Aroa Biosurgery Ltd · ASX:ARX
Aroa Biosurgery — H1 FY24 Earnings Presentation
24 slides from Aroa Biosurgery's earnings presentation, Nov 28, 2023
Slide 1: Aroa Biosurgery Half Year Update November 2023
For personal use only AROA BIOSURGERY (ARX) HALF YEAR UPDATE NOVEMBER 2023 Unlocking regenerative healing for everybody
Slide 2: Important Notice and Disclaimer
|2 Important Notice and Disclaimer This presentation (Presentation) is dated 28 November 2023 and has been prepared by Aroa Biosurgery Ltd, New Zealand company number 1980577, ARBN 638 867 473 (AROA or the Company). Information in this Presentation The information in this Presentation is of a genera
Slide 3: AROA at a Glance
|3 AROA at a Glance Well established high-growth soft tissue regeneration company For personal use only Four product AROA ECM™ platform families for new products, line >US$3B1 TAM predominantly sold to US extensions & enables AROA’s hospitals for existing products tissue apposition platform US Direc
Slide 4: AROA ECM – Structure & Biology for Regenerative Healing
|4 AROA ECM – Structure & Biology for Regenerative Healing Unique Extracellular Matrix (ECM) derived from ovine forestomach with proven tissue regeneration properties across multiple products1-6 For personal use only 1. Irvine, S. M., et al. (2011). "Quantification of in vitro and in vivo angiogenes
Slide 5: AROA ECM restores functional tissue
|5 AROA ECM - restores functional tissue For personal use only 96 PRESENTATIONS/ 46 PRESENTATIONS/ 37 PRESENTATIONS/ PUBLICATIONS PUBLICATIONS PUBLICATIONS Volumetric fill- Rapid Tolerated and No negative formation of well contaminated field inflammatory vascularized and resistant to infection3,5 re
Slide 6: Substantial Growth Opportunities > $3B TAM
|6 Substantial Growth Opportunities > $3B1 TAM US TAM for AROA’s commercial products For personal use only 3.5 Symphony Market 3.0 Myriad Market 2.5 Endoform Market 2.0 US$b Ovitex & 1.5 Ovitex PRS Market 1.0 AROA share of 0.5 TAM 0.0 FY23 1. Management estimate. Sources: Idata, Soft Tissue Repair M
Slide 7: Myriad: acute surgical soft tissue repair
|7 Myriad: acute surgical soft tissue repair For personal use only Contains 2-, 3- or 5-layers of Morcellized Myriad AROA ECM For soft tissue repair, For management of acute and reinforcement or complex chronic wounds wounds
Slide 8: Symphony: Chronic Complex Wound
|8 Symphony: Chronic Complex Wound For dermal use in the hospital outpatient department and physician’s office to encourage tissue proliferation in patients with severely impaired healing For personal use only Initial Assessment Following Debridement Week 4 A combination cellular and tissue product
Slide 9: Myriad – Market Potential
|9 Myriad – Market Potential Soft Tissue Reconstruction Negative Pressure Wound Therapy 420,000 procedures p.a. | US$730M1 >1M procedures p.a. | > US$1B2 For personal use only Lower Limb Trauma Complex acute & Procedures 90,000 procedures, chronic wounds 180,000 procedures US$300M1 US$225M1 Myriad &
Slide 10: OviTex & OviTex PRS
| 10 OviTex & OviTex PRS “Reinforced Bioscaffold” which combines layers of the AROA ECM reinforced with polymers for abdominal wall repair (hernia) & soft tissue reinforcement For personal use only Licensed to TELA Bio for Licensed to TELA Bio Hernia Breast Reconstruction
Slide 11: Symphony – Market Potential
| 11 Symphony – Market Potential Market Size ~ US$1B1 ~ 1.7M Hard-to-heal chronic wounds3 For personal use only Wounds by Etiology and Volume Fewer applications Disruptive pricing Arterial Leg Ulcers Rapid volumetric fill Diabetic Foot Physician Ulcers Offices Reimbursement 302,609 ~ 475,000 CTP uni
Slide 12: OviTex & OviTex PRS – Market Potential
| 12 OviTex & OviTex PRS – Market Potential1 U.S. Hernia Surgery Market: U.S. Plastic & Reconstructive Surgery Market: ~$1.5 Billion Annual Opportunity ~$700 Million Annual Opportunity For personal use only Annual Procedures2 Complex, Moderate $360M Ventral/Abdominal ~60,000 Surgeons use products to
