Photocure ASA · OSL:PHO
Photocure ASA — Q3 2014 Earnings Presentation
22 slides from Photocure ASA's earnings presentation, Nov 6, 2014
Slide 1: Building a Specialty Pharma Company: Results of Third Quarter 2014
PHOTOCURE ASA BUILDING A SPECIALTY PHARMA COMPANY RESULTS OF THIRD QUARTER AND FIRST NINE MONTHS 2014 6 NOVEMBER 2014 Kjetil Hestdal, MD, President & CEO Erik Dahl, CFO
Slide 2: Disclaimer
DISCLAIMER The information included in this Presentation contains certain forward-looking statements that address activities, events or developments that Photocure ASA (“the Company”) expects, projects, believes or anticipates will or may occur in the future. These statements are based on various as
Slide 3: Highlights Third Quarter 2014
HIGHLIGHTS THIRD QUARTER 2014 • Total sales revenues of Hexvix/Cysview increased 34% in third quarter and 26% year to date to NOK 67.2 million (NOK 53.4 million) – Hexvix/Cysview global in-market sales value YTD increased 23% to NOK 131 million • Hexvix/Cysview franchise profitable YTD after six con
Slide 4: Commercial Update
Commercial Update ————i( (sss
Slide 5: Hexvix/Cysview Strong Growth in All Markets
HEXVIX/CYSVIEW STRONG GROWTH IN ALL MARKETS Global in-market unit sales (by Q) • Hexvix/Cysview global in-market volume growth YOY 12% in the quarter and 13% YTD • Value of in-market sales of Hexvix/Cysview increased YOY 19% in the quarter and 23% YTD • Overall franchise has attained profitability G
Slide 6: Hexvix/Cysview Solid Performance in Nordics
HEXVIX/CYSVIEW SOLID PERFORMANCE IN NORDICS • Photocure own sales revenues in the US and Nordics increased 33% in 3Q to NOK 11.1 Own Hexvix/Cysview in-market unit sales million and 23% YTD to NOK 31.0 million Nordic and US • Key drivers include strong customer demand and price increases • Nordic rev
Slide 7: Hexvix/Cysview Increased Momentum in US
HEXVIX/CYSVIEW INCREASED MOMENTUM IN US • US 3Q revenue growth of 63%, YTD revenue growth of 44% • Key drivers include volume growth of 60% in 3Q and 32% YTD, price increases and FX • Despite limited 2014 CMS reimbursement policy, Blue Light Cystoscope placements increased to 49 in 3Q, compared to 3
Slide 8: Hexvix/Cysview Ipsen Strong Performance in Europe
HEXVIX/CYSVIEW IPSEN STRONG PERFORMANCE IN EUROPE Hexvix Partner Unit Sales Per Quarter • Partner revenue increased 34% in 3Q to NOK 13.0 million, YTD growth increased 28% to NOK 36.2 million • Strong customer demand with end user volume growth of 13% YTD • Growth driven mainly by sales in France, I
Slide 9: Pipeline Update
Pipeline Update tees
Slide 10: Creating Value: Diverse Product Portfolio
CREATING VALUE DIVERSE PRODUCT PORTFOLIO Technology Indication Phase 1 Phase 2 Phase 3 Status Detection of License agreement with Salix Lumacan® PDD colorectal terminated cancer Treatment of Positive Phase 2b results Visonac® PDT moderate to SPA and PIP approved severe acne Exploring partnerships Po
Slide 11: Visonac Phase 3 Ready Asset
VISONAC PHASE 3 READY ASSET • High unmet need for novel treatments for moderate/ severe acne – 1st Photodynamic treatment for inflammatory acne – Broad geographic fit • Positive Phase 2b results – Significant reduction in inflammatory lesions – Overall improvement in acne severity – Well tolerated r
