Slide 1: Cogstate Annual General Meeting October 2014
For personal use only Cogstate Annual General Meeting October 2014
Slide 2: Cogstate's Vision
Cogstate’s Vision For personal use only To successfully commercialise Cogstate technology by facilitating decision making in respect of cognition across all aspects of the health care sector – from research to primary care medicine. 2
Slide 3: Cogstate Business
Cogstate Business For personal use only Clinical Trials Patient Recruitment Primary Care Research 3
Slide 4: Virtuous Loop
Virtuous Loop For personal use only Cogstate’s strategy relies on leveraging the inter-relationship between:- • Clinical trials - proving drug efficacy cost effectively • Primary Care - ensuring early detection • Patient Recruitment – community screening and support for clinical trials • Research -
Slide 5: FY14 Milestones
FY14 Milestones For personal use only Clinical Trials • Rewrite of technology platform, providing greater ease of use, functionality and hardware independence • Appointment of Craig Gravina as CTO in June 2014 • Enhanced focus on Clinical Trials sales, seeking improved top and bottom line performanc
Slide 6: FY14 Milestones cont.
FY14 Milestones cont. For personal use only Primary Care • Amendment to Cognigram partnership to Merck giving Cogstate full sales and marketing rights in Canada − Merck continues to provide e-marketing support • Other big pharma have contacted us with a view to introducing a Primary Care product int
Slide 7: FY14 Milestones cont.
FY14 Milestones cont. For personal use only Patient Recruitment • Precision Recruitment product launch enabling identification of appropriate patients for clinical trials at reduced costs, which is expected to drive revenue in FY15 and beyond Business Divestment • Review of business strategy resulte
Slide 8: Clinical Trials Sales Contracts
Clinical Trials Sales Contracts For personal use only WIP + Contracts signed = Revenue 16,000,000 14,000,000 12,000,000 10,000,000 WIP @ Beginning 8,000,000 Contracts Signed CT Revenue 6,000,000 4,000,000 2,000,000 - FY2008/2009 FY2009/2010 FY2010/2011 FY2011/2012 FY2012/2013 FY2013/2014 8
Slide 9: Clinical Trials Sales Contracts
Clinical Trials Sales Contracts For personal use only WIP + Contracts signed = Revenue 16,000,000 WIP has increased by $1m each year 14,000,000 12,000,000 9,735,154 10,000,000 8,611,133 7,838,169 WIP @ Beginning 8,000,000 Contracts Signed CT Revenue 6,000,000 4,000,000 2,000,000 - FY2008/2009 FY2009
Slide 10: Clinical Trials Sales Contracts
Clinical Trials Sales Contracts For personal use only WIP + Contracts signed = Revenue 16,000,000 Sales contracts have decreased 13,980,318 14,000,000 11,486,866 12,000,000 10,000,000 8,957,967 WIP @ Beginning 8,000,000 Contracts Signed CT Revenue 6,000,000 4,000,000 2,000,000 - FY2008/2009 FY2009/2
Slide 11: Clinical Trials Sales Contracts
Clinical Trials Sales Contracts For personal use only WIP + Contracts signed = Revenue 16,000,000 Revenue has flat lined 14,000,000 11,794,227 11,769,659 11,631,614 12,000,000 10,000,000 WIP @ Beginning 8,000,000 Contracts Signed CT Revenue 6,000,000 4,000,000 2,000,000 - FY2008/2009 FY2009/2010 FY2
Slide 12: FY14 Financial Results
FY14 Financial Results For personal use only REVENUE FROM ORDINARY ACTIVITIES $12,444,351 DOWN 1.2% EBITA ($4,405,392) DOWN 196.0% NET LOSS AFTER TAX ($3,888,395) DOWN 99.0% 12
Slide 13: Segment Contribution
Segment Contribution For personal use only FY14 FY13 Movement Clinical Trials 3,356,950 6,484,815 -3,127,865 Precision Recruitment -271,250 0 -271,250 Primary Care -593,871 -535,684 -58,187 Sport -1,357,802 -1,200,126 -157,676 Unallocated -5,679,212 -6,408,844 729,632 Loss Before Income Tax -4,545,1
Slide 14: Clinical Trials Segment Result
