Atricure, Inc. · NASDAQ:ATRC
Atricure — Investor Presentation (January 2013)
22 slides from Atricure's investor presentation, Jan 7, 2013
Slide 1: Investor Presentation January 2013
Exhibit 99.2 Investor Presentation January 2013
Slide 2: Forward Looking Statements; Non-GAAP Measures
Forward Looking Statements Non-GAAP Measures This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that address activities, events or developments that AtriCure expects, believ
Slide 3: AtriCure Highlights
AtriCure Highlights New leadership November 2012 – Focus on accelerating growth, commercial execution, R&D innovation Large underpenetrated market with few sustainable treatment options Undisputed market leader in all types of surgical ablation – Broad and deep product portfolio – Strong IP in the f
Slide 4: AtriCure at a Glance – Strong Track Record
AtriCure at a Glance – Strong Track Record Surgical ablation leader for the treatment of atrial fibrillation (AF) – Over 100,000 Open procedures in >700 medical centers – Over 10,000 MIS procedures in ~130 medical centers Leader in implants designed to exclude left atrial appendage (LAA) – Over 14,0
Slide 5: AF Population: Large, Growing & Undertreated
AF Population: Large, Growing & Undertreated • U.S. prevalence projected to grow to 12-15 million by 2050 AF affects over 5 • International prevalence is comparable to the U.S. million in the U.S. (1) • Most common sustained cardiac arrhythmia (2) • Lifetime risk of AF: ~1 in 4 for adults 40 years o
Slide 6: Atrial Fibrillation U.S. Market Opportunity
Atrial Fibrillation U.S. Market Opportunity Open Surgical Market 3-5 Million Patients in U.S. with AF • Labeling advantage in US Current Market, • Best products $130M • High gross margins Open • Education key Surgical Market Patient Opportunity, • Competition is large device Opportunity, $370M Untre
Slide 7: Left Atrial Appendage U.S. Market Opportunity
Left Atrial Appendage U.S. Market Opportunity LAA (Concomitant) Current ~1M U.S, LAA Patients Market, • Mechanical, Electrical, LAA $10M Atraumatic; Solution (Concomitant) • Competition includes Tiger 100,000 Paw, staple, suture, patients Market ligature (endloop) – NO Opportunity, $100M Complete So
Slide 8: AtriCure Business Overview
AtriCure Business Overview 2012 Market Current Focus Areas Keys to Success Growth Size ($M) Trials Open AF Education; referral dev.; Reimbursement; +13% $500M PAS (Concomitant) awareness; conversions; add-on sales Referral development; new products; hybrid; MIS AF Sole -11% $4,000M surgeon proctorin
Slide 9: Growth Strategy: Overview
Growth Strategy: Overview Expand Open-Heart Sales Penetrate LAA Opportunity • Leverage recent AF indication • Penetrate open-heart ablation centers • Increased training and education • Featured in our training and education for open-heart • Capitalize on sales force realignment and AF Strategic Mark
Slide 10: Growth Strategy: Expand Open-Heart Sales
Growth Strategy: Expand Open-Heart Sales FDA Approval Leveraging FDA Approval • FDA approved the AtriCure Synergy • AtriCure can partner with surgical AF Ablation System for treatment of non- leaders to provide comprehensive paroxysmal Atrial Fibrillation in training and support patients undergoing
Slide 11: Growth Strategy: Expand Open-Heart Sales
Growth Strategy: Expand Open-Heart Sales • Significant progress in both surgeon and site certification – all achieved in a 9 month period (18 month program) 1,000 1,000 800 609 600 500 400 359 200 - 9 Month Progress 18 Month Goal 9 Month Progress 18 Month Goal Surgeons Certified Sites Certified • Ex
Slide 12: Growth Strategy: Build MIS Platform
Growth Strategy: Build MIS Platform Strategic Initiatives Build Clinical Evidence • Leverage HRS consensus statement • DEEP AF / Staged DEEP AF IDE Feasibility Trial • AF Centers of Excellence • Randomized CA vs. MIS PCORI Study • AtriCure Maze IV surgeon post training Submission (Ellenbogen) market
Slide 13: Growth Strategy: Penetrate LAA Opportunity
Growth Strategy: Penetrate LAA Opportunity Safety & Efficacy of Open and MIS AtriClip products is Well-Established Safety Efficacy • 14,000+ AtriClips implanted: • Mechanical closure reduces nidus for AF- related emboli – No reported erosions • Electrically isolates the appendage, – No clip migratio
Slide 14: Growth Strategy: Penetrate LAA Opportunity
Growth Strategy: Penetrate LAA Opportunity Significant Risks Associated with LAA LAA Exclusion Market Drivers • Most prevalent and life-threatening • The 2006 AHA/ACC/ESC guidelines: complication of AF is stroke – “The LAA should be removed from • LAA is the site of more than 90% of circulation when
Slide 15: Growth Strategy: International Expansion
Growth Strategy: International Expansion • EMEA office based in Amsterdam with infrastructure to support commercial activities • Direct sales in Germany, Switzerland (1) , Austria, Benelux and the UK in 2013 • Exclusive country distributors in other regions Europe Distributor relationships: Italy Tu
Slide 16: Growth Strategy: International Expansion
Growth Strategy: International Expansion International sales growing rapidly – 25% of total revenue International Revenue By Region (2007 – 2012) $20.0 $17.6 Other $18.0 Asia, 4% ROW, 3% $15.5 $0.6 $16.0 $0.5 $14.0 $6.7 $11.5 Benelux, China, 20% $12.0 $10.5 $6.3 13% $0.4 $0.5 $10.0 $8.3 $4.5 $8.0 $6
Slide 17: Key Financial Highlights
Key Financial Highlights Opportunity for… Accelerating revenue growth to 15%+ (8% 5yr. CAGR today) Expanding Gross Margins to over 75% (71% today) 16
Slide 18: AtriCure Highlights
AtriCure Highlights New leadership since November 2012 – Focus on accelerating growth, commercial execution, R&D innovation Large underpenetrated market with few sustainable treatment options Undisputed market leader in all types of surgical ablation – Broad and deep product portfolio – Strong IP in
Slide 19: Appendix
Appendix
Slide 20: Broadest Product Portfolio
Broadest Product Portfolio • Workhorse ablation system • Completely automated Synergy • Rapid: 10-30 second ablations • Used in Open and MIS • Deepest unidirectional lesion formation Probes/Pens • Totally thoracoscopic design • Simple user interface • Clip easily be repositioned – MIS and Open • Fab
Slide 21: Robust Product Pipeline
Robust Product Pipeline RF Ablation AtriClip Cryoablation Long Linear Ablation Next Generation AtriClip - BOA2 Cryo Console Adapter Box-AAM • One-sided approach to perform • Tailored to most difficult and • Ability to use re-usable cryo Pulmonary Vein Isolation challenging access platform with autom
Slide 22: Blue Chip Customer Base
Blue Chip Customer Base Top 10 “Heart Hospitals” Top 25 “Heart Hospitals” Top 50 “Heart Hospitals” U.S. News & World Report U.S. News & World Report U.S. News & World Report Non- Non- AtriCure AtriCure Hospitals, Hospitals, 4% 18% AtriCure Hospitals, 100% AtriCure AtriCure Hospitals, Hospitals, 96%