Impedimed Limited · ASX:IPD
Impedimed — Investor Presentation (May 2023)
45 slides from Impedimed's investor presentation, May 19, 2023
Slide 1: Capital Raising Investor Presentation
Capital Raising Investor Presentation May 2023 ASX: IPD Approved for release by the Board of ImpediMed Limited Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. 1 ©2023 ImpediMed Limited.
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Important Notice and Disclaimer This document is dated 19 May 2023 and has been prepared and authorised by ImpediMed Limited (ABN 65 089 705 144) (“ImpediMed”) in connection with ImpediMed’s proposed capital raising (the “Capital Raise”), comprising: • a placement of
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer Not an offer This document is for information purposes only and is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or any other law (and will not be lodged with the Australian Securities and Investmen
Slide 4: Important Notice and Disclaimer
Important Notice and Disclaimer Forward Looking Statements Certain statements in this presentation may constitute forward-looking statements or statements about future matters that are based on management’s current expectations and beliefs. Forward-looking statements can generally be identified by t
Slide 5: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer Neither Canaccord Genuity Limited, Wilsons Corporate Finance Limited nor Jarden Australia Pty Ltd (together, the “Joint Lead Managers”), nor any of their or ImpediMed’s respective advisers nor any of their respective affiliates or related bodies corporate,
Slide 6: Table of Contents
Table of Contents Section Page number Executive Summary 7 Market Opportunity 8 Offer Details 18 Company Overview 23 Key Risks 32 Foreign Selling Restrictions 44 Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2023 ImpediMed Limited. 6
Slide 7: Executive Summary
Executive Summary • NCCN Guidelines® updated 24 March 2023 to recommend regular screening for Lymphoedema, including with bioimpedance spectroscopy (BIS). NCCN Guidelines® inclusion • Inclusion of BIS in the NCCN Guidelines® assists in establishing BIS as a standard of care and accelerates adoption
Slide 8: Market Opportunity
Market Opportunity Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2023 ImpediMed Limited. 8
Slide 9: Key Updates
MARKET OPPORTUNITY Key Updates Highly Achieving Expanded Transformative Significant Total Addressable Moment for Momentum with Market (TAM) Company Private Payors NCCN Guidelines® Nearly 50% of Health Plans More than doubling of TAM updated to recommend BIS expected to publish in Oncology related to
Slide 10: NCCN Guidelines Updated to Recommend BIS
MARKET OPPORTUNITY NCCN Guidelines® Updated to Recommend BIS Recommends Specifically All At-Risk Cancer Uniform Helps Establish New Regular Screening Names BIS Survivors Consensus Standard of Care NCCN Guidelines® Names BIS as an The NCCN Guidelines® The recommendations The inclusion of BIS in updat
Slide 11: Covering All Patients At Risk of Limb Lymphoedema
MARKET OPPORTUNITY Covering All Patients At Risk of Limb Lymphoedema Annual cancer diagnoses in the US by cancer type1 • Addressable market in Oncology significantly expanded. Breast 290,560 • There are 1.9 million new cancer diagnoses in the US each year1. Colorectal 160,470 • The Breast Cancer Rel
Slide 12: $2B+ Addressable Market for Lymphoedema in U.S. Alone
MARKET OPPORTUNITY $2B+ Addressable Market for Annual Cost of Lymphoedema in U.S. Alone Lymphoedema2 Treatment Market $10B+ Previous Serviceable Market1 • Prior to NCCN Guidelines® $600M+ inclusion Total Addressable Market1 • Breast Cancer Patients •$1B+ Total Addressable Market1 • All At-Risk Cance
Slide 13: Substantial Growth Opportunity with Reimbursement
MARKET OPPORTUNITY Substantial Growth Opportunity with Reimbursement Private Payor reimbursement strategy unlocks access to 10,000+ Sites of Service^^ Current U.S. SOZO Footprint* accessible under existing agreements NCCN INSTITUTIONS^ • 22 of 33 NCCN Customers ADDRESSABLE MARKET TOP 25 INTEGRATED D
Slide 14: World Renowned Customer Base
MARKET OPPORTUNITY World Renowned Customer Base 1,000+ SOZO Systems deployed globally in Core and Clinical Businesses1 100+ SOZOs in Europe2 ~500 SOZOs in U.S. 400+ SOZOs in Australia and Asia-Pacific region 1. The Core Business relates primarily to the Group’s Oncology business. The Clinical Busine
Slide 15: U.S. Private Payor Landscape
MARKET OPPORTUNITY U.S. Private Payor Landscape Complex network of regional and national private health insurers • Payors in the health care industry are organisations which set service rates, collect payments, process claims, and pay provider claims (such as private health plans, Medicare, and Medi
