Ekf Diagnostics Holdings Plc · LSE:EKF
Ekf Diagnostics — H1 2014 Earnings Presentation
32 slides from Ekf Diagnostics's earnings presentation, Sep 15, 2014
Slide 1: Half Yearly Report: Six months ended 30th June 2014
Title SCIENCE MADE SIMPLE sub*tle HALF YEARLY REPORT Six months ended 30th June 2014 Julian Baines, Chief Execu*ve Officer Paul Foulger, Finance Director 15th September 2014
Slide 2: Agenda
AGENDA Slide 4 Molecular Diagnos*cs strategy: Update 6 Current trading and outlook 7 H1 highlights 8 -‐ 14 Performance by business unit 15 -‐ 18 Financial reports 19 Summary 21 -‐ 32 Appendices 2
Slide 3: Key Issues to Address
KEY ISSUES TO ADDRESS The business strategy for EKF Molecular Diagnos*cs and Selah Genomics How EKF Diagnos*cs will meet its full year market expecta*ons 3
Slide 4: Molecular Dx Strategy
MOLECULAR DX STRATEGY AcquisiJon raJonale: • All pharma companies are required by the FDA to explore the iden*fica*on of novel biomarkers to allow more accurate use of new drugs • Leverage Selah and PointMan products to support Phase 1 drug trials: – Allows drugs to be tested on targeted pa*ent popul
Slide 5: Product Pipeline
PRODUCT PIPELINE PalmeTo GBA (CMS / Assay Development ValidaJon Algorithm/ReporJng Public Payer Private Payer Medicare) Tech. Assessment N/A -‐ exisJng codes already established for these assays. Complete Complete Complete. Currently only reimbursed for cardiovascular pa*ents being considered for t
Slide 6: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK Point-‐of-‐care: – Improved automa*on of Quo-‐Test and Quo-‐Lab will allow higher volume of produc*on and increase margins – Volume deals from key OEM partners in Eastern Europe and Asia for A1c and Hb analysers – Large Biosen analyser deal in China – Half year of rev
Slide 7: H1 2014 Highlights
H1 2014 HIGHLIGHTS ConJnued revenue growth: £16.77m vs. H1 2013 £14.89m (+13%) • Underlying organic growth: £15.40m vs. £14.89m (+3.4%) • Less: Adverse currency effect in 2014 of (£1.08m) • Add: Acquisi*ons in 2014 of £2.44m ConJnued AEBITDA growth: £2.22m vs. H1 2013 £2.12m (+5%) • Underlying organi
Slide 8: Organisational Structure
ORGANISATIONAL STRUCTURE Central Laboratory
Slide 9: Business Unit Summary
BUSINESS UNIT SUMMARY • H1 2014 rev: £11.4m • H1 2014 rev: £4.1m • H1 2014 rev: £1.3m • +16% v. H1 2013 • -‐18% v. H1 2013 • Revenues generated from • Steady growth as a result • Mature market just 10 weeks of trading of increasingly large base • Dispropor*onate impact • Porqolio of tests in of ins
Slide 10: Point-of-Care: Haematology
POINT-‐OF-‐CARE Haematology • Revenues + £1.72m (+51%) H1 2014 v H1 2013 EKF range • Acquisi*ons have consolidated market presence DiaSpect T DiaSpect Tm • Commercial integra*on of DiaSpect and STI complete HemataSTAT II • Growing installed base delivering incremental growth in consumables Hemo Co
Slide 11: Point-of-Care: Diabetes
POINT-‐OF-‐CARE Diabetes • Technology transfer of Quo-‐Test and Quo-‐Lab from Walton-‐on-‐Thames, UK to Barleben, Germany completed: EKF range Biosen • Automated consumable produc*on for both products Quo-‐Lab • Centralised warehousing and shipping Quo-‐Test • Centralised Customer Service SS
