Aroa Biosurgery Ltd · ASX:ARX
Aroa Biosurgery — IPO Roadshow (July 2020)
34 slides from Aroa Biosurgery's IPO roadshow presentation, Jul 30, 2020
Slide 1: Aroa Biosurgery Investor Presentation July 2020
For personal use only Aroa Biosurgery Investor Presentation July 2020
Slide 2: Important notice and disclaimer
Private and Confidential June 2020 Not for release or distribution in the United States Slide 2 Important notice and disclaimer For personal use only This presentation (Presentation) is dated July 2020 and has been prepared by Aroa Biosurgery Ltd, New Zealand company number 1980577, ARBN 638 867 473
Slide 3: Important notice and disclaimer (cont.)
Private and Confidential June 2020 Not for release or distribution in the United States Slide 3 Important notice and disclaimer (cont.) For personal use only Restriction on distribution The distribution of this Presentation (including an electronic copy) outside Australia may be restricted by law. A
Slide 4: Aroa at a glance
Private and Confidential June 2020 Not for release or distribution in the United States Slide 4 Aroa at a glance For personal use only Well established high-growth soft tissue regeneration company NZ$22m >70% GM EBITDA Positive1 product revenue FY’20 FY’20 5 patented products >US$1.52b TAM 4 million
Slide 5: Business Summary
Private and Confidential June 2020 Not for release or distribution in the United States Slide 5 Business Summary For personal use only Company • Soft tissue regeneration company Overview • Commenced operations in 2008, based in Auckland, NZ >140 personnel1 • Commercial stage and predominantly focuse
Slide 6: Endoform platform technology
Private and Confidential June 2020 Not for release or distribution in the United States Slide 6 Endoform® platform technology For personal use only All Aroa’s products utilise its proprietary Endoform ® platform which is a unique Extracellular Matrix (ECM) derived from sheep forestomach Laminin Coll
Slide 7: Soft tissue reconstruction technologies
Private and Confidential June 2020 Not for release or distribution in the United States Slide 7 Soft tissue reconstruction technologies For personal use only Biologics and Synthetics have different properties and use cases Product Infection Infection Use Unique selling point Category Regeneration In
Slide 8: Unlocking regenerative healing
Private and Confidential June 2020 Not for release or distribution in the United States Slide 8 Unlocking regenerative healing For personal use only Endoform® technology offers superior regenerative performance at a significantly lower cost than other biologics enabling more patients to have access
Slide 9: Aroa product range
Private and Confidential June 2020 Not for release or distribution in the United States Slide 9 Aroa product range For personal use only Addresses a wide range of applications and large addressable markets US TAM Sales Brand name Use case FY’18 FY‘19 FY’20 FY’21 FY’22 FY23 Launch (USD) Channel Endof
Slide 10: Endoform Natural & Antimicrobial
Private and Confidential June 2020 Not for release or distribution in the United States Slide 10 Endoform® Natural & Antimicrobial For personal use only A “Tissue Matrix” used to “short-cut” healing in diabetic foot ulcers and venous ulcers Week 0 Week 5 Week 8 Endoform Dermal Template is a thin sin
Slide 11: Ovitex
Private and Confidential June 2020 Not for release or distribution in the United States Slide 11 Ovitex® For personal use only A “Reinforced Bioscaffold” which combines Endoform with synthetic polymers to provide a strong and durable hernia repair Ovitex® is a thicker product comprised of multiple E
Slide 12: Myriad
Private and Confidential June 2020 Not for release or distribution in the United States Slide 12 Myriad™ For personal use only A “Biological Graft” which supports rapid tissue growth for surgical reconstruction of external and internal soft tissues. Pre-op Week 0 Week 1 Week 2 Myriad™ is a thicker p
Slide 13: Symphony
Private and Confidential June 2020 Not for release or distribution in the United States Slide 13 Symphony For personal use only Developed off the strength of Aroa’s proprietary extracellular matrix platform - Endoform™ • Designed to support healing of complex wounds with severely impaired healing, r
Slide 14: Further Products
Private and Confidential June 2020 Not for release or distribution in the United States Slide 14 Further Products For personal use only Aroa has a pipeline of products which leverage the Endoform® technology platform to address unmet clinical needs Ovitex® PRS sNPWT Breast surgery Improved healing,
Slide 15: Aroa's products have broad applications
Private and Confidential June 2020 Not for release or distribution in the United States Slide 15 Aroa’s products have broad applications For personal use only The regenerative and immune modulating properties of Endoform ® allow a wide range of external and internal uses Dermal Implantable Implantab
Slide 16: Clinically effective wound products
Private and Confidential June 2020 Not for release or distribution in the United States Slide 16 Clinically effective wound products For personal use only Endoform demonstrates increased wound closure rates at 12 weeks in complex wounds compared to market leading biologics which lowers the cost of t
Slide 17: BRAVO Clinical Study
Private and Confidential July 2020 Not for release or distribution in the United States Slide 17 BRAVO Clinical Study For personal use only 91 patient multi-centre study with simple and complex ventral hernias in United States 2%2 1.The level of recurrence at 90 days, 12 & 24 months are key metrics
