Slide 1: Pacific Edge Investor Presentation FY 2022 Results
PACIFIC EDGE INVESTOR PRESENTATION FY 2022 RESULTS 26 MAY 2022
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Important Notice by their very nature, involve inherent risks and uncertainties. Many of An investment in securities of PEL is subject to investment risk and other This presentation has been prepared by Pacific Edge Limited (PEL) solely those risks and uncertainties a
Slide 3: Dr Peter Meintjes and Grant Gibson
DR PETER MEINTJES GRANT GIBSON Chief Executive Officer Chief Financial Officer
Slide 4: Agenda
AGENDA 1. Highlights 2. About Pacific Edge 3. Operational performance 4. Framing our investment Program 5. Financial Performance 6. Outlook 7. Q&A
Slide 5: FY22 Highlights: Test Volumes Accelerate in the Pivotal US Market
FY 22 HIGHLIGHTS: TEST VOLUMES ACCELERATE IN THE PIVOTAL US MARKET 46% 59% 49% $19.8M $105.4M GLOBAL TESTING US TESTING GROWTH IN CASH, CASH NET LOSS AFTER VOLUMES VOLUMES (TLT*) OPERATING EQUIVALENTS & TAX (TLT*) REVENUE SHORT-TERM DEPOSITS Global TLT of 23,086 tests US TLT of 18,864 tests Operatin
Slide 6: Pacific Edge: An Overview of Our Business and the Opportunity
PACIFIC EDGE: AN OVERVIEW OF OUR BUSINESS AND THE OPPORTUNITY
Slide 7: Mission and Vision
Mission To help improve people’s lives and patient outcomes by providing leading solutions for the early detection and management of cancer. Vision A world where the early diagnosis and better treatment of cancer is within reach of everyone. “Nobody should die of cancer”
Slide 8: Pacific Edge at a Glance
PACIFIC EDGE AT A GLANCE FROM IP DEVELOPMENT TO PATIENT • IP: 4x patent families in urothelial cancer, with >80 patents including RNA biomarkers and their analysis algorithms CANADA • Cxbladder: Advanced genomic biomarker tests from a non-invasive urine sample for the early detection and management
Slide 9: Urothelial Cancer Is a Significant Global Healthcare Challenge
UROTHELIAL CANCER IS A SIGNIFICANT GLOBAL HEALTHCARE CHALLENGE ~550K ~200K 6TH ~70% Annual cases Annual Most common Recurrence and growing1 deaths1 cancer in men1 • Hematuria evaluation for suspected urothelial cancer has high detection and surveillance costs2 • Current American Urological Associati
Slide 10: Molecular Diagnostics Value Chain: Patient Journey
MOLECULAR DIAGNOSTICS VALUE CHAIN: PATIENT JOURNEY SURGICAL OR GENETIC RISK DISEASE SYMPTOMS THERAPEUTIC AT BIRTH MANIFESTS ONSET INTERVENTION GENOMIC SCREENING ASYMPTOMATIC SCREENING PATIENT/DISEASE MANAGEMENT SURVEILLANCE (PERSONALIZED GENETIC RISK) (EARLY DETECTION) (CLINICAL DECISION MAKING) (RD
Slide 11: Cxbladder in the Patient Care Pathway
CXBLADDER IN THE PATIENT CARE PATHWAY VALUE PROPOSITION Cxbladder Cxbladder Cxbladder TRIAGE DETECT MONITOR Typical Primary Care Physician Urologist Urologist (CxbT) (CxbD) (CxbM) standard of Patient presents with Current guidelines for Monitor for recurrence hematuria and clinician hematuria evalua
Slide 12: Urothelial Cancer (UC) in the US Market
UROTHELIAL CANCER (UC) IN THE US MARKET VALUE PROPOSITION Cxbladder Cxbladder Cxbladder TRIAGE DETECT MONITOR 4TH US$220,000 US$4.9B (CxbT) (CxbD) (CxbM) Most common Average lifetime Forecast direct costs cancer in men cost2 per patient associated with in the US1 urothelial cancer in 20202 Patient c
Slide 13: FY22 Operational Performance
FY22 OPERATIONAL PERFORMANCE
Slide 14: Global: Commercial Tests Growing Strongly as US Accelerates
GLOBAL: COMMERCIAL TESTS GROWING STRONGLY AS US ACCELERATES Total Lab Throughput (TLT) has increased 46% to 23,086 tests in FY22 PEL: Global Testing Volumes (TLT*) 25,000 23,086 46% • Stronger US growth despite COVID continuing to impact sales efforts 20,000 16,861 15,814 11,950 Test volumes through
Slide 15: Americas: Sales Activity and Indicators
AMERICAS: SALES ACTIVITY AND INDICATORS Americas’ Testing Volume (TLT) 20,000 18,864 18,000 16,000 59% 14,000 13,240 9,881 11,858 12,000 Test volume 10,000 6,989 8,000 6,934 6,000 4,000 8,983 6,251 2,000 4,924 Distribution of Current - U.S. Customers FY20 FY21 FY22 Pacific Edge Diagnostics USA, Hers