Slide 12: Point-of-Care: Lactate
POINT-‐OF-‐CARE Lactate (Sport/Women’s Health/Sepsis) • New applica*ons for lactate outside of sports medicine: EKF range • Obstetrics Lactate Scout+ • Sepsis SensPoint Obstetrics • European studies undertaken on three applica*ons within obstetrics (birth medicine) • New market opportunity with co
Slide 13: Central Laboratory: Clinical Chemistry and Enzymes
CENTRAL LABORATORY Clinical chemistry and enzymes • Total central laboratory sales H1 2014 v H1 2013 sales -‐19% EKF range • Timing issues: Clinical chemistry • Enzyme orders from Roche Contract fermenta*on • Asian distributors Enzymes • Sustained growth of β-‐HB LiquiColor reagent: +6% YoY Liver
Slide 14: Central Laboratory: Kidney Biomarkers
CENTRAL LABORATORY Kidney biomarkers sTNFR1 and 2 EKF range • Increased profile and awareness of sTNFR1/2: Kidney and liver • Pres*gious award and key note address by lead scien*st at American Diabetes biomarkers Associa*on annual mee*ng in June 2014 sTNFR1 and 2 • Mul*ple papers published in key jou
Slide 15: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT H1 2014 H1 2013 +/-‐ FY 2013 £’000 £’000 £’000 £’000 Revenue 16,766 14,887 1,879 31,804 Gross profit 7,912 7,648 264 16,345 GP % 47.2% 51.4% (4.2%) 51.4% Net admin. costs (5,864) (5,645) (219) (12,016) Other income 168 121 47 495 AEBITDA 2,216 2,124 92 4,824 Share based
Slide 16: Balance Sheet: Assets
BALANCE SHEET: ASSETS H1 2014 H1 2013 +/-‐ FY 2013 Selected items £’000 £’000 £’000 £’000 Non-‐current assets Property, plant, equipment 10,137 9,971 166 9,785 Intangible assets 96,258 36,605 59,653 34,725 Investments 1,152 250 902 250 Deferred tax assets 862 977 (115) 903 Total non-‐current asse
Slide 17: Balance Sheet: Equity & Liabilities
BALANCE SHEET: EQUITY & LIABILITIES H1 2014 H1 2013 +/-‐ 2013 Selected items £’000 £’000 £’000 £’000 Equity aTributable Total equity 86,727 41,900 44,827 40,922 Non-‐current Borrowings 2,235 2,234 1 2,108 liabiliJes Deferred considera*ons 16,803 5,237 11,566 5,471 Deferred tax liabili*es 15,849 3,
Slide 18: Cashflow
CASHFLOW H1 2014 H1 2013 +/-‐ 2013 £’000 £’000 £’000 £’000 Cash at beginning of period 2,551 4,331 (1,780) 4,331 From opera*ng ac*vi*es (3,317) 1,007 (4,324) 2,007 From inves*ng ac*vi*es (14,587) (793) (13,794) (2,216) From financing ac*vi*es 26,377 (1,535) 27,912 (1,560) Net increase/(decrease) in
Slide 19: And Finally
AND FINALLY Acquired July 2010 October 2010 June 2011 Revenue growth 45% 775% 64% since acquisi*on 19
Slide 20: Thank You
yr St Gp j= , oe SCIENCE MADE SIMPLE DIAGNOSTICS THANK YOU 20
Slide 21: Appendix: Product Portfolio
APPENDIX Product pormolio 21 21
Slide 22: Sales of Analysers
Units sold SALES OF ANALYSERS Hemo Control 27,004 2008 – June 2014 STAT-‐Site M Hgb 16,421 DiaSpect T/Tm 10,429 Lactate Scout+ 6,535 Biosen C/S-‐Line 2,563 Quo-‐Test A1c 2,467 HemataSTAT II 2,348 Quo-‐Lab A1c 1,524 UltraCrit 1,401 Hemo Control STAT-‐Site M Hgb DiaSpect T/Tm Total 70,692 Lactate
