Iridex Corporation · NASDAQ:IRIX
Iridex — Investor Presentation (January 2016)
27 slides from Iridex's investor presentation, Jan 12, 2016
Slide 1: IRIDEX January 2016
Nasdaq: IRIX January 2016 Exhibit 99.1
Slide 2: Safe Harbor
Safe Harbor Participation in this presentation requires that you be aware of the Federal legislation regarding forward-looking statements. Accordingly, during the course of this presentation we may make forward-looking statements regarding future events or the future performance of the Company. We c
Slide 3: IRIDEX Corp
IRIDEX Corp A leading global provider of innovative laser systems, delivery devices, consumables and services to the Ophthalmology market.
Slide 4: Glaucoma and Retinal Diseases
Glaucoma Retinal Diseases Retinal Diseases & Glaucoma
Slide 5: Macro Trends Driving Growing Demand
Macro Trends Driving Growing Demand Onset of obesity/diabetes epidemic Aging worldwide population Drug costs and logistics in developing world Source: IDF Diabetes Atlas. 4th Edition. International Diabetes Federation, 2009 Market Scope 2010 Comprehensive Global Report Diabetes Facts 54% global grow
Slide 6: Changing Landscape in the US
Changing Landscape in the US Fee for service model breaking down Efficiency driving better utilization of healthcare dollars
Slide 7: Value Based Medicine
Value Based Medicine Becoming a global theme Costs are prohibitive Logistics are difficult
Slide 8: Tipping Point Towards Value Based Medicine
Tipping Point Towards Value Based Medicine
Slide 9: Traditional vs. MicroPulse Laser Treatment of DME
Pre-treatment Fundus Auto- fluorescence and OCT Microperimetry 1 Yr. Post-treatment Traditional vs. MicroPulse® Laser Treatment of DME Pre-treatment 1 Yr. Post-treatment Fovea-Friendly™ Source: Vujosevic S, Bottega E, Casciano M, Pilotto E, Convento E, Midena E. Retina 2010 Note: Red circle denotes
Slide 10: Efficacy, Efficiency, Economics and Safety of MicroPulse
Efficacy Traditional Photocoagulation to MicroPulse® Photostimulation for DME Cardillo, IOVS 2011 Midena, Retina 2012 Vujoservic, Retina 2015 Control randomized trials showed both improved vision and retinal sensitivity. Efficiency Caskey, OT 2013 Escaf RP 2015 More treatable patients. Improved pati
Slide 11: Retina Opportunity – US Market
Source: American Medical Association Retina Opportunity – US Market Historical Market predominantly replacement opportunity New Market Fovea-Friendly™ laser for retinal treatment and glaucoma (MLT) Ophthalmologists by Specialty More than doubles our addressable market in the US
Slide 12: Retinal Diseases & Glaucoma
Retinal Diseases & Glaucoma Glaucoma Retinal Diseases
Slide 13: Glaucoma Macro Trends
Market Scope 2010 Comprehensive Global Report Vrijens B. BMJ. 2008;336(7653):1114-1117 Glaucoma Macro Trends Estimated 65 million patients worldwide1, 17 m diagnosed Aging population demographic - 50% of glaucoma patients are above 70 Compliance is the issue - 50% of patients stop taking meds at 1 y
Slide 14: Glaucoma Market - Worldwide
Glaucoma Market - Worldwide Existing footprint with G-Probe™ and MLT laser
Slide 15: Cyclo G6 Laser Console and Disposable Probes
Intelligence resides in the probe, not the appliance Revolutionary strategy and provides inherent competitive advantage Ability to treat various stages along the glaucoma continuum of care New Glaucoma Focused Appliance with Captive Disposables for Procedures Cyclo G6™ Laser Console Probes in Dispos
Slide 16: Potential Market is Large and Growing
In the U.S. there are 1,740 locations that perform invasive glaucoma surgery There are an additional ~3,000 locations that perform cataract surgery Most facilities have more multiple treatment rooms – the procedure can be performed in-office There are 19,000 ophthalmologists in the U.S., and the Cyc
Slide 17: Cyclo G6 – Launch Progress Update
Cyclo G6 – Launch Progress Update Cumulative System Placements Sales / Utilization Update Key Customers and Order Amounts Laser installation ahead of plan Multiple lasers purchased by key accounts – 9 accounts purchased between 2 and 4 lasers Higher probe utilization rate Expected utilization of 10
Slide 18: Value Proposition Supported by Promising Clinical Evidence
Value Proposition Supported by Promising Clinical Evidence NUHS Prospective Clinical Study Additional Studies Underway Teaching institution in Philadelphia: AGS 2015 - Retrospective study shows 39% IOP reduction (N=19) AGS 2016 – Ongoing prospective study reporting 58% IOP reduction (N=10) at upcomi
Slide 19: Procedural Opportunity
Procedural Opportunity MicroPulse P3 G-Probe Drugs Trabeculoplasty MIGS Traditional Surgery
Slide 20: US Glaucoma Procedure Volumes
US Glaucoma Procedure Volumes Over 3 million have glaucoma but only half of these know they have it1 31 million prescriptions filled in 2013, >$2.0 bil market2 Estimated 500,000 laser procedures in 20143 Estimated 200,000 glaucoma surgical procedures3 Glaucoma Research Foundation IMS Health Market S
Slide 21: Financial Metrics and Model
Financial Metrics and Model
Slide 22: Key Financial Metrics
2015 Revenues down ~2.4% due to Q2 Production Issues 2014 Revenue growth 12%, EBIT1 growth 20% 2013 Revenue growth 13% and return to profitability Key Financial Metrics ($000s) Note – Q1 2013 non recurring credit of $0.5m removed for comparison purposed - Q4 15 Revenues – estimated to be between $11
Slide 23: Reconciliation of GAAP to EBIT
Reconciliation of GAAP to EBIT Operating Results Q1 15 Q1 14 Q1 13 Q1 12 GAAP Net income $246 $487 $874 ($265) Proceeds from demutualization of insurance carrier 0 0 (473) 0 Other expense, net 7 97 18 27 Income Tax Provision 150 13 5 2 Non-GAAP EBIT $403 $597 $424 ($236) Q2 15 Q2 14 Q2 13 Q2 12 GAAP
Slide 24: Financial Model Goals
Financial Model Goals 60% consumable, 40% equipment 50/50 retina and glaucoma 40/60 US and International 55+% gross margin, 15+% operating margin
Slide 25: Summary of Revenue Drivers
Summary of Revenue Drivers Macro population trends MicroPulse® Technology a paradigm shift Introduction of Cyclo G6™ portfolio within glaucoma – procedure focus Profitable product line extensions within retina
Slide 26: Why IRIDEX Now
Why IRIDEX Now Proprietary products Attractive markets Recurring revenue Strong balance sheet Organic and acquisitive growth Value upside>downside
Slide 27: January 2016
January 2016