Slide 1: Commercialising The Felix Device: A unique device to treat male infertility
For personal use only ASX: MEM Commercialising The Felix Device: A unique device to treat male infertility Investor Presentation March 2020 Alison Coutts Executive Chairman, Memphasys Limited www.memphasys.com.au 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation is not and does not form part of any offer, invitation or respective officers, directors, employees and agents, accept no responsibility recommendation in respect of securities. Any decision to buy or sell for any information provided in this presen
Slide 3: Memphasys Value Proposition
Memphasys Value Proposition For personal use only ü Novel, proven technology for improved IVF treatment ü Addressing the significant global IVF market – anticipated to grow from ~US$13.7 billion in 2019 to ~$26.4 billion by 20261 ü First-mover advantage for unique bio separations technology ü Backed
Slide 4: Key Milestones
Key Milestones For personal use only ü Successfully raised A$4.2 million to support Key Opinion Leader (KOL) rollout with cornerstone support from major shareholders Andrew Goodall and prominent thoroughbred breeder and trainer Bob Peters in 1H CY’19 ü Awarded 3 year A$549,452 ARC Linkage Grant for
Slide 5: The Problem: IVF Technology insufficient to counter declining human fertility
The Problem: IVF Technology insufficient to counter declining human fertility For personal use only • Human IVF fertility rates in decline • IVF expanding fast but success rate remains low • Average of 2.2 IVF cycles before success but no guarantee of success • IVF increases risk of miscarriage and
Slide 6: The Problem: Male Infertility
The Problem: Male Infertility ♂ For personal use only • Male infertility is a factor in approx. 50% of infertility cases • Infertility increases with age - effects 1 in 3 men over 40 years old • Male genetic defects also increase exponentially with age • Sperm quality rather than quantity is the key
Slide 7: The Problem: Current IVF Methods
The Problem: Current IVF Methods For personal use only • No standard method for preparing sperm for IVF • Common techniques are: o Swim-up Or o Density Gradient Centrifugation (DCG) Combination • Costs between A$80 to $100 (for each technique) per cycle • Each method takes 30 minutes or more to comp
Slide 8: The Potential: Rapidly Growing Human IVF Market
The Poten?al: Rapidly Growing Human IVF Market For personal use only Fresh IVF Cycles Market Value Fresh IVF Cycles (Millions) (US $ Billions) 5 19 17.6 Fresh IVF Cycles (millions) 4 17 Market Value (US$ Billions) 3.9 3.54 16 3.28 15 3 2.96 14.6 2.68 2.46 13.3 2.24 13 2 2.02 1.85 12 11 11 1 10 9 8.7
Slide 9: A Solution: Memphasys Felix Device
A Solution: Memphasys Felix Device For personal use only • A world-first technology to separate best quality sperm with potential to increase: • The likelihood of pregnancy • Live birth • Having a healthy baby • Quick, efficient and operator independent (6 minutes, fully automated) • Uses patented i
Slide 10: How Does the Felix Device Work?
How Does the Felix Device Work? For personal use only • Gentle electric force applied to cartridge sample • Best quality (negatively charged) sperm* attracted to positive electrode • Sperm separates through polymer membranes to: o Separate by their cell size o Eliminate white cells & other debris *
Slide 11: Semen sample before and after Felix treatment
Semen sample before and after Felix treatment For personal use only www.memphasys.com.au 11
Slide 12: Developed With Global Fertility Expert Professor John Aitken
Developed With Global Fertility Expert Professor John Aitken For personal use only To view full interview go to: www.memphasys.com www.memphasys.com.au 12
Slide 13: Current Activities: KOL Assessment Program
Current Activities: KOL Assessment Program For personal use only • Key Opinion Leaders (KOLs) are international leading andrology centres and laboratories in the IVF industry • Selected for • technical and academic expertise • geographic market positioning • value to commercialisation strategy • Eac
Slide 14: Geo-location of KOLs
Geo-location of KOLs For personal use only • Currently 13 KOLs* are taking part in in-vitro assessments of the Felix device • In discussions with further high-reputation organisations in strategically important locations *Memphasys is rationalising the no. of initial KOL sites, with the Italian site
Slide 15: KOL Program Underway
