Slide 1: STAAR Surgical Company
STAAR Surgical Company Nasdaq: STAA David Bailey Chief Executive Officer STAAR SURGICAL
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS All statements in this presentation that are not statements of historical fact are forward-looking statements, including any projections of earnings, revenue, cash or other financial items, any statements of the plans, strategies, and objectives of management for future op
Slide 3: STAAR Surgical Is
STAAR SURGICAL IS............ A leader in the development, manufacture and marketing of minimally invasive ophthalmic products employing proprietary technologies that improve patient outcomes.
Slide 4: Investment Considerations
Investment Considerations Large and growing addressable market - High Growth, High Margin Leadership in phakic implants - the Visian Implantable Collamer Lens(tm) Opportunity to rebuild share in the Cataract market Poised for Growth . Experienced Management team . Unique and Innovative Products . Ad
Slide 5: Long-Term Strategic Goals
Long-Term Strategic Goals Sales Growth- 40% of revenues from Refractive Gross Margin 70%+ Continued investment in R&D and product pipeline Continued new product approvals
Slide 6: Visian ICL - The Complement to Lasik in the Refractive Practice
Visian ICL(tm) - The Complement to Lasik in the Refractive Practice or The Next Paradigm Shift in Refractive Surgery ?
Slide 7: Cataract / Refractive Surgery
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Slide 8: Visian ICL
Visian(tm) ICL(tm)
Slide 9: Visian ICL Range and Indications
Myopia from -3.0D to -20.0D LASIK now used up to - 12D LASIK stretched beyond -7/8D 21 to 45 years of age Each diopter doubles the market Visian - FDA Approved
Slide 10: Visian Advantages
Visian Advantages "Correct the Vision NOT the eye"; Architecture and Anatomy of the Cornea is completely unchanged with the ICL. Additive vs Subtractive - "Removable" Manageable complication profile - With a LASIK complication an effective solution is not always easily available State of the art sur
Slide 11: Current Market Estimate
Current Market Estimate 1.5 billion myopes worldwide 3.0 million LASIK procedures/year WW 1.4 million US 0.8 million China 0.8 million ROW
Slide 12: Market Potential
Market Potential "Limits of LASIK" 1 in 5 patients are rejected for LASIK = 600K patient opportunity 10 to 30% of patients undergoing LASIK have a suspicious Cornea - "never touch a suspicious cornea" - - 300,000 to 900,000 eyes conversion to lenses from LASIK. Dry eye (75% of LASIK patients have dr
Slide 13: Refractive Market Landscape
Refractive Market Landscape Expect continued growth driven by new approvals China ICL/TICL - 06 Diopter penetration - NOT limited to high diopters OR high sphere ; -10D and below unit growth double average For TICL we sell as many at -3D cylinder and below as we do above -3D cylinder US - 33% implan
Slide 14: International ICL/TICL Opportunity
International ICL/TICL Opportunity Current market penetration as % of Lasik ranges from 0.1% to 3.8% Our two strongest markets in terms of sales are Spain (1.9%) and Korea (1.5%) At a 4% penetration in our top four markets, sales would increase by $8M If all current International markets reached 3.8
Slide 15: US Visian Launch Update
US Visian Launch Update 2006 Goal: 500 Proctored Doctors 105+ surgeons proctored to date, strict surgical protocol STAARVision Website to calculate and monitor outcomes - www.STAARVision.com Five eye proctoring requirement focused on quality outcomes, 20-eye follow-up requirement - input into STAARv
Slide 16: Early Observations
Early Observations "The procedure took me five minutes and the patient was 20/15 in the first eye done and 20/25 in the second eye done, both at the three-hour check" We've done nine eyes so far, six are over the one week post-operative date. Vision is 20/20 in three eyes, 20/25 in one eye and 20/30
Slide 17: Patient/Doctor Testimony
Patient/ Doctor Testimony " It's amazing, I can finally see" - 43 year old worn glasses since second grade "I've worn glasses for 54 Years - I'm very excited" - 58 year old Doctor - six procedures and the results "stunning. Everyone read 20/20 or better. It was so thrilling to have patients experien
Slide 18: Detroit Free Press news article from March 7, 2006