Slide 23: Diabetes
Diabetes Quo-‐Lab Quo-‐Test Biosen A1c Biosen Glucose and Parameter HbA1c HbA1c HbA1c and glucose lactate 4 minutes (A1c) Time to results 4 minutes 4 minutes 20-‐25 seconds 30 seconds (glucose) <3% CV (A1c) Accuracy < 3% CV < 3% CV < 1.5% CV <1.5% CV (glucose) Sample size 4 μl 4 μl 20 μl 20 μl Me
Slide 24: Anaemia
Anaemia SSM Hgb DiaSpect Tm/T UltraCrit Hemo Control Parameter Hemoglobin Hemoglobin Hematocrit Hemoglobin Time to results 30 seconds 1 – 2 seconds 30 seconds 20 seconds Imprecision -‐ -‐ < 0.8% CV < 2% CV Sample size 15 μl 10 μl 40 μl 8 μl Memory n/a None -‐ 4,000 results Connec*vity n/a 2.0 Blu
Slide 25: Lactate
Lactate Lactate Scout+ SensPoint Biosen Glucose Parameter Lactate Lactate and lactate Time to results 10 seconds 10 seconds 20-‐25 seconds < 3.4 mmol/L Accuracy < 3% CV < 1.5% CV +/-‐ 0.2 mmol/L Sample size 0.2 μl 0.2 μl 20 μl Memory 250 results 5,000 results 1,000 results Connec*vity PC / Bluetoo
Slide 26: Beta-Hydroxybutyrate
BETA-‐HYDROXYBUTYRATE Clinical chemistry • Beta-‐Hydroxybutyrate (β-‐HB) is an enzyma*c assay used on clinical chemistry analysers • The test quan*fiably detects the presence of the ketones in pa*ents with suspected Diabe*c Ketoacidosis (DKA) • β-‐HB is the primary ketone produced by the body dur
Slide 27: Centrifuge Range
CENTRIFUGE RANGE • Creamatocrit™ • Measures the creamatocrit of mothers’ milk and es*mates the calories per ounce • Micro12™ • The Micro12 centrifuge is used for small volume separa*on • PlasmaPrep-‐12™ • High-‐speed bench top centrifuge designed to rapidly separate blood in original evacuated col
Slide 28: Enzyme Manufacturing
ENZYME MANUFACTURING EKF Life Sciences • Based in Elkhart, Indiana • Cer*fied ISO 13485: 2003 facility • Relaunched as EKF Life Sciences 1st July 2014 Manufacturing: • Bulk manufacture of enzymes used in clinical reagents • Global distribu*on to a blue-‐chip roster of customers Contract manufacturin
Slide 29: Novel Renal Biomarkers sTNFR1 and 2
NOVEL RENAL BIOMARKERS sTNFR1 and 2 • Growing interest in applica*ons of sTNFR1 & 2: • Third party studies from France and Finland accepted for publica*on Q1 2014 • Qualified interest from pharma businesses for use as a Companion Diagnos*cs tool • Tes*ng samples from pharma companies scheduled for Q3
Slide 30: Products: PointMan
PRODUCTS: POINTMAN • Becer iden*fy pa*ents diagnosed with metasta*c melanoma BRAF who are suitable for treatment with Zelboraf • Help predict which pa*ents diagnosed with colorectal cancer KRAS will not respond to novel therapies such as Erbitux and Vec*bix • Efficiently iden*fy which pa*ents undergoi
Slide 31: Services: Selah Genomics Inc.
SERVICES: SELAH GENOMICS INC. Company overview • Based in Greenville, South Carolina, USA • CLIA cer*fied molecular ‘test-‐as-‐a-‐service’ laboratory targe*ng three dis*nct customer segments: Doctors, pharmaceu*cal companies and healthcare providers • Growing porqolio of molecular assays to suppor
Slide 32: yr St Gp
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