Clearpoint Neuro Inc. · NASDAQ:CLPT
Clearpoint Neuro — Investor Presentation (May 2020)
35 slides from Clearpoint Neuro's investor presentation, May 20, 2020
Slide 1: ClearPoint Neuro May 2020
CLEARPOINT NEURO May 2020
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statements herein concerning ClearPoint Neuro, Inc. (the “Company”) plans, growth and strategies may include forward-looking statements within the context of the federal securities laws. Statements regarding the Company's future events, developments and future performance,
Slide 3: Severe Neurological Disorders Impact Millions of Patients and Families Each Year
Severe Neurological Disorders Impact Millions of Patients and Families Each Year is, CLEARPOINT Parkinson’s Disease AADC Deficiency Epilepsy
Slide 4: Only a fraction of patients with debilitating neurological disorders are treated surgically
Only a fraction of patients with debilitating neurological disorders are being treated surgically today Prevalence of Neurological Disorders o © © © o© © © © © © © © © @ © © © © © @ © © © © © © @ © © o @ © © © @ co 9 © o 9 © @ 9 9 9 9 @ 9 9 9 © 9 © f9 9 9 © 9 © Oo © o © © © © © @ © © @ 9 © @ 0 90 ©
Slide 5: The Movement to Minimally Invasive Procedures has Happened Everywhere Else in the Body
The Movement to Minimally Invasive Procedures has Happened Everywhere Else in the Body This transition has always had two things in common * More patients being treated * Procedures enabled by live image guidance ise CLEARPOINT’ © 2020 CLEARPOINT NEURO
Slide 6: Traditional Stereotactic Neurosurgery is Limited
Traditional Stereotactic Neurosurgery is Limited PRIMARY CHALLENGE The Skull is not ‘See Through’ X-Ray and CT do not show structures of the brain Large, Metallic Navigation Frames are not compatible inside an MRI Magnet Surgical Image Guidance in the Operating Room is not live but rather ‘Co-Regist
Slide 7: Our Solution — Procedure Overview
OUR SOLUTION — PROCEDURE OVERVIEW ClearPoint® Neuro Navigation System Platform An MRI Compatible Navigation System Delivering Live MRI Guidance to the Procedure 388; CLEARPOINT © 2020 CLEARPOINT NEURO 7 38° NEURO
Slide 8: Our Company
OUR COMPANY ClearPoint Neuro: A Proven Platform Key P uct: HEADQUARTERS Irvine, CA 2019 REVENUE* $11.2m MARKET CAP 255m” U.S. PATENTS ISSUED 79 429 pending (A) As of March 31, 2020 {B] For the year ended December 31, 2019 CLEARPOINT FDA C€ Marked Platforms EMPLOYEES 50+ 26+ field | 24+ production &
Slide 9: ClearPoint Neuro: Two Companies in One
Our Company ClearPoint Neuro: Two Companies in One CLEARPOINT NEURO A focus in Neurosurgery and unparalleled clinical support A Medical Device Company * $100M+ Existing Market, growing > 10% * Platform Navigation, Therapy, Confirmation * Predictable, Growing Installed Base * Stable 15%+ Growth is, C
Slide 10: Broad and Growing User Base of Leading Neurosurgeons
BROAD AND GROWING USER BASE OF LEADING NEUROSURGEONS Clearroint | is > Installed i in 60 Active Clinical Sites at Top US Hospitals and Grow UC San Francisco San Francisco VA Stanford Univ Lucile Packard (Stanford Children’s) UCSF Benioff Childrens. usc UC San Diego Univ of Colo Univ of Utah Univ of
Slide 11: Our MRI-guided therapy platform is currently being used to...