Slide 18: Sales channels
Private and Confidential June 2020 Not for release or distribution in the United States Slide 18 Sales channels For personal use only Mix of arrangements for products/specialties to maximize Aroa’s operating leverage Channel Description Products Target Specialties Call point Sales force (FTE) 50:50
Slide 19: Growing US sales
Private and Confidential June 2020 Not for release or distribution in the United States Slide 19 Growing US sales For personal use only Building from an established customer base • Clinical evidence to support faster closure rates drives uptake • Products already being used in over 600 US hospitals
Slide 20: Aroa's US customer base
Private and Confidential June 2020 Not for release or distribution in the United States Slide 20 Aroa’s US customer base For personal use only >600 existing hospital accounts, on contract with major GPO’s & stocked by major surgical distributors Selected Hospital Selected Group Purchasing Selected G
Slide 21: Large global opportunity
Private and Confidential June 2020 Not for release or distribution in the United States Slide 21 Large global opportunity For personal use only Aroa has a large untapped opportunity globally outside of the US European Union • Outside the United States, Canada • EDT Natural Aroa intends to sell throu
Slide 22: Significant barriers to entry
Private and Confidential June 2020 Not for release or distribution in the United States Slide 22 Significant barriers to entry For personal use only Multiple challenges for future competitors to overcome • Aroa’s leading products are covered by a patent portfolio that includes 10 patents and 25 pend
Slide 23: Manufacturing and production
Private and Confidential June 2020 Not for release or distribution in the United States Slide 23 Manufacturing and production For personal use only Well established commercial manufacturing facility Unique process produces a high-quality product • Highly attuned to the need to preserve native archit
Slide 24: Management team
Private and Confidential June 2020 Not for release or distribution in the United States Slide 24 Management team For personal use only Aroa is led by a highly experienced management team with long tenure Brian Ward James Agnew Brad Adams Simone Von Fircks Dr. Barnaby May CEO, Founder CFO VP – Commer
Slide 25: Board of Directors
Private and Confidential June 2020 Not for release or distribution in the United States Slide 25 Board of Directors For personal use only Aroa has a highly experienced Board with healthcare, operational and financial experience Jim Mclean Brian Ward Steve Engle Phil McCaw John Pinion II John Diddams
Slide 26: Financial Overview
Private and Confidential June 2020 For personal use only Not for release or distribution in the United States Slide 26 Financial Overview
Slide 27: Revenue growing and margin expanding
Private and Confidential June 2020 Not for release or distribution in the United States Slide 27 Revenue growing and margin expanding For personal use only Revenue by Channel ($000s) and gross margin Commentary Total product revenue Product Gross Margin • Demonstrated growth in Endoform business acr
Slide 28: Improving Product Gross Margins and investment in Sales and Marketing
Private and Confidential June 2020 Not for release or distribution in the United States Slide 28 Improving Product Gross Margins and investment in Sales and Marketing for future growth For personal use only Summary Pro Forma Historical Results Key pro forma operating metrics Commentary NZ$'000s Note
Slide 29: Milestone & Summary
Private and Confidential June 2020 For personal use only Not for release or distribution in the United States Slide 29 Milestone & Summary
Slide 30: Well positioned to continue growth trajectory
Private and Confidential June 2020 Not for release or distribution in the United States Slide 30 Well positioned to continue growth trajectory For personal use only Key accomplishments in Key milestones through 2020 Selected medium term milestones 2018 – YTD 2020 2018 • Symphony FDA clearance • Symp
Slide 31: Investment highlights
Private and Confidential June 2020 Not for release or distribution in the United States Slide 31 Investment highlights For personal use only Aroa’s products have a strong competitive advantage and a track record of successful US growth Established Proprietary Expanding Proven commercial portfolio of
Slide 32: For more information
Private and Confidential June 2020 For personal use only Not for release or distribution in the United States Slide 32 For more information: Simon Hinsley Investor Relations m +61 401 809 653 shinsley@aroabio.com Matt Wright Media m +61 451 896 420 matt@nwrcommunications.com.au AROABIO.COM
Slide 33: References for Slides 8 & 9
Private and Confidential June 2020 Not for release or distribution in the United States Slide 33 References for Slides 8 & 9 For personal use only 1. FitzGerald, J.F. and A.S. Kumar, Biologic versus Synthetic Mesh Reinforcement: What are Immunol, 2008. 20(2): p. 109-16. Extracellular Matrix to Impro
Slide 34: Contacts
Private and Confidential June 2020 Not for release or distribution in the United States Slide 34 Contacts For personal use only Brian Ward James Agnew CEO CFO m +64 21 727646 m +64 21 744 915 brian.ward@aroabio.com james.agnew@aroabio.com AROABIO.COM Aroa Biosurgery 2 Kingsford Smith Place, Auckland