KOL Program Underway For personal use only • Further devices (cartridges and consoles) for the KOL assessment program are in production with devices already received by 6 KOLs: Japan, India, Canada, USA, Iran and China. • Further devices and cartridges to be delivered to remaining KOL sites in curre
Slide 16: KOL Feedback To-Date
KOL Feedback To-Date For personal use only • Highly positive initial feedback from the KOLs • Testing delivered: ü Successfull separation of sperm from samples ü Improved average progressive motility ü High speeds, faster than swim-up/DGC ü Easy to Operate • Protocol A assessments at these and remai
Slide 17: Pathway to Market
Pathway to Market For personal use only • Commercial sales expected to occur in mid to late CY2020, following V&V 1, 2 • Ini_al commercial pathway to focus on selected countries aligned to the Company’s objec_ves to get early sales in rela_vely low regulatory markets • Countries include: o Japan o I
Slide 18: Most likely initial markets
Most likely initial markets For personal use only Country Fresh IVF cycles in Expected fresh IVF cycles by % growth rate KOL engaged in market 2018 2026 Japan 269,110 699,110 +160% ü India 169,800 489,840 +188% ü Canada 6,360 21,140 +232% ü New Zealand 5,300 11,190 +111% ü Global IVF Services Market
Slide 19: Memphasys' Business Model
Memphasys’ Business Model For personal use only • The device consists of a console and single use cartridges • The console supplies the electricity and operates the device • The cartridges contain the cell separation technology • When the device is sold commercially, IVF practitioners will require a
Slide 20: Assisted Reproduction: Strategic Focus
Assisted Reproduction: Strategic Focus For personal use only Human ART Animal ART/AI • The major focus is to • The parallel and growing focus is commercialise Felix and to launch it positioning to scale up the device for into the human IVF market. artificial insemination (AI) for selected livestock.
Slide 21: Assisted Reproduction Applications for Livestock
Assisted Reproduction Applications for Livestock For personal use only • The current human device, with minor operacng modificacons, could be used for Intra Cytoplasmic Sperm Injeccon (“ICSI”) procedures in certain livestock e.g. horses • Currently this is a niche market for only extremely high value
Slide 22: Assisted Reproduction Applications for Livestock (cont.)
Assisted Reproduction Applications for Livestock (cont.) For personal use only • To improve the efficiency of separation and cope with the much greater volume required for artificial insemination: • Memphasys is engaging with micro-fluidic bioreactor design specialists at the UNSW to do real time im
Slide 23: Equine AI: The Initial Livestock Focus
Equine AI: The Initial Livestock Focus For personal use only Rationale for choosing equine AI as the initial focus: • The current Felix human device, with minor operating modifications, has been proven to work on small quantities of equine semen • Although AI is illegal in thoroughbreds, there is a
Slide 24: Corporate Snapshot
Corporate Snapshot For personal use only ASX Code MEM MEM Share Price for last 12 Months Share price (as at 3/3/2020) $0.06 Shares on issue 753.97 million Market capitalisation $45.24 million Cash & Cash Equivalents (as at 31/12/2019) $3.8 million Ownership structure – substantial Peters Investments
Slide 25: Appendices: Board of Directors
Appendices: Board of Directors For personal use only Alison Cou<s – Execu=ve Chairman Marjan Mikel – Non-Executive Director Former Chair of CSIRO Health Sector Advisory Council Founded Healthy Sleep Solutions, which attracted Resmed (NYSE:RMD) as JV partner Chemical Engineering degree and MBA Co-fou
Slide 26: Investment Highlights
Investment Highlights For personal use only ü Potential to counteract male infertility and disrupt IVF industry ü International commercial product roll out from mid-late CY2020 ü Significant growing market - predicted to be valued at ~$26.4 billion by 2026 ü Backed by major industry partners ü Execu
Slide 27: Appendices: Intellectual Property
Appendices: Intellectual Property For personal use only Memphasys and/or Uni Newcastle hold patents relating to: • Specific cell separation technologies • Specific sperm separation technologies1 Patents pending: • Electrophoresis apparatus design for sperm fractionation • Hydrogel membranes 1. Exclu
Slide 28: Thank you
For personal use only Thank you Alison Coutts Executive Chairman, Memphasys Ltd 30-32 Richmond Rd, Homebush NSW 2140 Australia Phone: +612 8415 7300 www.memphasys.com.au 28