Slide 1: Corporate Overview
Corporate Overview December 2021 Brian Pedlar, CEO TSX-V: COV OTCQX: CVALF www.covalon.com | 1-877-711-6055 Millions of Covalon products are used every year by clinicians in hospitals around the world to help protect patients from infection.
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Certain statements included in this Memorandum may be considered forward-looking statements. These forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “estimate”, “exp
Slide 3: Covalon's Infection Prevention Technologies Save Lives
Covalon’s Infection Prevention Technologies Save Lives Covalon is an innovation-driven medical device company, with a strong portfolio of patented dressings and technology that make it easier for health care providers to protect patients from infection and help patients heal. Whether suffering from
Slide 4: Company Overview
Company Overview ▪ Founded: 1999 ▪ Headquarters: Mississauga, ON, Canada ▪ Business Model: ✓ Develop and sell new patented medical consumable products that take market share from major competitors ✓ Develop and license technology to major medical Key Financials1 companies through our Medical Coating
Slide 5: Hospital Acquired Infections are a Major Financial Burden
Hospital Acquired Infections are a Major Financial Burden • Annually up to 1.7 million people get infected because they visit a hospital in the U.S. • 100,000 of those people die • The U.S. spends $20 billion a year trying to treat and prevent these infections • 70% of those infections are preventab
Slide 6: Uninsured Infections Cost Hospitals $9.8 billion each year
Uninsured Infections Cost Hospitals $9.8 billion each year Cost per Case by Infection Types % share of Total Annual Costs $45,814 Catheter-assoc. urinary-tract infections, $30 million, 0.4% $40,144 The 5 most Clostridium Central line- difficile assoc. common infections, bloodstream hospital- $1.5 bi
Slide 7: Chronic wounds are considered a silent epidemic
Chronic wounds are considered a silent epidemic Advanced Wound Care Dressing Market (1) ~US$8.9+ Billion Market Negative Pressure Wound Therapy 20% Advanced Wound Dressing Biologics 17% 54% 9% Other 7 1. BIS Research; Global Advanced Wound Care Market (2019).
Slide 8: Covalon Highlights
Covalon Highlights 1 Well-funded and backed by very successful major investors, Covalon is positioned to accelerate top-line growth of its impressive product portfolio in the United States 2 Sale of AquaGuard product line transformed Covalon’s balance sheet - $24 million in cash and no debt position
Slide 9: Sale of AquaGuard product line a transformative event for Covalon
Sale of AquaGuard product line a transformative event for Covalon • Covalon Announced the Sale of its AquaGuard® Product Line for US$30 Million or Approximately CDN$38 Million • Purchase and sale agreement executed with simultaneous closing with TIDI Products, LLC as buyer • The transaction material
Slide 10: Strong Track-Record of Revenue Growth
Strong Track-Record of Revenue Growth Historical Revenue Profile (C$MM) 28% 54% $34.0 5-year CAGR1 LTM Gross Margin $27.3 $26.7 $25.8 $27.5 $9.1 $7.6 $6.7 $3.8 $4.1 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 LTM Development Phase Early Commercialization Phase Commentary Revenue g
Slide 11: Operating Expenses and Cash
Operating Expenses and Cash Operating Expenses (C$MM) Cash and Debt 35.0 47% 30.0 Reduction Cash & Cash Equivalents: 25.0 Cash ~$24.0 M 20.0 15.0 No DEBT 10.0 5.0 0.0 F2019 F2020 LTM LTM Adjusted Commentary • Operating expenses reduction driven by : • Decrease in personnel cost • Reduction of agency
Slide 12: Covalon's Platform Technologies
Covalon’s Platform Technologies Lucrative and Proven Infection Management Technology Platforms Platform Description Flagship Product Brands TAM(1) Technology Patented platform used to manufacture a family of products that treat Biological Collagen Matrix chronic and infected wounds (e.g. diabetic fo
Slide 13: Platform Product Advantages vs. Competitors
Platform Product Advantages vs. Competitors Covalon’s products have demonstrated competitive advantages through clinical studies and improved patient outcomes according to end-user customers Covalon Products Primary Competitors Competitor Products Covalon Advantage ▪ Patented manufacturing process t
Slide 14: Advanced Wound Care Collagen Portfolio
Advanced Wound Care Collagen Portfolio ColActive Plus’ patented formulation offers wound care professionals the NEW advantage of permanent inhibition of elevated protease activity and optimal moisture balance to create a suitable environment for wound healing. 14
Slide 15: Advanced Wound Care Product Portfolio