Clinical Trials Segment Result For personal use only Given flat revenue from Clinical Trials and cost increases in the same period, there was a substantial decrease in the contribution from Clinical Trials Cost increases largely related to: • Staff increases to support bids on large trials which wer
Slide 15: Focus on Growth
Focus on Growth For personal use only • Revenue growth in the Clinical Trials business − Focus on improved margin, through sales growth and cost control, seeking improved second half performance • Revenue growth through adoption of Precision Recruitment including launch of Cognition Registry • Conti
Slide 16: Clinical Trials Sales Contracts
Clinical Trials Sales Contracts For personal use only 16,000,000.00 Full Year YTD 14,000,000.00 (16 weeks) 12,000,000.00 10,000,000.00 8,000,000.00 6,000,000.00 4,000,000.00 2,000,000.00 - FY2008/2009 FY2009/2010 FY2010/2011 FY2011/2012 FY2012/2013 FY2013/2014 FY2014/2015 16
Slide 17: Contracted Future Revenue: Clinical Trials
Contracted Future Revenue: Clinical Trials For personal use only 20.00 18.00 16.00 14.00 12.00 #039;000,000 10.00 8.00 6.00 4.00 2.00 - Dec 2012 June 2013 Dec 2013 June 2014 Oct 2014 17
Slide 18: Recognition of Contracted Future Revenue
Recognition of Contracted Future Revenue For personal use only FY15 $9.60m * FY16 $4.65m FY17 $3.06m FY18 $2.44m FY19 $1.33m FY20 $0.02m * FY15 contracted revenue includes $2.92m that has already been invoiced ** Q1 Revenue of $3.7m includes revenue from other sources outside of Clinical Trials 18
Slide 19: Clinical Trials Revenue Expectations FY15
Clinical Trials Revenue Expectations FY15 For personal use only • $9.6m contracted for FY2015 – Last year = $6.5m: 48% improvement • Additional revenue will be derived from $4.8m of awarded contracts that are currently going through the contracting process – Expected to generate additional revenue o
Slide 20: Cogstate in Primary Care
Cogstate in Primary Care For personal use only • Cognigram product launched in Canada − Amendment to Merck contract provides full sales and marketing rights to Cogstate − Merck continues to provide e-marketing support • Increased commercial interest in e-health products • Cogstate well placed for mo
Slide 21: Precision Recruitment
Precision Recruitment For personal use only • Significant market opportunity driven by difficulty finding appropriate patients for inclusion in Alzheimer’s disease studies • Significant development work undertaken over the last year • 2 sales contracts to date and additional prospects in discussion
Slide 22: Research
Research For personal use only • Development and validation of at-home, unsupervised assessment with commercial application in patient recruitment and primary care setting • Development and validation of pediatric testing making Cogstate suitable for children as young as 4 years with commercial appl
Slide 23: FY15: First Half Guidance
FY15 : First Half Guidance For personal use only • Revenue growth driven by increased clinical trial sales contracts • Operation costs in line with previous corresponding half • However these 1st half costs includes approx. $1m of costs not in the ordinary course of business: − software redevelopmen
Slide 24: FY: Second Half
FY 15 : Second Half For personal use only • Increased Clinical Trials revenue from existing contracts as well as strong pipeline • Cost control and margin improvement in the Clinical Trial business • Decreased costs resulting from the sale of Axon Sports training business and reduction in non-operat
Slide 25: Cashflow Reporting
Cashflow Reporting For personal use only Cash & Debtors 30 June 2014 $9.89m 30 September 2014 $8.60m 31 December 2014 (forecast) $7.2 - $7.7m The cash position at 30 June 2015 will be dependent upon our ability to continue to grow revenue and control costs, particularly in the Clinical Trials busine
Slide 26: For personal use only
For personal use only COGSTA’lhe ASSESS + MONITOR « IMPROVE