Detroit Free Press news article from March 7, 2006
Slide 19: Next Steps
Next Steps Focus on Quality not Quantity with reorder rates the key - 90% for surgeons proctored in Feb reordered Roll out of practice marketing materials - ongoing TICL file submitted for approval April 2006 - incredible outcomes, expands the market
Slide 20: STAAR Website
STAAR Website Available : Dr. Erik Mertens, Belgium. Live surgery at ESCRS meeting September 2005. Bilateral 13 minutes unedited Updated list of US proctored surgeons KNX radio Interview DB + Dr Paul Dougherty
Slide 21: US Toric ICL Clinical Trial
US Toric ICL(tm) Clinical Trial
Slide 22: Astigmatism Correction
Astigmatism Correction
Slide 23: Visian Toric - Customized Outcomes
Corrects astigmatism Clinical trial underway Myopia from -3.0D to -20.0D - -1 to -4D of refractive cylinder 21 to 45 years of age All patients enrolled - submission to FDA late Q1 early Q2 Targeted Q1 2007 Launch Visian Toric - Customized Outcomes
Slide 24: Outcomes - Highlights
Outcomes - Highlights Population started with over -9D myopia and -2D Cylinder ALL patients reported they were happy with the surgery - 98% VERY or EXTREMELY happy Over 77% could see as well or BETTER without any correction at 1 year postop than they could with their best spectacle correction preop
Slide 25: Cataract US + International
Cataract US + International
Slide 26: Strategic Position - US
Strategic Position - US STAAR is present in cataract - 6% market share in units Position in the dominant new material segment with Collamer(r) material Strong IP position on injector systems for small incision Entry in the new phakic sector - ICL. Wide ranging approval Line extensions to follow - TI
Slide 27: US Market Highlights
US Market Highlights Multifocal/Accomodating - reduced estimates to approx 8% market penetration by the end of 2006 BIG OPPORTUNITY BUT - Penetration rates will remain low until the technology improves to deliver a more predictable low hassle solution 2.6M standard procedures - STAAR has currently a
Slide 28: US Cataract Strategy
US Cataract Strategy 2005 revenues declined 14% in the US 2005 revenues grew 9% in International Why ? - Compliance overhang, Cataract offering outdated, No ICL/TICL approval = lost selling time 2006 US - New environment, Stop the decline, Sales Force incentives in place Revamp the US cataract offer
Slide 29: International Cataract Strategy
International Cataract Strategy Maintain International growth Aspheric Preloaded CE Mark approval Continued preloaded sales growth Current Preloaded = 18% of total IOL sales in Q1 New Canadian distributor agreement
Slide 30: Q1 Financial Results
Q1 06 Financial Results $13.3 Million in revenue 73% Visian sales growth year-over-year; 86% sequentially Visian represented 18% of total revenue in Q1 vs. 10% in Q405 TICL represents 29% of Refractive Sales through Distributor markets - up from 24% in Q1 05 29% Preloaded IOL sales growth year-over-
Slide 31: Balance Sheet Highlights
Balance Sheet Highlights Q1 2006 Q1 Consolidated Cash of $9.7 million Q1 Debt of $1.7 million Estimated burn rate for 2006 - at or below 2005 burn rate of $8.5 million Incremental spend to launch the ICL - $2.5M annually Debt financing (final agreements under review) - $3.0 million bank line of cred
Slide 32: 2006 Priorities
2006 Priorities Successfully launch the ICL in the US Continued growth in International Enrich the US cataract pipeline and position it for growth in US market ICL/TICL approval in China Set the scene for significant new approvals in 2007 - TICL in US, cataract products, US and International Prudent
Slide 33: Management Team
Management Team David Bailey, President, Chief Executive Officer 18 years of healthcare management; CIBA Vision, Bausch & Lomb, ChironVision, Johnson & Johnson Deborah Andrews, Vice President, Chief Executive Officer 11 years at STAAR, 4 years of audit and public accounting experience; Bourns, Inc.,
Slide 34: Investment Considerations
Investment Considerations Large and growing addressable market - High Growth, High Margin Leadership in phakic implants - the Visian Implantable Collamer Lens Opportunity to rebuild Share in the Cataract market Poised for Growth . Experienced Management team . Unique and Innovative Products . Adequa
Slide 35: Thank You
Thank You STAAR Surgical Company