Slide 16: Reimbursement Strategy and Updates
MARKET OPPORTUNITY Reimbursement Strategy and Updates First Regional Payor Expecting First State Immediate Response Policy Publication with Critical Mass from Private Payors Written confirmation from Regional Payor that policy will be published to Expecting critical mass Nearly 50% of Private Payors
Slide 17: Immediate Impact of NCCN Guidelines on Reimbursement Strategy
MARKET OPPORTUNITY Immediate Impact of NCCN Guidelines® on Reimbursement Strategy Further, material progress since April 2023 update: Continued • Initially reported 3 to 18 months for Private Payors to acceleration of 3 to 12 review their current medical policies. • Now expecting 3 to 12 months for
Slide 18: Offer Details
Offer Details Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2023 ImpediMed Limited. 18
Slide 19: Offer overview
OFFER DETAILS Offer overview • Institutional Placement to raise approximately A$20 million through the issue of approximately 153.8 million shares (representing ~8.6% of shares currently on issue). Offer size and • SPP to eligible shareholders in Australia and New Zealand, under which eligible share
Slide 20: Use of Funds
OFFER DETAILS Use of Funds Proceeds used to accelerate the Private Payor opportunity post inclusion in NCCN Guidelines® and enable the scaled roll-out of SOZO systems in the U.S. Use of funds1 2% - 4% 5% - 10% 10% - 30% Targeted Market Targeted Market Targeted Market TAM Category A$m Share^ based on
Slide 21: Further Details on Use of Funds
OFFER DETAILS Further Details on Use of Funds1 Market Access and Reimbursement + Medical Affairs and Customer Success Sales and Marketing Software Development Manufacturing • Reimbursement Field Support • Chief Commercial Officer and • Chief Medical Officer to build • Critical investment in team for
Slide 22: Offer timetable
OFFER DETAILS Offer timetable Event Date Trading halt Thursday, 18 May 2023 Institutional Placement bookbuild conducted Thursday, 18 May 2023 Record date for SPP 7:00pm (Sydney time) on Thursday, 18 May 2023 Trading halt lifted, announce Completion of Institutional Placement Friday, 19 May 2023 Sett
Slide 23: Company Overview
Company Overview Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2023 ImpediMed Limited. 23
Slide 24: Corporate Overview
COMPANY OVERVIEW Corporate Overview A$277M Share Register ASX Listed Institutional: 53% Market Cap IPD.AX Private: 44% as at 17 May 2023 October 2007 Board/Management: 3% A$21.4M A$45.0M^ Debt: Nil Cash on Hand Proforma Cash to No borrowings as at 31 March 2023 fund growth from banks ^ Estimated bas
Slide 25: High Margin SaaS Model Poised for Compounding Growth
COMPANY OVERVIEW High Margin SaaS Model Poised for Compounding Growth SOZO Revenue (Excluding Legacy) $2,700,000 $9.2m 90%+ ARR^ GROSS MARGINS $2,025,000 in AUD on ARR and SaaS Revenue 90%+ Gross Margins on SaaS Revenue $1,350,000 28% ↑ 33% ↑ CORE SaaS BUSINESS In ARR YoY^ $675,000 GROWTH YoY^ (+15%
Slide 26: Strong Underlying Fundamentals
COMPANY OVERVIEW Strong Underlying Fundamentals • 33% Average Monthly License Fee increase across U.S. renewal contracts • Four (4) consecutive quarters with 30%+ increase in renewal license fees. • Achieved prior to the NCCN Guidelines® inclusion and Private Payors. • With the NCCN Guidelines® incl
Slide 27: Connected Digital Health Platform
COMPANY OVERVIEW Connected Digital Health Platform SOZO Platform SOZO • Less than 30 Second Test • Medical Assistant • Connected Device • Cloud-based SaaS* Pricing Model • On Device, Online or via EHR** • Multiple Applications Scalable Add and move test locations without any additional software setu
Slide 28: ImpediMed's Technology
COMPANY OVERVIEW ImpediMed’s Technology Using Bioimpedance Spectroscopy (BIS), SOZO non-invasively measures, monitors and manages fluid status and tissue composition Subjective and Time Consuming BIS is Objective and Fast Imaging Low Frequency Current passes around cells Fluid Implantables 256 frequ
Slide 29: SOZO Digital Health Platform
COMPANY OVERVIEW SOZO Digital Health Platform Lymphoedema FDA Clearance, CE Mark, NCCN Guidelines® Heart Failure FDA Clearance, CE Mark End Stage Renal Disease^ CE Mark Protein Calorie Malnutrition FDA Clearance, CE Mark Body Composition FDA Clearance, CE Mark Bone Density^^ Venus Insufficiency^^^ ^
Slide 30: SOZO is the Only FDA Cleared BIS Device for Lymphoedema