Slide 12: Cevira a Major Opportunity
CEVIRA A MAJOR OPPORTUNITY • Breakthrough single use and fully integrated drug-device technology to satisfy high need for novel therapies to treat global epidemic of HPV/CIN populations • Results of the Phase 2b trial are significant – Significant overall response in patients with CIN 2 – High clear
Slide 13: Determining Optimal Lumacan Strategy
DETERMINING OPTIMAL LUMACAN STRATEGY • Global development and commercialization rights licensed to Salix in October 2010 – Received upfront and development payments of $8.5M to date • Following the proposed merger agreement between Salix and Cosmo Pharmaceuticals SpA Photocure and Salix agreed to te
Slide 14: Financials
Financials
Slide 15: Hexvix/Cysview - Continued Growth Third Quarter 2014
HEXVIX/CYSVIEW - CONTINUED GROWTH THIRD QUARTER 2014 • Revenue from own sales of Hexvix/ SALES - MNOK Q3 '14 YTD '14 Cysview increased 33% in 3Q and 23% YTD Hexvix own sales 11,1 31,0 YoY growth 33 % 23 % – Nordic 3Q revenue growth of 21%, YTD growth of 17%. Hexvix partner sales 13,0 36,2 YoY growth
Slide 16: Operating Expenses Third Quarter 2014
OPERATING EXPENSES THIRD QUARTER 2014 • Total Opex at NOK 31.4 million in 3Q. YTD MNOK Q3 '14 YTD '14 at NOK 93.4 million, a reduction of 11% Research & Development 7,0 23,0 YoY growth -18 % -5 % • R&D expenses at NOK 7.0 million in 3Q Sales & Marketing 13,1 40,6 – YTD main activity re-analysis of t
Slide 17: Profit & Loss Third Quarter 2014
PROFIT & LOSS THIRD QUARTER 2014 MNOK Q3 '14 Q3 '13 YTD '14 YTD '13 Hexvix / Cysview revenues 24,1 18,0 67,2 53,4 Other sales revenues 0,8 0,1 1,6 0,7 Signing fee and milestones 31,9 1,1 34,2 3,2 Total revenues 56,8 19,2 103,0 57,3 Gross profit 55,2 17,7 97,8 52,4 Operating expenses -31,4 -32,6 -93,
Slide 18: Hexvix/Cysview Franchise Third Quarter 2014
HEXVIX/CYSVIEW FRANCHISE THIRD QUARTER 2014 • LTM (last twelve months) 3Q 2014 Hexvix Sales & Opr Result LTM (NOK mill) operating result for commercial activities at NOK +8.7 million compared to NOK -25.4 million LTM 3Q 2013 • Six consecutive quarters with result improvements, driven by both revenue
Slide 19: Cash Flow Third Quarter 2014
CASH FLOW THIRD QUARTER 2014 MNOK Q3 '14 Q3 '13 YTD '14 YTD '13 Cash flow from: - Operations 25,2 -17,7 -3,2 -82,0 - Investments 0,9 1,0 2,8 3,6 - Financing activities 0,0 0,5 0,0 -42,3 Net change in cash 26,1 -16,3 -0,4 -120,6 Ending cash balance 166,8 182,2 166,8 182,2 • 3Q 2014 cash flow from ope
Slide 20: Balance Sheet per 30 September 2014
BALANCE SHEET PER 30 SEPTEMBER 2014 • Non current assets includes MNOK 30.09 31.12 NOK 31.9 million in shares in 2014 2013 PCI Biotech and deferred tax Non-current assets 106,5 104,8 asset of NOK 49.1 million Inventory & receivables 31,7 29,7 Cash & equivalents 166,9 167,3 • No interest bearing debt
Slide 21: Summary and Outlook
Summary and Outlook
Slide 22: Good Progress Made Towards 2014 Goals
GOOD PROGRESS MADE TOWARDS 2014 GOALS KEY 2014 OBJECTIVES YTD ACHIEVEMENTS Hexvix/Cysview global in-market unit sales growth of YTD growth 13% ≥10% Obtain sustainable reimbursement solution in US Bill with strong bipartisan support introduced to US Congress Secure partnership for development and Est