Opsens — Investor Presentation (April 2022)
42 slides from Opsens's investor presentation, Apr 27, 2022
Slide 1: OpSens, Inc. Investor Presentation 2022
OpSens, Inc. (TSX:OPS) (OTCQX:OPSSF) Investor Presentation 2022 OPSSF
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measure
Forward-Looking Statements and Non-IFRS Financial Measure Forward-Looking Statements This presentation contains forward-looking statements with respect to the Company. These forward-looking statements, by their nature, require the Company to make certain assumptions and necessarily involve known and
Slide 3: OpSens Overview
OpSens Overview Cardiovascular Business Based on Proprietary Optical Technology For Rapidly Growing Applications OpSens’ SavvyWire ▪ Transcatheter Aortic Valve Ventricular assist device Replacement guidewire Abiomed - Impella Heart Pump BUSINESS PARTNERSHIPS AORTIC VALVE STENOSIS ▪ First-in-man stud
Slide 4: OpSens - Investment Highlights
OpSens - Investment Highlights FY ends August 31st CA $ M Revenue Growth • Strong Core Revenue growth (+50%) between 2016 and 2019 • Lead by continuous growth in FFR (Coronary Artery Disease) $40 $34.5 $35 $32.8 product $30 $29.5 $25 $24.0 $20 $17.8 • Potential breakthrough product . The SavvyWire f
Slide 5: Coronary Artery Disease
Coronary Artery Disease OpSens’ OptoWire for Physiological Measurement
Slide 6: Coronary Artery Disease: Market
Coronary Artery Disease: Market FFR/dPR Global Market (US$ Million) Coronary Artery Disease Overview Blockage or narrowing (stenosis) of the arteries The Global FFR Market is expected to $1B that supply blood to the heart muscle, often due reach US$1 billion by 2025, growing at a to a buildup of fat
Slide 7: Coronary Artery Disease: Procedure Flow
Coronary Artery Disease: Procedure Flow Measure Confirm Implantation FFR Scale Coronary Disease + + Restoration >0.80 may be treated without stent Cardiologist measures Cardiologist delivers Cardiologist measures 0.80 blood pressure stent to blockage over blood pressure before/after a the OptoWire.
Slide 8: Coronary Artery Disease: Example of Utilization
Coronary Artery Disease: Example of Utilization Watch video 8
Slide 9: Coronary Artery Disease: OptoWire Competitive Advantages
Coronary Artery Disease: OptoWire Competitive Advantages Performance – Superior Guidability Improved Accuracy Freedom in Workflow Access complex anatomies with workhorse-like performance Repeat measurements Manipulate like your WH guidewire and with the same accuracy assess post-PCI and multi-vessel
Slide 10: Coronary Artery Disease: OptoWire Competitive Advantages
Coronary Artery Disease: OptoWire Competitive Advantages ACCURACY (DRIFT) WORKHORSE/CONNECTIVITY Drift in pressure wires Electronic wires ▪ St Jude Medical < 7 mmHg / hour ▪ PhilipsVolcano < 30 mmHg / hour New fiber optic wires ▪ OpSens < ~0 mmHg / hour “Something about technical pitfalls: The most
Slide 11: Coronary Artery Disease: OpSens' OptoWire
Coronary Artery Disease: OpSens’ OptoWire FFR/dPR OptoWire Revenue Global Market Share Breakdown (CA$ M) $22.9 OptoWire 26% 5-Year CAGR* $20.0 (OpSens) $18.7 4% Others $14.2 6% $12.4 $5.2 Electrical Wires (Abbott/Phillips) 90% 2016 2017 2018 2019 2020 2021 *Compound annual growth rate FY ending Augu
Slide 12: Coronary Artery Disease: OptoWire Sales Channels
Coronary Artery Disease: OptoWire Sales Channels* Canada Japan ▪ Sales Channels: Direct ▪ Sales Channels: Distributor ▪ Market Size: US$20 M ▪ Market Size: US$90 M ▪ OptoWire Market Share: 15% ▪ OptoWire Market Share: 15% United States EMEA ▪ Sales Channels: Direct/GPO ▪ Sales Channels: Distributors
Slide 13: Manufacturing Efficiencies Driving Margin Expansion
Coronary Artery Disease: Manufacturing Efficiencies Driving Margin Expansion OptoWire COGS Improvements OptoWire COGS* 54% TTM* GROSS MARGINS ▪ Major improvements in manufacturing efficiencies in the last three years ▪ OptoWire III driving significant additional savings ▪ Economies of scale with vol
