Slide 1: Cyclopharm Limited Investor Presentation
For personal use only Cyclopharm Limited INVESTOR PRESENTATION 17 September 2008 80917.7
Slide 2: Disclaimer
Disclaimer For personal use only Certain views expressed here contain information derived from publicly available sources that have not been independently verified. The presentation includes certain statements, estimates and projections with respect to the anticipated future financial performance of
Slide 3: Agenda
Agenda For personal use only Introduction to Cyclopharm Business Overview Financial Update Outlook 3
Slide 4: Introduction to Cyclopharm
For personal use only Introduction to Cyclopharm 4
Slide 5: Mission & Values
Mission & Values For personal use only Mission Cyclopharm’s mission is to enable nuclear medicine and other clinicians with the ability to improve patient care outcomes. We will achieve this through strategic partnerships and the provision of diagnostic products and services to the global medical co
Slide 6: Board of Directors
Board of Directors For personal use only Vanda Gould David Heaney Non executive Chairman Non executive Director • M. Comm, FCA, FCPA • Experienced Director in both public and private organisations • Chairman CVC Limited, and various public and private • 38 years in senior banking roles within the NA
Slide 7: Management
Management For personal use only James McBrayer Prof Nabil Morcos Managing Director Chief Operating Officer • B.S. Pharm, GDM. FAICD • PhD Nuclear Chemistry / Radio Chemistry • Nuclear Pharmacist since 1990 • 10 years as Head of Commercial Radiopharmaceuticals for • 18 years in operations and execut
Slide 8: Cyclopharm business
Cyclopharm business Two main business units For personal use only Technegas Molecular Imaging Established in 1986 continues to Establishment of PET central generate revenue, profits and pharmacies to produce PET strong cash flows through the radiopharmaceuticals for Australia manufacture and distrib
Slide 9: Nuclear Medicine Overview
Nuclear Medicine Overview For personal use only Nuclear Medicine relies on diagnostic radiotracers (radiopharmaceuticals) to detect and monitor various disease states for oncology, endocrinology, pulmonology, cardiology and neurology. Molecular Imaging is a specialty field within the practice of Nuc
Slide 10: Business Overview: Technegas
For personal use only Business Overview TECHNEGAS 10
Slide 11: Technegas
Technegas For personal use only There are three components required Components of Technegas for a Technegas procedure: 1.Technegas Generator 2.A single use Patient Administration Set (PAS) 1. Generator 3.A single use patient crucible 2. PAS Technegas Generators, PAS and patient crucibles are manufac
Slide 12: Technegas Global footprint
Technegas Global footprint For personal use only •Technegas is sold in 53 countries across the world •Over 2,000,000 patient studies since 1988 • 170,000 patient studies conducted in 2007 •1,100 Technegas generators sold globally •Patents in 36 countries •Application to the US Food and Drug Administ
Slide 13: Technegas Market
Technegas Market Current and Potential For personal use only Pulmonary Embolism (PE) Chronic Obstructive Pulmonary Disease •There are 42,0001 estimated cases of (COPD) Pulmonary embolism each year in •There is an estimated 620,0001 patients Australia. suffering from COPD in Australia •35,000 Techneg
Slide 14: Business Initiatives
Business Initiatives New Drug Application (NDA) For personal use only Phase III clinical trials finalised in October 2007 Certus International together with Dr Robert Wolfangel are preparing our NDA submission Application is 85% complete Submission of NDA scheduled for 4th Quarter 2008 Approval expe
Slide 15: Business Overview: Molecular Imaging
For personal use only Business Overview MOLECULAR IMAGING 15
Slide 16: Molecular Imaging - Positron Emission Tomography (PET)
Molecular Imaging ‐ Positron Emission Tomography (PET) For personal use only PET is the future of Nuclear Medicine. Positron Emission Tomography allows physicians to differentiate between healthy and diseased tissue and therein: •Detect cancer and other disease states more accurately •Detect cancer
Slide 17: Molecular Imaging Industry Developments
Molecular Imaging Industry Developments For personal use only Improved Technology PET is the future of Nuclear medicine. As a result, equipment manufacturers are investing heavily in the advancement and development of improved and integrated technologies. Additional Government Funding Approved Austr
Slide 18: Australian Cancer Statistics
Molecular Imaging Australian Cancer Statistics For personal use only Cancer has a major impact on the Australian community, in terms of morbidity, mortality and costs. In 2004, more than 488,000 new cases of cancer were diagnosed in Australia. About 390,000 of these cancers were of less threatening
Slide 19: Molecular Imaging Market Potential
Molecular Imaging Market Potential For personal use only Lung, Ovarian, Colorectal and Relative Survival Rates 1998 ‐ 2004 Melanoma accounted for 10.2% of 100% 90% all deaths in 2005 and represents 80% 32.9% of all diagnosed cancers. 70% 60% % Survival 50% 40% Initial indications targeted lung 30% c
Slide 20: Market Drivers - Positron Emission Tomography
Market Drivers – Positron Emission Tomography For personal use only Cyclopharm will participate in the Molecular Imaging market through the manufacture and supply of PET Radiopharmaceuticals 20
Slide 21: Cyclotrons
Cyclotrons PET Radiopharmaceutical Production For personal use only •Cyclotrons are a type of subatomic particle accelerator •Distribution expertise critical for success ‐ products manufactured are ultra‐short life, high‐ energy isotopes Carbon‐11, with a half‐life of 20 min Nitrogen‐13, with a half
