Koru Medical Systems, Inc. · NASDAQ:KRMD
Koru Medical Systems — Q2 2023 Earnings Presentation
14 slides from Koru Medical Systems's earnings presentation, Aug 9, 2023
Slide 1: KORU Medical Systems Q2 2023 Earnings Call
KORU Medical Systems Q2 2023 Earnings Call August 9, 2023 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 regarding our expectations for future performance, including but not limited to our future novel therapies
Slide 3: Q2 2023 at a Glance
Q2 2023 at a Glance • U.S. business outpaced underlying market Tom Adams growth Chief Financial Officer • International growth of 17% year-over-year • Won a new phase III Novel Therapies collaboration • 510(k) submission for 50mL prefilled syringe • Updated Full Year 2023 revenue guidance & Interim
Slide 4: Making at Home Subcutaneous Drug Treatment a Reality – KORU Medical's Solution
Making at Home Subcutaneous Drug Treatment a Reality – KORU Medical’s Solution SELF-INFUSED CUSTOMIZABLE SUPPORTS ESTABLISHED Treatment Drug Volumes & Multiple Therapies & Regulatory Approval +35,000 patients Infusion Times Disease States In 25+ countries Novel Therapies Core Business Specialty Phar
Slide 5: Q2 Progress on Vision 2026 Strategic Growth Pillars
Q2 Progress on Vision 2026 Strategic Growth Pillars Grow Our Leadership Expand to Novel Therapies Geographic Position in Subcutaneous Expansion Immunoglobulin (SCIg) • Increased SCIg drug market • Focus on large volume >10ml • New patient starts growth • Pipeline expansion • Strengthen and expand •
Slide 6: Q2 Added One New Phase 3 Pharmaceutical Collaboration
Q2 Added One New Phase 3 Pharmaceutical Collaboration 15 Total Collaborations | 15 Pipeline Opportunities $2.5B TAM(1) | 2M(2) Global Patient Population Expanded Indications to Patient Population Current Label (Ig) (000’s) Phase I Phase II Phase III Launch Date Immunology /Neurology 630 1-2 years 1-
Slide 7: Strong Recurring Revenue in Core Business, Future Growth Opportunities Through Novel Therapies
Strong Recurring Revenue in Core Business, Future Growth Opportunities Through Novel Therapies KRMD 1-3 Years to 3+ Years to 5+ Years to Today Launch Launch Launch Commercialized 5 collaborations 5 collaborations 4 collaborations Drugs 4 Immunology / Neurology 1 Immunology / Neurology 1 Immunology /
Slide 8: Innovation Extends Subcutaneous Leadership Position
Innovation Extends Subcutaneous Leadership Position Value Proposition 2021-2022 2023 2024-2026 Freedom60 pump line New Products extension (Q4) (Comfort, Next generation Innovation investment Convenience, pump platform Connected) Consumables 510k submission (Q4) HIZENTRA® 20mL PFS New Core SCIg indic
Slide 9: Q2 Growth Driven by Core Business
Q2 Growth Driven by Core Business Net Sales; In Millions Domestic Core 6% $6.9 • Increased 8% year on year growth $6.5 $0.4 • Driven by increased volume of pumps and $0.6 $1.1 consumables, new account wins and $0.9 increased prefilled penetration International Core • Increased 17% year on year growt
Slide 10: Improving Gross Margin Profile
Improving Gross Margin Profile Gross Margin Guidance: 1H – 55-57% Exit Year – 60 -62% Q2 56.1% Full Year – 58-60% • Margin improvement driven by increased manufacturing efficiencies • Achieved mid point of 1H ‘23 Gross margin guidance 2H +60% +60% 58%-60% 56.1% • Full 2 quarters of outsourced 55% ma
Slide 11: Q2 2023 Cash
Q2 2023 Cash Key Drivers: Cash Balance as of June 30, 2023: $11.7M • Q2 cash burn of $0.5M $1.9M • Improvement in Working Capital +$1.9M ($5.2M) ($2.1M) ($0.3M) - Lower A/R DSO - $0.5M <($2.2M) - Transition Inventory reduction of $1.4M $12.2M $12.2M $17.4M $11.7M +$10.0M • Reaffirming end of year ca
Slide 12: Updating 2023 Guidance
Updating 2023 Guidance Revenue Gross Margin Cash & Growth Profile Cash Flow Revenue guidance in Gross margins Greater than $10M range 11%-17%, $31- between 58-60%, and ending cash balance $32.5 million 60-62% exit rate Key Drivers/Milestones Key Drivers/Milestones Key Drivers/Milestones • Core SCIg
Slide 13: Significant 2023 Progress Towards Vision 2026
Significant 2023 Progress Towards Vision 2026 $30M- $35M Vision 2026 Key Milestones (1) Core $60M+ 20% Revenue CAGR Novel Approved Product $60M by 2026 Therapies Growth Share Gains / Innovation 5 Phase III Trials – 2 in progress OUS Expansions 1 commercialized new drug indication – 1 in 2022, 5 pote
Slide 14: Continued Q2 Progress Toward Vision 2026
Continued Q2 Progress Toward Vision 2026 • U.S. business outpaced underlying market growth • International growth of 17% year-over-year • Won a new phase III Novel Therapies collaboration DELIVERING TRANSFORMATIONAL SUBCUTANEOUS INFUSION SYSTEMS THAT • 510(k) submission for 50mL prefilled syringe si