Slide 14: Coronary Artery Disease: OpSens' Growth Drivers
Coronary Artery Disease: OpSens’ Growth Drivers OptoWire Continued Market Growth of more than 10% Annually Create GPO Relationships in the U.S. to drive adoption in 1,400 Cath Labs ▪ Two agreements with major players – one of them, Vizient represents one third of all U.S. cathlabs (approx. 700) Opto
Slide 15: Aortic Valve Stenosis
Aortic Valve Stenosis OpSens Guidewire for TAVR Procedure
Slide 16: Aortic Valve Stenosis
Aortic Valve Stenosis OpSens is developing the industry’s first TRANSCATHETER AORTIC-VALVE REPLACEMENT GUIDEWIRE that can ▪ DELIVER THE VALVE and allow for ▪ CONTINUOUS PRESSURE MEASUREMENT Key attributes in optimal valve positioning. 16
Slide 17: Aortic Valve Stenosis
Aortic Valve Stenosis Left Atrium Aortic Valve Left Ventricle Right Ventricle 17 OPSens
Slide 18: Aortic Valve Stenosis – On the Forefront
Aortic Valve Stenosis – On the Forefront Mick Jagger - How to fix a rocker’s heart ▪ Underwent the procedure in 2020 ▪ Back on the stage a few weeks later Watch Radio Canada segment on Mick Jagger’s story – in French only https://ici.radio-canada.ca/tele/decouverte/site/segments/reportage/153144/jag
Slide 19: Transcatheter Aortic Valve Replacement (TAVR) Market
Aortic Valve Stenosis: Transcatheter Aortic Valve Replacement (TAVR) Market Aortic Valve Stenosis Market (US$ Billion)2 Disease Overview $8.2 Aortic valve stenosis occurs when the heart's The Aortic Valve Stenosis Market is aortic valve narrows. This narrowing prevents expected to reach US$8 billion
Slide 20: Key Factors in Evaluating TAVR Guidewire Options
Aortic Valve Stenosis: Key Factors in Evaluating TAVR Guidewire Options Pressure measurement guidewire in TAVR procedures will be key to confirm valve positioning Need: Optimal Valve Deployment World’s largest aortic valve manufacturer has no guidewire to deliver valve = significant opportunity OpSe
Slide 21: SavvyWire for TAVR
Aortic Valve Stenosis – SavvyWire for TAVR Unique Capabilities – One Wire TAVR Before implantation of the valve Yellow gap demonstrates pressure gradient After implantation of the valve Almost no gap shows improvement 21
Slide 22: SavvyWire Simultaneous First-in-man Teams
SavvyWire Simultaneous First-in-man Teams Quebec Heart and Lung Institute Montreal Heart Institute Dr. Josep Rodés-Cabau Dr. Reda Ibrahim 22
Slide 23: OpSens' Technology in a One Wire TAVR
Aortic Valve Stenosis – OpSens’ Technology in a One Wire TAVR Could Become New Standard of Care “Hemodynamic assessment derived from the OpSens OTW III wire and its new TAVR algorithm demonstrated excellent correlation with measurement derived by 2 pigtails, both before and after TAVR. Integration o
Slide 24: Product Development Timeline
Aortic Valve Stenosis: Product Development Timeline* 2021 2022 2023 N J M M J S N J M M J S N First-in-man Study completion TCT - Featured by KOLs Drs Philippe Généreux, Hemal Gada, Réda Ibrahim, Josep Rodés-Cabau, Thomas Modine Approval 1. Canada Health Canada Commercialization April 2022 2. United
Slide 25: OpSens - Partnership
OpSens - Partnership Ventricular assistance (heart pump) and other medical applications
Slide 26: Abiomed Partnership for Impella Heart Pump
Ventricular Assist Device: Abiomed Partnership for Impella® Heart Pump Abiomed Agreement Pre-2014: Strategic Partnership ▪ OpSens and Abiomed have an ongoing partnership to integrate OpSens’ sensor into Impella to provide blood pressure measurements that can be used to enhance Impella’s performance
Slide 27: Industrial Segment
Industrial Segment Innovative fiber optic measurement solutions for industrial applications Take advantage of OpSens' proprietary technology to offer solutions for TEMPERATURE, PRESSURE, STRAIN/DEFORMATION, LINEAR DISPLACEMENT, FORCE AND LOAD for a variety of industries, including AERONAUTICS - fuel
Slide 28: Industrial Segment Recent Highlights