COMPANY OVERVIEW SOZO is the Only FDA Cleared BIS Device for Lymphoedema^ Tissue Dielectric Bioimpedance Tape Measure / Arm Constant Spectroscopy Water Displacement Perometry Volume MoistureMeter D (BIS L-Dex) LymphScanner SOZO, U400 Specified for Screening in NCCN Guidelines® No No No No Yes Detect
Slide 31: Business Significantly De-Risked in Oncology
COMPANY OVERVIEW Business Significantly De-Risked in Oncology Key Accomplishments to Date Key Initiatives Underway ✓ Largest Level I randomised controlled trial for detection • Evidence generation for additional cancer types of subclinical lymphoedema ✓ NCCN Guidelines® inclusion for all cancer surv
Slide 32: Key Risks
Key Risks Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2023 ImpediMed Limited. 32
Slide 33: Risk factors
KEY RISKS Risk factors This section identifies what the Directors regard as major risks, which may materially and adversely affect the future operating and financial position of ImpediMed Limited (ImpediMed or Company) and its subsidiaries (together, the Group) and the value of shares in the capital
Slide 34: Risk factors (cont.)
KEY RISKS Risk factors (cont.) The commercial success of ImpediMed’s products is substantially dependent on achieving estimated payment levels to medical providers to support pricing strategies for L-Dex and additional indications and uses for SOZO. A Category I CPT® code for L-Dex has been in effec
Slide 35: Risk factors (cont.)
KEY RISKS Risk factors (cont.) ImpediMed’s ability to successfully transform into a high growth medical technology company relies on being able to retain and attract specialised talents, including skilled information technology personnel and executive talent. ImpediMed faces intense competition for
Slide 36: Risk factors (cont.)
KEY RISKS Risk factors (cont.) The use of information technology is critical to ImpediMed’s ability to deliver its products and services to customers. Software, data and 1.8 cloud management ImpediMed, or its contracted software developers or data hosts, may fail to develop and maintain software pro
Slide 37: Risk factors (cont.)
KEY RISKS Risk factors (cont.) The Company is relying on additional data from clinical trials and real-world data utilising SOZO to drive the future commercial opportunities and market adoption of SOZO in Heart Failure (HF), Renal Failure, Protein Calorie Malnutrition (PCM) and other indications. Al
Slide 38: Risk factors (cont.)
KEY RISKS Risk factors (cont.) Although ImpediMed’s current products have received key regulatory clearances, ImpediMed may still face developmental and ongoing regulatory compliance difficulties, or challenges in respect of future regulatory clearances. Regulatory agencies subject a marketed device
Slide 39: Risk factors (cont.)
KEY RISKS Risk factors (cont.) ImpediMed faces product liability exposure with respect to its products. This exposure is likely to increase as commercial sales increase. ImpediMed conducts extensive safety and penetration testing of new and current technology and regularly reviews customer complaint
Slide 40: Risk factors (cont.)
KEY RISKS Risk factors (cont.) Third parties may own or control patents or patent applications that ImpediMed may be required to license in order to commercialise its product, which ImpediMed may infringe, or that could result in litigation that would be costly and time consuming. As a result of int
Slide 41: Risk factors (cont.)
KEY RISKS Risk factors (cont.) ImpediMed may require substantial additional funds which may be dilutive or that may not be available to ImpediMed on favourable terms, or at all. If ImpediMed is unable to obtain additional funds when required, ImpediMed may be forced to: • delay; • reduce the scope o
Slide 42: Risk factors (cont.)
KEY RISKS Risk factors (cont.) 2. General Risks There are risks associated with any share market investment. Some of these risks are listed below. ImpediMed’s financial statements are presented in Australian dollars. A substantial portion of current sales revenue and costs are denominated in currenc
Slide 43: Risk factors (cont.)
KEY RISKS Risk factors (cont.) 3. Other Other risks include those normally found in conducting business, including litigation resulting from breach of agreements or in relation to employees or any other cause. The above list of risk factors should not be taken as exhaustive of the risks faced by Imp
Slide 44: Foreign Selling Restrictions
Foreign Selling Restrictions Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2023 ImpediMed Limited. 44
Slide 45: International Offer Restrictions
FOREIGN SELLING RESTRICTIONS International Offer Restrictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, i