Slide 16: Americas: COVID Impact and Recovery
‘Four-week Trailing’ test volumes • • 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Americas ‘Four-week Trailing’ Testing Volumes (TLT) Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 D
Slide 17: Americas: Key Payors Already Activated
AMERICAS: KEY PAYORS ALREADY ACTIVATED • Centers for Medicare and Medicaid Services (CMS) covers more than 61.5m US citizens over 65 and people on low incomes • Average age of patients presenting with hematuria is over 70 years old. Consequently, the payor landscape skews towards Medicare with more
Slide 18: APAC: New Zealand at the Forefront with Adoption by Primary Care
APAC: NEW ZEALAND AT THE FOREFRONT WITH ADOPTION BY PRIMARY CARE APAC Test Volumes (TLT) • More than 70% of New Zealand’s population are already covered by individual DHB agreements. Further market 4,500 adoption in New Zealand is expected to be slower that 7% 4,222 3,956 other regions with APAC 4,0
Slide 19: The Future: Pacific Edge Investing for Growth
THE FUTURE: PACIFIC EDGE INVESTING FOR GROWTH
Slide 20: Framing Our Investment Program
FRAMING OUR INVESTMENT PROGRAM INPUTS OUTPUTS RESEARCH AND EXCELLENT PATIENT EXPERIENCE OUR PEOPLE AND ACCURATE RESULTS INNOVATION EARLY DETECTION AND Mission OUR PROCESSES Vision CLINICALLY ACTIONABLE CARE To help improve A world where the early lives and patient diagnosis and better treatment outc
Slide 21: Research and Innovation: Understanding the Entire Commercialisation Pathway
1) RESEARCH AND INNOVATION: UNDERSTANDING THE ENTIRE COMMERCIALISATION PATHWAY RESEARCH & INTELLECTUAL TECHNOLOGY PRODUCT INNOVATION PROPERTY COMMERCIALISATION FOCUS AREAS: 1. Evaluate ‘product concepts’ to address unmet clinical needs through market research and scientific/clinical advisory boards
Slide 22: Research and Innovation: Driving IP to Technology
RESEARCH AND INNOVATION: DRIVING IP TO TECHNOLOGY FY22 ACHIEVEMENTS $190M • Publication of TDR study covering CxbR, alone and in Accumulated combination1 investment in Cxbladder over • Important insights on distinguishing High Impact 10+ years Tumours • More R&D needed to develop CxbR as a clinicall
Slide 23: Evidence, Coverage and Guidelines: Change Clinical Practice
2) EVIDENCE, COVERAGE AND GUIDELINES: CHANGE CLINICAL PRACTICE FOCUS AREAS: Generate high-quality clinical validation and utility evidence through clinical studies Use Clinical Utility evidence to: EVIDENCE • Drive the adoption of Cxbladder by clinicians, COVERAGE AND insurers and hospitals ahead of
Slide 24: Global Guidelines Pivotal to Widespread Adoption of Cxbladder
GLOBAL GUIDELINES PIVOTAL TO THE WIDESPREAD ADOPTION OF CXBLADDER Recognition in national guidelines deepens and accelerates commercial use of Cxbladder tests and entrenches coverage by nationally relevant healthcare institutions. • Most influential and largest • Leading urologic authority in Europe
Slide 25: Strengthening the Case for Cxbladder in Key Guidelines
STRENGTHENING THE CASE FOR CXBLADDER IN KEY GUIDELINES BEFORE AFTER INCLUSION INCLUSION INCLUSION We use clinical validity and utility evidence to We use clinical validity and utility attract interest from opinion-leading clinicians, evidence to strengthen the language in and payers, drive early ado
Slide 26: Clinical Evidence Generation Towards Guideline Inclusion (1/2)
CLINICAL EVIDENCE GENERATION TOWARDS GUIDELINE INCLUSION (1/2) STUDY AIM LOCATIONS ENROLLED STATUS** SITES* US Primary study Prospective, single-arm, observational study to develop clinical evidence for Cxbladder tests in USA 12/12 Enrolment complete facilitating early detection, intensifying or de-
Slide 27: Clinical Evidence Generation Towards Guideline Inclusion (2/2)
CLINICAL EVIDENCE GENERATION TOWARDS GUIDELINE INCLUSION (2/2) STUDY AIM LOCATIONS ENROLLED STATUS** SITES* DEDUCT DEtection of Disease in the Upper traCT USA 0/4 Pilot data analysed in early 2024 – Prospective, single-arm, observational study to validate performance of Cxbladder for the decision po
Slide 28: Adoption, Retention and Revenue Generation