Industrial Segment Recent Highlights OpSens Solution awarded a contract from RI Research Instruments GmbH for absolute and differential fiber optic pressure sensors for the International Experimental Thermonuclear Reactor (ITER). ITER: World's largest nuclear fusion and scientific experimentation pr
Slide 29: Financials
Financials
Slide 30: Key Accomplishments and 2022 Goals
Key Accomplishments and 2022 Goals Recent Accomplishments Near-Term Goals Original agreement with Abiomed to supply critical Signing of New GPO Agreements to Accelerate U.S. FY 2022 part within its heart pump extended to 2028 Growth in Coronary Artery Disease Market FY Signing of Two Major GPO Agree
Slide 31: Income Statement
Income Statement FY Ended August 31 $CAD FY 2020 Q1 Q2 Q3 Q4 FY 2021 Q1 2022 Q2 2022 Revenues 29 453 000 8 319 000 8 810 000 9 214 000 8 005 000 34 348 000 8 047 000 7 984 000 Sales - 17 000 19 000 19 000 61 000 116 000 49 000 116 000 Others 29 453 000 8 336 000 8 829 000 9 233 000 8 066 000 34 464
Slide 32: Balance Sheet Highlights
Balance Sheet Highlights $CAD August 31, 2021 February 28, 2022 Cash and cash equivalents 38,563,000 30,948,000 Accounts receivable, net 4,135,000 4,294,000 Inventory 6,115,000 5,662,000 Total current assets 49,782,000 42,358,000 Property, plant and equipment 2,731,000 2,452,000 Intangible assets 1,
Slide 33: Appendix
Appendix Whar OPSens
Slide 34: Guidewire performance – Example FIM
Guidewire performance – Example FIM Ventricular Valvepositioning crossing Ventricular Positioning Valve delivering Valve deployment Valve Support 34
Slide 35: Guidewire performance – Example FIM Valve crossing
Guidewire performance – Example FIM Valve Crossing crossing of the stenosed valve Valve Valvedeployment Deployment 35
Slide 36: Revenue Growth – 2016 to 2021
Revenue Growth – 2016 to 2021 Annual FY ends August 31st $40 $34.5 $35 $32.8 $3.4 $2.4 $29.5 $30 $2.5 $25 $24.0 $2.1 $20 $17.8 $1.5 $15 30,4 $31.1 $27.0 $9.6 $21.9 $10 $3.2 $16.3 $5 $6.4 $0 2016 2017 2018 2019 2020 2021 Medical Industrial Medical segment: in this segment, OpSens focuses mainly on ph
Slide 37: EBITDAO and Net Earning (loss)
EBITDAO* and Net Earning (loss) FY ends August 31st, in millions of Canadian $ EBITDAO* Net Earnings (loss) $2.0 $2 $2 $0.1 $0 $0 ($0.4) ($1.2) ($2) ($2.0) ($2) ($2.6) ($2.6) ($4) ($4) ($4.6) ($6) ($4.7) ($6.5) ($6) ($8) ($7.4) ($9.3) ($8) ($10) 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020
Slide 38: Gross Margins
Gross Margins* Annual 60% FY ends August 31st 50% 40% 30% 57.0% 53.0% 53.0% 54.0% 20% 42.0% 10% 17.0% 0% 2016 2017 2018 2019 2020 2021 Gross Margins *Comparative figures for 2016 to 2019 have not been adjusted to reflect the adoption of IFRS 16 - Lease agreements as set out in the Company’s accounti
Slide 39: Facility overview
Facility overview Quebec City, Canada 750 Boulevard du Parc-Technologique Québec, QC Canada G1P 4S3 Total employees: ~200 Total square footage: 30,000 total; 5,500 of clean room space Certifications: FDA registered, ISO 13485, MDCAF Canada Last FDA inspection date: February 6–8, 2017; no 483s 39
Slide 40: Executive Management Team
Executive Management Team President & Chief Executive Officer / Louis Laflamme Chief Financial Officer / Robin Villeneuve President, OpSens Solutions / Gaétan Duplain Mr. Louis Laflamme is President, CEO and Director of the Corporation Robin Villeneuve recently served as Chief Financial Officer for
Slide 41: Board of Directors
Board of Directors Director / Denis Harrington Mr. Denis Harrington is the owner of Denis L. Harrington Consulting, LLC, a management and strategy consulting firm he established in 2012 after 30 years of successful leadership roles in the US Army and the Medical Device Industry. Mr. Harrington prese
Slide 42: Reconciliation of EBITDAO To Net Earnings (Loss)
Reconciliation of EBITDAO To Net Earnings (Loss) FY ends August 31st $CAD 2016* 2017* 2018* 2019* 2020* 2021 Net Earnings (loss) (9,282,000) (6,537,000) (4,550,000) (1,952,000) (2,644,000) (1,150,000) Financial Expenses (income) 57,000 (7,000) (50,000) 157,000 684,000 918,000 Income taxes expense -