Our MRI-guided therapy platform is currently being used to... Medtronic Medtronic PIC) ©eyager isn St. JUDE MEDICAL . Teese MONTERIS W Neurocrine Boston, Scientific avant BlueRock NELRO BENE STEMCELL e. CLEARPOINT SIEMENS IMRIS © 2020 CLEARPOINT NEURO u
Slide 12: Capabilities
CAPABILITIES Our platform enables choice of precision-guided therapies and services CLEARPOINT NEURO Artificial Intelligence LEARPOINT © 2020 CLEARPOINT NEURO EURO 12
Slide 13: Capabilities: The Parkinson's Disease Patient
CAPABILITIES Example: The Parkinson’s Disease Patient Enabling Surgeons to choose the right tool for the right patient LEARPOINT © 2020 CLEARPOINT NEURO 13
Slide 14: Market Potential for Procedures
MARKET POTENTIAL FOR PROCEDURES GLOBAL SCALE Included Strategic & Focused Expansion to new geographies either direct or through partners . Below Leverage existing sales channel for other distribution opportunities (i.e. non-neuro CLS Laser Distribution) Expansion and Leverage 50,000+ 20+ Current non
Slide 15: Market Opportunity
Market Opportunity ¢¢ CLEARPOINT © 2020 CLEARPOINT NEURO
Slide 16: Deep Brain Stimulation
Deep Brain Stimulation Deep brain stimulation (DBS) uses a surgically implanted medical device, similar to a cardiac pacemaker, and leads to deliver controlled electrical stimulation to precise targeted areas in the brain. es CLEARPOINT ClearPoint® is used to accurately place leads in the appropriat
Slide 17: Neuro Navigation: Deep Brain Stimulation
]. Neuro Navigation Deep Brain Stimulation CLEARPOINT R INDUSTRY CHANGE Boston Medtronic BS) Abbott NELROPACE Parkinson’s Patient Population (US) Movement Disorders DBS Procedure Volumes Neuromodulation (Global): Currently 10% Annual Growth* Patients with * 12,500 implantations per Parkinson’s disea
Slide 18: Neuro Navigation: Deep Brain Stimulation
]. Neuro Navigation Deep Brain Stimulation CLEARPOINT MUST FACTOR INDUSTRY CHANGES Geethe Medtronic ES) Abbott NELROPACE Parkinson’s Patient Population (US) 2019 ; ; 400 1.2M Patients with implants Parkinson’s disease 12,000 5 6,000 are / ; Implants/yr °° Jead implants “ 1M Patients diagnosed and tr
Slide 19: ClearPoint Neuro Laser Therapy
2. Therapy ClearPoint Neuro Laser Therapy LITT uses laser energy to destroy unwanted cells Laser Interstitial Thermal Therapy (LITT) is a minimally invasive surgical technique. A laser fiber is inserted through a tiny hole in the skull and then the laser applies energy to the targeted lesion, killin
Slide 20: ClearPoint Neuro's Right to Win in MRgLITT
2. Therapy ClearPoint Neuro Laser Therapy ClearPoint Neuro’s Right to Win in MRgLITT * ClearPoint Neuro chosen by INFLEXION™ Head Fixation Frame TRANBERG® Laser ClearPoint® Compatibility Kits Neurosurgeons for the most difficult Neuro LITT cases today. * One clinical support team and a simplified wo
Slide 21: Significant Addressable Neuro Market in Epilepsy and Tumor
2. Therapy ClearPoint Neuro Laser Therapy Significant Addressable Neuro Market in Epilepsy and Tum Deepest, Smallest, Most Eloquent Focal, Mesial Temporal Epileptic Zone 15,000 * Initial beachhead market -> focal, MTLE cases and the most difficult brain tumor cases. Malignant Tumor 26,000 o... Tumor
Slide 22: MRgLITT Market is Small, but Strong
2. Therapy ClearPoint Neuro Laser Therapy MRgLITT Market is Small, but St * Patients will continue to shift from open craniotomy to minimally invasive methods. Estimated US Neuro LITT Cases ') US Neuro LITT Revenue 200 $40,000,000 * Clinical evidence and payer $35,000,000 support for LITT is growing
Slide 23: Biologics & Drug Delivery: Pediatric Indications
