Slide 1: Transforming bioprocessing at the point of need – Year end results 2017
Transforming bioprocessing at the point of need Year end results 2017 Chairman: Peter Grant CEO: Glenn Tracey FD: Bevan Metcalf March 2018 1
Slide 2: Forward looking statements
Forward looking statements This presentation contains forward-looking statements regarding the Company's plans, expectations, estimates and beliefs. Forward-looking statements are typically identified by words such as "believes," "anticipates," "intends," "will," "may" and other similar expressions.
Slide 3: The Board
The Board Peter Grant – Non Executive Chairman (appointed January 2018) 40 years experience, half at listed company board level, covering both London main market (up to FTSE 250) and AIM, including CEO of Skyepharma PLC, CFO of Skyepharma PLC, Chief Financial Officer at WorldPay Group plc, Group Chi
Slide 4: Chairman’s statement
Chairman’s statement • Clear vision & strategy with experienced management • Targeting high growth markets in biopharma • Strong collaboration with foremost company in scientific instrumentation for bioprocessing • Partnership approach to creating OEM pipeline • Strong IP portfolio, commercialised f
Slide 5: About Microsaic Systems
About Microsaic Systems • Founded as a spin-out from Imperial College • Bench-top Mass Spectrometry (MS) products based on patented chip technology (>60 patents) • 4000 MiD® launched 2013, 120 instruments in the field in small molecule detection • 4500 MiD® launching H1 2018 • Key target is high gro
Slide 6: Route to market
Route to market • Partner with established global brands in preparative and purification science with expertise in Pharma and Biopharma • OEM model: Co-development of unique integrated solutions combining Microsaic’s bench-top mass spectrometers with partner products for specific applications • Leve
Slide 7: Previous focus: compact MS in small molecule detection
Previous focus: compact MS in small molecule detection The need we satisfy How we do it What we do We help Pharma companies We partner with global A technology solution realise efficiency goals separation and purification provider delivering (quicker/cheaper) in companies (OEMs) to applications thou
Slide 8: Two “future market” drivers for strategic change
Two “future market” drivers for strategic change Shift in therapeutic focus Separation, purification and from small to larger identification of larger molecules molecules during drug development and (peptides, antibodies, proteins) scale-up manufacturing Improving biopharma Powerful methods of analy
Slide 9: Strategic choice: why bioprocessing?
Strategic choice: why bioprocessing? Bioprocessing uses biological Industry needs machines (e.g. cells) to make drugs • Pressure on biopharma industry to make (biologics) less expensive, safer biologic drugs and ensure reliable and sufficient capacity Biologic drugs are top-selling products Costs ~$
Slide 10: Key Achievements in 2017
Key Achievements in 2017 • Successfully completion of technical feasibility phase, and signing of a technical integration phase with foremost player • Collaborations with UK and US leaders in bioprocessing technology, to inform further OEM discussions, and wider application opportunities • Product d
Slide 11: Opportunities in the traditional market
Opportunities in the traditional market • 4500 MiD® launches in H1 2018, supported by a OEM product launch during H2 2018 • Increased ability to measure small molecules, and now metabolites, peptides and small proteins • Pipeline of new OEM and distributor discussions progressing, in US, EU and Asia
Slide 12: Multiple product possibilities in bioprocessing
Multiple product possibilities in bioprocessing Our points of entry 12
Slide 13: Opportunities in bioprocessing
Opportunities in bioprocessing • Current phase progress with global partner, target completion H2 18 • Working with two established institutions to generate data to seek further collaborations with bioprocessing OEMs Our value proposition to the OEM: • Flexible configuration & multi-application • Id
Slide 14: Product Development 2018
Product Development 2018 • 4500 MiD® launch 2018, extended mass range our reach into peptides and small proteins • Advanced prototype of completely tool-less operation, H1 2018 • Bioprocessing proof of concept product, H2 2018 14
Slide 15: Future product development
Future product development • Extended product portfolio • Widened mass range to detect whole biologics • Greater sensitivity to enable wider application for bioprocessing • Software and hardware ease of use, to reduce planned product maintenance and increase bioprocessing efficiency • Data driven an
Slide 16: Financials - Revenues
Financials - Revenues H1 H2 £000s 2017 2016 2017 2017 Revenues disappointing; Units 2 5 7 27 difficult trading conditions in small molecule markets - highly competitive; Products 69 160 229 724 hence the focus on large molecule opportunities Consumables 44 53 97 88 Revenues picked up in H2. Other 16
Slide 17: Financials – Comprehensive Income
Financials – Comprehensive Income £000s 2017 2016 Revenue falls by 60% due to difficult trading conditions in Revenue 342 851 small molecule detection; Cost of sales (221) (549) focus on biopharma strategy Gross Profit 121 302 Gross margin % 35.4% 35.5% Income of £47k from one of the foremost player
Slide 18: Financials – Financial Position
Financials – Financial Position £000s 2017 2016 Non-current assets 227 282 Cash in line with projections at 2016 Cash 3,182 5,729 fundraising Inventories 483 694 Inventories reduced; Other current assets 481 426 provision for obsolete Current assets 4,146 6,849 stock with launch of 4500 MiD® in 2018
Slide 19: Financials – Cash Flow
Financials – Cash Flow £000s 2017 2016 Net cash used in operating activities (2,451) (2,796) Net cash used in investing activities (96) (143) Cost reduction programme in Q1 led to £0.4M reduction in Net cash from financing activities - 5,060 cash used in operating and Net (decrease)/increase in cash
Slide 20: Outlook
Outlook • The Board expects modest growth from current-market sales in 2018 • Microsaic is working with a number of OEMs in small molecule detection which may convert into collaboration agreements, and then onto commercialisation during 2018 and 2019. • Product development in bioprocessing is our ke
Slide 21: Summary
Summary • Clear vision & strategy with experienced management • Targeting high growth markets in biopharma • Good progress to date with product development and technical integration phase with one of the foremost players in the global market for scientific instrumentation • The Board remains confide