Slide 13: Clinical Research
| 13 Clinical Research Projects Initiatives FY2024 FY2025 FY2026 For personal use only • Prospective observation registry Registry • N=300 complex soft tissue reconstructions (225 recruited) • N=10 US sites (9 sites operational) Pivotal • Prospective intervention Myriad/NPWT study in acute Study rec
Slide 14: Total AROA ECM sales
| 14 Total AROA ECM sales 100 Total Product Sales For personal use only 90 38% YoY growth 80 70 • AROA Direct Sales represents product 46% YoY growth revenue from portfolio excluding 60 OviTex/OviTex PRS. Telabio Sales (Tela share) US$m 50 Telabio Sales (Aroa share) 52% YoY growth • AROA receives ~
Slide 15: TELA Bio Sales & Inventory
| 15 TELA Bio Sales & Inventory % of revenue US$m For personal use only $70 100% 90% $60 80% $50 70% 60% $40 50% $30 40% $20 30% 20% $10 10% $0 0% FY20 FY21 FY22 FY23 H1 FY24 (annualised) Financial Year TelaBio Inventory TelaBio Sales Aroa Sales to TelaBio TelaBio Inventory % of Revenue Reference to
Slide 16: AROA sales growth
| 16 AROA sales growth Validating and optimizing the sales model For personal use only 2020 - 2022 2023 - 2024 Focus on: 1. Sales productivity • Grow within accounts, more surgeons, more procedures Scale • Optimise sales team composition Scale • Build supporting infrastructure • Portfolio expansion
Slide 17: Enivo – tissue apposition platform
| 17 Enivo1 – tissue apposition platform Expected to improve the rate and quality of tissue healing with fewer complications • Complements AROA ECM products For personal use only • Near complete dead space closure at the conclusion of treatment (14 days), with a median seroma area of 2% and volume o
Slide 18: Investing to transform clinical outcomes
| 18 Investing to transform clinical outcomes Impact of Enivo Investment on EBITDA1 For personal use only • Enivo TAM >US$1B (management estimates) Normalised EBITDA ENIVO Normalised EBITDA (excl ENIVO) • Business highly profitable (normalised) setting aside 10 large investment in Enivo (orange bars
Slide 19: FY24 Guidance
| 19 FY24 Guidance1 For personal use only NZ$72-75m 85% NZ$1-2m Product Revenue Product Gross Margin Normalised EBITDA (YoY growth 19 – 24%) Total revenue ~ NZ$73-76m 1. Updated FY24 guidance is presented on a reported basis, reflects an expected NZ$/US$ exchange rate of 0.62 for H2 FY24 and is subj
Slide 20: H2 FY24 - Revenue growth & profitability
| 20 H2 FY241 - Revenue growth & profitability FY24 For personal use only H1 FY24 H2 FY24 Step change in financial Actual Forecast Guidance1 performance for H2 FY24 NZ$31m NZ$41-44m NZ$72-75m • Myriad to continue momentum Product Revenue Product Revenue Product Revenue NZ$32m Total Revenue NZ$40-44m
Slide 21: Financial outlook - Revenue growth & profitability
| 21 Financial outlook1- Revenue growth & profitability FY24 Guidance FY24+ 3 years • Myriad, a key driver to growth, with Symphony For personal use only complementing growth from FY24. NZ$72-75m 25%+ CAGR Product Revenue Product Revenue • Product gross margins continue to increase (YoY growth 19 –
Slide 22: FY24 Catalysts & Milestones
| 22 FY24 Catalysts & Milestones For personal use only Post-COVID TELA Bio Sales TELAFDA Enivo Bio clearance Sales AROA Sales Momentum Momentum Momentum COVID-19 expected to have a reduced Parallel initiatives being progressed to impact for remainder of FY23 Clinicalexpedite outcomes FDA& clearance
Slide 23: Q&A
? For personal use only Q&A Unlocking regenerative healing for everybody
Slide 24: Contact
CONTACT For personal use only James Agnew m +64 21 744 915 investor@aroabio.com Visit our website www.aroa.com and find us on LinkedIn at www.linkedin.com/company/aroa-biosurgery-limited/ 64 Richard Pearse Drive, PO Box 107111, Auckland Airport, Auckland 2150, Auckland 2022, New Zealand New Zealand