Advanced Wound Care Product Portfolio CovaWound (other AWC) Product Portfolio Alginate dressing, and with silver Self-adherent soft silicone foam dressing, and with border Alginate dressing with silver Self-adherent soft silicone foam Soft hydrophilic wound contact dressing with border for use on la
Slide 16: Our Collagen Platform Competes With Market Leaders In the United States
Our Collagen Platform Competes With Market Leaders In the United States Collagen Dressing Market in United States • Brand name carries strong reputation in the United States and is supported by significant clinical evidence • Covalon is in the top 3 of collagen dressing #1 Market Position #2 Market
Slide 17: Our Collagen Works
Our Collagen Works Real People, Life Changing Stories Diabetic Foot Ulcer After 5 Weeks - Healed Diabetic Foot Ulcer – Scheduled for Amputation After 6 Months - Healed 17
Slide 18: Our Collagen Platform has a Clear Path to Substantial Revenue Growth
Our Collagen Platform has a Clear Path to Substantial Revenue Growth • Expand distribution network in the U.S. Existing Products • Addition of direct sales personnel exclusively focused on Collagen to further support our distribution partners in Sales in the U.S. the U.S. • Additional clinical studi
Slide 19: Antimicrobial Silicone Dressings
Antimicrobial Silicone Dressings List of Products within Antimicrobial Silicone Adhesive Platform Vascular Access Antimicrobial clear silicone adhesive vascular access dressing with chlorhexidine and silver Antimicrobial silicone film for pre-operative skin Perioperative Care (Surgical) Self-adheren
Slide 20: 200+ IV Clear customers in the United States
✓ 200+ IV Clear customers in the United States ✓ 8 of the top Children’s hospitals in North America ✓ Dominant market share for IV Clear in Middle East ✓ IV Clear – World’s only antimicrobial silicone adhesive IV dressing ✓ VALGuard – Only line-to-line contamination protection cover 20 20 20
Slide 21: Our Patented Antimicrobial Silicone Products are Better and Safer for Patients
Our Patented Antimicrobial Silicone Products are Better and Safer for Patients Clear Path for Substantial Revenue Growth • We compete in the United States with 3M and Medline by selling directly to our AquaGuard Film Dressing Market in United States hospitals with our U.S. sales team • Covalon’s IV
Slide 22: Covalon's Products are Better for Patients
Covalon’s Products are Better for Patients Real People, Life Changing Stories Our Products Make a Difference To Covalon’s Silicone Adhesive These Patients 3M’s Adhesive 22
Slide 23: Both Clinicians and Patients Love our Antimicrobial Silicone Products
Both Clinicians and Patients Love our Antimicrobial Silicone Products SurgiClear on Social Media – Customer Posts 23
Slide 24: Medical Device Coating Platform
Medical Device Coating Platform A proprietary free radical UV photo- polymerization “grafting from” process that results in a micron level functionalized surface. Completely customizable, CovaCoat® is lubricious and low particulate, enhancing the safety and functionality of medical devices, and can
Slide 25: Medical Coating Platform Creates Value for Customer Medical Devices
Medical Coating Platform Creates Value for Customer Medical Devices Clear Value Propositions For Upgrading Medical Devices 1 Low Particulate Generation 6 FDA Cleared Products (e.g. SilverTouch) 2 Durable Lubricity 7 A Quicker Path to Market 3 Functionalization/API Loading 8 In-house Manufacturing Fa
Slide 26: Medical Device Coating Platform Product has Clear Revenue Growth Potential
Medical Device Coating Platform Product has Clear Revenue Growth Potential • Core capabilities and value-add recognized and paid for by end clients; mission critical capabilities sought out by world’s largest high profile medical companies • Potential for capturing an outsized market share of the A
Slide 27: Covalon's Market Leading R&D Capabilities
Covalon’s Market Leading R&D Capabilities Leading R&D and Regulatory Expertise Sought by Global Healthcare Companies Development Partnership Model Selected Partners & Distributors — Covalon works with leading medical device companies to bring new products to market, or to improve/enhance existing pr
Slide 28: Covalon Highlights
Covalon Highlights 1 Well-funded and backed by very successful major investors, Covalon is positioned to accelerate top-line growth of its impressive product portfolio in the United States 2 Sale of AquaGuard product line transformed Covalon’s balance sheet - $24 million in cash and no debt position
Slide 29: Questions?
Questions? Millions of Covalon products are used every year by clinicians in hospitals around the world to help protect patients from infection.
Slide 30: Thank You!
Thank You! Millions of Covalon products are used every year by clinicians in hospitals around the world to help protect patients from infection.