUE Afib is pr
Slide 24: US Concomitant Market Opportunity
US Concomitant Market Opportunity Estimated Afib Opportunity in Cardiac Surgery Annual Cardiac Surgeries12 300,000 Pre-Operative Afib Rate10 ~28% Cardiac Opportunity – Pre-Op Afib 85,000 ASP Mix (Ablation and Appendage Management)13 $4,500 Open Cardiac Surgery Opportunity – Afib $382M Estimated Non-
Slide 25: US Standalone Market Opportunity
US Standalone Market Opportunity Estimated Standalone Afib Opportunity 2020 Projected 2025 Long-standing Persistent Afib Catheter Ablation16 25,000 45,000 ASP Mix (Ablation + Appendage Management)13 $15,000 $15,000 Immediate Standalone Afib Opportunity $375M $675M Additional penetration Long-standin
Slide 26: CONVERGE Overview
CONVERGE Overview SUPERIORITY TRIAL designed to support FDA approval of the EPi-Sense device Achieved statistical superiority for primary endpoints STUDY DESIGN Summary Multi-center, prospective, open label randomized 2:1 (Hybrid Convergent procedure vs endocardial catheter ablation) pivotal study N
Slide 27: Hybrid AF Therapy: the Convergent Procedure
Hybrid AF Therapy: the Convergent Procedure LV PA Aorta SVC Pericardial Reflections RA IVC Epicardial Lesions of Convergent Procedure Endocardial Lesions of Convergent Procedure © 2021 AtriCure, Inc. All rights reserved. AtriCure 27
Slide 28: The Cox-Maze IV Procedure
The Cox-Maze IV Procedure Left Atrial Appendage Coronary Sinus Mitral Annulus Circumflex Coronary Artery 1 2 3 4 5 6a 6b SC Right Atrial Appendage Right Coronary Artery Tricuspid Annulus IVC 1 2 3 4 5 Bipolar RF Clamp Surgical Incision Cryo- Edocardial Cryo – Epicardial © 2021 AtriCure, Inc. All rig
Slide 29: aMAZE Overview
aMAZE Overview SUPERIORITY TRIAL designed to evaluate safety and effectiveness of the LARIAT System to percutaneously isolate and ligate the Left Atrial Appendage for the treatment of persistent or longstanding persistent Afib STUDY DESIGN Summary Multi-center, prospective, open label randomized 2:1
Slide 30: References and Abbreviations
References and Abbreviations Note Reference 1 Worldwide Epidemiology of Atrial Fibrillation: A Global Burden of Disease 2010 Study 2 The American Journal of Cardiology (2013), 112: 1142-1147 3 J Geriatr Cardiol. 2016 Oct; 13(10): 880–882, doi: 10.11909/j.issn.1671-5411.2016.10.004 4 Santhanakrishnan