3) ADOPTION, RETENTION AND REVENUE GENERATION FOCUS AREAS: 1. Diversify sales process to target Strategic Accounts differently, including education and Key Opinion Leader (KOL) engagement activities ADOPTION, by our Medical Affairs team RETENTION AND 2. Drive protocolized adoption of Cxbladder at th
Slide 29: Capitalizing on Early Momentum (1/2)
CAPITALIZING ON EARLY MOMENTUM (1/2) TARGET US RELATIONSHIPS AMERICAS INITIATIVES • Direct Sales Force: • Up to 9 additional Account Executives and 1 13,790 Regional Sales Director to be added to the sales team taking the total to up to 40* Practicing • New Marke ng & Sales Support Managers (+2 FTE)
Slide 30: Capitalizing on Early Momentum (2/2)
CAPITALIZING ON EARLY MOMENTUM (2/2) ENGAGING WITH CLINICIANS AMERICAS INITIATIVES AND CUSTOMERS • Marketing Activities: • Conference podiums, presentations, posters 50 Urology • Conference adver sing/sponsorship conferences • Increased and targeted marcom activities across the US • Customer Experie
Slide 31: Patients: Building the Cx Brand and Advocacy
PATIENTS: BUILDING THE CX BRAND AND ADVOCACY UNITED STATES OF AMERICA The Bladder Cancer Advocacy Network (BCAN) represents the voice of the patient in the USA: • Dedicated to advancing research and supporting those impacted by the disease • Large and growing community of patients, caregivers, survi
Slide 32: Patients: Building the Cx Brand and Advocacy (APAC)
PATIENTS: BUILDING THE CX BRAND AND ADVOCACY APAC Cancer Society New Zealand: • New Zealand's leading organisation dedicated to reducing cancer incidence, and care • Work closely with communities and decision makers to provide leadership around cancer control Planned partnership activity: • Collabor
Slide 33: Grant Gibson, Chief Financial Officer
GRANT GIBSON Chief Financial Officer
Slide 34: The US and Test Volume Growth Driving Revenues
THE US AND TEST VOLUME GROWTH DRIVING REVENUES Pacific Edge Operating Revenue Regional Revenue Split $14,000 $12,000 49% $11,445 7% $10,000 $7,701 $6,067 $8,000 FY22 $(000) $6,000 $4,370 $4,375 $3,400 $3,817 $4,000 93% $2,085 $1,784 $5,378 $2,000 $1,975 $3,326 ROW Americas $2,033 $2,285 $1,425 $- FY
Slide 35: Accelerating Investment to Capture the US Opportunity
ACCELERATING INVESTMENT TO CAPTURE THE US OPPORTUNITY 2022 2021 Variance Change • Operating revenue growth of 49% Year to 31 March $000 $000 $000 % • Operating expenses up 37%, with sales and marketing making up 56% of this Operating revenue 11,445 7,701 3,744 49% growth as we invest in future growt
Slide 36: Operating Costs Rising in Line with Capital Raising Program
OPERATING COSTS RISING IN LINE WITH CAPITAL RAISING PROGRAM Operating Expenses 2022 2021 Variance Change INVESTING IN FY23 TO DELIVER IN FY24 Year to 31 March $000 $000 $000 % • Operating expenses increase 37% to Laboratory Operations 6,498 5,466 1,032 19% $33.7m Research 5,135 4,584 551 12% • Major
Slide 37: Dr Peter Meintjes, Chief Executive Officer
DR PETER MEINTJES Chief Executive Officer
Slide 38: Outlook: Investing for Long Term Growth
OUTLOOK: INVESTING FOR LONG TERM GROWTH • Pacific Edge expects its investment in innovation, evidence, people, and brand to drive growth in test volumes and revenue • We also expect that the selling environment, including international travel will improve with COVID restrictions easing as the diseas
Slide 39: Q&A
Q&A r PACIFIC bladder _Y"|PACIFIC EDGE
Slide 40: Appendix
APPENDIX PACIFIC EDGE bladder _Y"|PACIFIC EDG
Slide 41: Pacific Edge: A History of Research-Led Innovation and Growth
PACIFIC EDGE: A HISTORY OF RESEARCH-LED INNOVATION AND GROWTH Aug 2021 Cxbladder reaches 70% public healthcare 2012 coverage in NZ 2001 O’Sullivan et al: Pacific Edge Cxbladder Detect Oct 2021 established performance validation Aug 2019 PEB raises $103.5m Journal of Urology Konety et al: Clinical (~
Slide 42: For further information
For further information: Peter Meintjes Chief Executive Officer email: peter.meintjes@pelnz.com Grant Gibson Chief Financial Officer email: grant.gibson@pelnz.com Pacific Edge 87 St David Street, PO Box 56, Dunedin, New Zealand P +64 3 479 5800 F +64 3 479 5801 email: investors@pacificedge.co.nz www