3. Biologics & Drug Delivery Pediatric Indications Disorder AADC Deficiency Diffuse Intrinsic Pontine Glioma (DIPG) Friedreich’s Ataxia Angelman Syndrome is, CLEARPOINT Description Rare (<1/1,000,000) autosomal recessive disorder caused by mutations in the DDC gene leading to significant deficiencie
Slide 24: Biologics & Drug Delivery: Pediatric Indications
3. Biologics & Drug Delivery Pediatric Indications Disorder Sanfilippo A (MPS IIIA) Tay-Sachs (GM2 gangliosidosis) GM1 gangliosidosis Description Non-Clinical — Phase I/II | Trial Autosomal recessive, neurodegenerative lysosomal storage disorder affecting 1/1000,00 births. The primary disease charac
Slide 25: Biologics & Drug Delivery: Adult Indications
3. Biologics & Drug Delivery Adult Indications Disorder Glioblastoma Parkinson's Disease Huntington’s \ Disease a Amyotrophic Lateral Sclerosis (ALS) bitps:/ ww. mayoclini clinic.org/diseases-c Description Non-Clinical Phase I/II Trial One of the most common and highly invasive brain neoplasms with
Slide 26: Patient Treatment Opportunity/Year: AADC Deficiency
PATIENT TREATMENT OPPORTUNITY/YEAR 3. Biologics & Drug Delivery Estimated $1.5B* Market Opportunity As Platform for Gene Therapy AADC Deficiency syndrome: Rare autosomal recessive disorder caused by mutations in the DDC gene leading to significant deficiencies in dopamine and other neurotransmitters
Slide 27: Patient Treatment Opportunity/Year: Sanfilippo Syndrome
PATIENT TREATMENT OPPORTUNITY/YEAR 3. Biologics & Drug Delivery Estimated $1.5B* Market Opportunity As Platform for Gene Therapy 100,000 10,000 5,000 1,000 500 Sanfilippo Syndrome: Autosomal recessive, neurodegenerative lysosomal storage disorder affecting 1/100,000 births. The primary disease chara
Slide 28: Patient Treatment Opportunity/Year: Friedreich's Ataxia
PATIENT TREATMENT OPPORTUNITY/YEAR 3. Biologics & Drug Delivery 100,000 10,000 5,000 1,000 500 Estimated $1.5B* Market Opportunity As Platform for Gene Therapy Friedreich’s Ataxia: A genetic, progressive, neurodegenerative movement disorder, with a typical age of onset between 10 and 15 years with a
Slide 29: Biologics & Drug Delivery: $1.5B Market Opportunity
3. Biologics & Drug Delivery Estimated $1.5B* Market Opportunity As Platform for 200,000 A I < Parkinson’s Disease = 100,000 ~$1.2B3 = La Zz 5 = & 10,000 a Huntington ° Disease i ' : ~$120M?3 Z Angelman 7 s 5,000 Syndrome 2 Friedreich’s ~$72M" < Ataxia ra ~$60M? a 5 1,000 o = AADC Deficiency = “Hau
Slide 30: Global Scale: Achieve Scale and Progress Toward Profitability
4. Global Scale Achieve Global Scale and Progress Toward Profitability Established Sales Channel capable of distributing other surgical products * Current Revenue for non-neuro CLS Laser Applicators Manufacturing Facility in Irvine capable of producing 5x current demand with existing footprint CE Ma
Slide 31: Financials
Financials
Slide 32: Growth in Case Volume and Revenue
Growth in Case Volume and Revenue Disposables Ml Biologics and Drug Delivery Capital & Service 801 $1,662 Case Volume Growth _ $11,200 2013-2019 £25 9 32.7% _ $1471 380 $676 267 a $938 163 2 6 & 6,884 3 causa $3,380 $3,998 $5,233 $5,313 $6; = uw 2013 2014 2015 2016 2017 2018 2019 2015 2016 2017 2018
Slide 33: Cash Flow From Operations 2015-2019
2015 - 2019 Cash Flow From Operations 2015 $(8,637) SS $8, CLEARPOINT 2016 $(5,819) 2017 $(5,993) 2018 $(4,638) 2019 $(2,850) CASH AT March 31, 2020 $17.0 million
Slide 34: CLPT Capabilities Executive Summary
CLPT CAPABILITIES Executive Summary Unique Platform technology enabling Precision MRI-Guided Therapies to restore quality of life for some of the most debilitating disorders Large, Growing installed base in © 60 of 250+ leading Neurology LWA centers in U.S. Procedure volume has grown 0 (| | 33%+ CAG
Slide 35: ClearPoint Neuro
CLEARPOINT NEURO