Slide 22: PET Nuclear Pharmacy Projects Underway
PET Nuclear Pharmacy Projects For personal use only Underway Melbourne ‐ Lloyd Street, Kensington 9 Land purchased • Design under development • Construction to commence early 2009 Lloyd Street, Kensington is a proposed group asset Sydney – Macquarie University Private Hospital 9 Design phase complet
Slide 23: Financials
For personal use only Financials 23
Slide 24: Financial Review
Financial Review For personal use only 1st half 2008 highlights Profit & loss statement Sales revenue analysis Balance sheet Operating cash flow Financial model 24
Slide 25: 1st Half 2008 Highlights
1st Half 2008 Highlights For personal use only ; Strong underlying performance of the Technegas division ; Strong balance sheet ; Strong trading cashflow ; Continued geographic expansion in Europe, Asia and South America ; Technegas submission to the US FDA is 85% complete. Submission planned for se
Slide 26: Profit & Loss
Profit & Loss For personal use only For the half year ended 30 June 2008 30 June 2007 Profit before tax and finance costs $ $ increased to $482,285 (2007: 149,367). Technegas Division Sales Revenue 4,351,514 4,790,891 Whilst Technegas related sales revenue Profit before tax and finance costs 594,999
Slide 27: Sales revenue: Technegas Divisional Review 1st Half 2008
Sales revenue Technegas Divisional Review 1st Half 2008 For personal use only $3.7 m $3.7 m $3.5 m Revenue from TechnegasPlus generators and PAS decreased 11% 18 TechnegasPlus generator sales (2007: 48) and 67,000 PAS unit sales (2007: 72,850) recorded in the Jun '06 Jun '07 Jun '08 first half. Grou
Slide 28: Sales revenue: Total sales
Sales revenue Total sales For personal use only Traditionally the second half of the calendar year generates a higher proportion of total sales than the first half. We forecast this trend to continue in 2008. #039;m 6 4 Forecast 2 0 2006 2007 2008 Revenue split by half year H1 H2 28
Slide 29: Sales units by product line
Sales units By product line For personal use only units 60 40 Forecast 20 Sales in the 2nd Half 2006 and 2007 0 benefited from the release of the 2006 2007 2008 new TechnegasPlus generator (first Technegas generator sales by half year H1 H2 major upgrade since 1986) and special introductory pricing
Slide 30: Balance Sheet
Balance Sheet For personal use only Strong balance sheet Net gearing* of 17% with the capacity to fund initial rollout of Molecular Imaging facilities and new Technegas markets Balance Sheet Summary 30 June 2008 31 December 2007 $ $ Total Current Assets 8,448,719 7,763,729 Total Non-current Assets 4
Slide 31: Operating Cashflow
Operating Cashflow For personal use only Strong trading cashflow The Technegas business underpins the success of the business generating strong operating cashflow. 30 June 2008 30 June 2007 $ $ Operating activities Receipts from customers 5,532,280 5,748,483 Payments to suppliers and employees (3,87
Slide 32: Financial Model: Key Assumptions for Growth
Financial Model Key Assumptions for Growth For personal use only Molecular Imaging • Sales forecasted to commence December 2009 • Capacity increasing through 2010 Capital expenditure $9.3m • Macquarie $7.5m • Kensington $1.8m Financing for molecular imaging • Capital raising $4.2m (net of offer cost
Slide 33: Financial Model: Forecast Profitability
Financial Model Forecast Profitability For personal use only We expect the benefits of a fully operational PET Nuclear Pharmacy at Macquarie University Private Hospital and sales in the United States to be realised in 2010. Forecast Full Year Ending Half Year Ending December 2008 December 2009 June
Slide 34: Key Metrics: Rights Issue Offer
Key Metrics For personal use only Offer* Rights Issue to Shareholders Offer Price cents $0.15 Current shares on issue number 139,212,616 New shares being offered number 30,000,000 Shares on issue after completion of the Offer number 169,212,616 Market capitalisation at the Offer Price after completi
Slide 35: Financial Model: Timing of capital expenditure
Financial Model For personal use only Timing of capital expenditure PET Nuclear Pharmacy Jun-08 Dec-08 Jun-09 Dec-09 Total Macquarie University Private Hospital, North Ryde $0.02m $1.36m $0.29m $5.85m $7.52m Lloyd Street, Kensington $0.18m $0.00m $1.68m $0.00m $1.86m Total $0.19m $1.36m $1.97m $5.85
Slide 36: Outlook
For personal use only Outlook 36
Slide 37: Outlook
Outlook For personal use only • Continue to leverage our strong business foundation based on proven and well established technology • Technegas has exceptional growth opportunities through geographic expansion in the United States and the development of potential new indications • Molecular imaging
Slide 38: Appendix
For personal use only Appendix 38
Slide 39: Relative Cancer Survival Rates
Relative Cancer Survival Rates For personal use only 1 Year Survival (%) 5 Year Survival (%) 10 Year Survival (%)a All Cancersb 76.6 61.0 54.6 Pancreas 19.1 4.6 3.7 Unknown primary site 17.2 9.1 6.9 Lung 35.4 11.8 8.4 Brain 40.9 18.9 15.1 Stomach 48.8 24.7 21.0 Ovary 73.2 39.8 31.7 Leukaemia 67.1 47
Slide 40: Medical Services Advisory Committee: PET Indications In Process
Medical Services Advisory Committee PET Indications In Process For personal use only • Head and Neck • Lymphoma • Glioma and Sarcoma • Myocardial Viability • Breast Cancer • Cervical Cancer • Colorectal • Ovarian • Melanoma 40
Slide 41: Indicative Share Capital
Indicative Share Capital1 For personal use only • Listed on the ASX in January 2007 • 139,212,816 shares • 1,254 shareholders • Top 20 Investors = 67% of total shares • 8.5% of Investors hold 84.3% of shares Management 2% • Strong backing from cornerstone Retail 27% Institution 41% investors Directo