Arcticzymes Technologies Asa · OSL:AZT
Arcticzymes Technologies Asa — Q3 2018 Earnings Presentation
24 slides from Arcticzymes Technologies Asa's earnings presentation, Oct 18, 2018
Slide 1: Q3 2018 Presentation
Q3 2018 Presentation 18.10.2018, Oslo
Slide 2: Agenda
Agenda • Highlights • Beta-glucans • Animal- and Consumer health • Cancer • Advanced wound care • Enzymes • Molecular and new markets • Q3 Financials • Outlook for 2018 2
Slide 3: Biotec in brief
Biotec in brief A corporation with two independent versatile technology platforms who both benefit from underlying market growth Beta-glucans Enzymes • A common unique technology platform with • Fast growing business that is developing and immune modulating products for improved selling unique enzym
Slide 4: Highlights Q3 2018
Highlights Q3 2018 Sales & Gross contribution 25 000 • Q3 sales of MNOK 22.1 (14.4) Sales Gross contribution • EBITDA of MNOK -0.2 (-7.3) 20 000 • ArcticZymes secured first supply 15 000 agreement for SAN in gene therapy • New VP wound Care, Finn Ketler 10 000 • Woulgan Q3 sales of MNOK 0.9 (0.4) 5
Slide 5: Beta-glucans
BIOTEC PHARMACON
Slide 6: Status Woulgan®
Status Woulgan® • Finn Ketler started as new VP for the Wound Care business. • Number of Woulgan accounts increasing • Sellers focus on increasing number of users & driving adoption of new, additional treatment. • Germany experiencing growth despite reimbursement uncertainty. • Time span from accept
Slide 7: Activities in all markets
Activities in all markets UK Nordics Germany Clinical 300 patient study manuscript 2 publications from the Nordic case series No studies ongoing published in September’s Journal of in “Sårmagasinet” and “Sår” respectively Wound Care 35 patients with 42 wounds were enrolled In ulcer-type wounds, Woul
Slide 8: SBG® in current neuroblastoma vaccine trial
SBG® in current neuroblastoma vaccine trial SBG® and Neuroblastoma • High impact indication in children with a large unmet medical need (patient relapsed high-risk neuroblastoma have very poor prognosis) • Development of an effective therapy to treat and prevent relapsed neuroblastoma highly desired
Slide 9: SBG® in immunotherapy of neuroblastoma
SBG® in immunotherapy of neuroblastoma Clinical trials of the bivalent ganglioside vaccine in combination with SBG® for high-risk neuroblastoma 2009 – 2013 2013 – 2016 2016 – 2019 2020 – 2021 Phase I Safety Phase I/ II Efficacy Phase II Efficacy Phase II/III Efficacy Multi-site Randomised ≥2nd remis
Slide 10: Activities for M-Glucan® and M-Gard®
Activities for M-Glucan® and M-Gard® Over 20 years experience with immune-modulating beta-glucans Animal health • Sales experiences annual and seasonal fluctuations driven by demand for health feed within the aquaculture sector. • Difficult for Biotec to influence consumption in the aqua marine sect
Slide 11: ArcticZymes: Molecular and new markets
ArcticZymes Molecular and new markets
Slide 12: Commercial Updates
Commercial Updates Combination of factors attributed to third quarter performance: • New business development team in full force • Re-establishment of sales of our main product to ArcticZymes largest customer: ✓ Orders received to replenish sequestered stocks ✓ Mutual efforts ongoing to achieve a mo
Slide 13: First Supply Agreement
First Supply Agreement • 1st supply agreement with a major Molecular Diagnostics (MDx) company who has integrated Shrimp Alkaline Phosphatase (SAP) into their liquid biopsy tests • Customer is a global leader in non-invasive oncology and prenatal testing • As business matures sales will be in the ra
Slide 14: Second Supply Agreement
Second Supply Agreement • 1st supply agreement for utility of Salt Active Nuclease (SAN-HQ) in the cGMP manufacturing of viruses for gene therapy. Milestone achievement for ArcticZymes • The undisclosed customer is a leading pioneer in the rapidly growing gene therapy market • Unlike traditional the
Slide 15: Innovation Update
Innovation Update • Prototypes of our novel ligases have been sent to Function of Ligases several key customers for evaluation • Ligases are enzymes that join together genetic material • High market demand for novel ligases; especially • DNA ligases join together DNA fragments within our existing cu
Slide 16: Q3 Financials
Q3 Financials ites. BIOTEC ret” PHARMACON
Slide 17: Cash flow explained by increase in receivables
Cash flow explained by increase in receivables Net cash position Third quarter changes in cash of -7.0 MNOK Amounts in NOK 1.000' 50 000 45 000 • 22.3 (19.1) MNOK in short-term 40 000 receivables 35 000 • 12.8 (15.3) MNOK in short-term payables 30 000 Cash balance of 28.1 MNOK end of Q3 2018 25 000
Slide 18: Q3 2018 Cash flow detailed
Q3 2018 Cash flow detailed Q3 2018 Cash flow • Q3 2018 Cash flow from operations -6.4 MNOK 40 000 Amounts in NOK 1.000' • Explained by change in working capital of 35 000 • Receivables -8.6 MNOK 30 000 • Payables 2.0 MNOK • Inventory 0.3 MNOK 25 000 20 000 • Q3 2018 Cash flow from investments -0.6 M
Slide 19: Good Q3 sales in all segments
Good Q3 sales in all segments Biotec revenues per segment Amounts in NOK 1.000' 11 000 Segment Q3 Sales ArcticZymes MNOK 9.7 7 000 Animal & Consumer Health MNOK 11.5 Woulgan MNOK 0.9 Group MNOK 22.1 3 000 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 -1 000 Animal & Consumer Health ArcticZ
Slide 20: Solid quarter with improved EBITDA
Solid quarter with improved EBITDA EBITDA Operating Expenses Amounts in NOK 1.000' Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Personell expenses 0 Property, plant and equipment -1 000 IT -2 000 External services -3 000 Marketing and sales -4 000 License, patent and trademark -5 000 Othe
Slide 21: Beta-Glucan performance
Beta-Glucan performance Beta-Glucans Q3 YTD (Amounts in NOK 1.000) 2018 2017 2018 2017 • Sales continues to be driven by Animal Sales revenues 12 372 8 835 25 447 26 140 Health. Gross profit 5 033 3 081 11 283 10 171 Operating expenses -7 955 -8 653 -22 834 -26 344 • Reduced expenses on an quarterly
Slide 22: ArcticZymes performance
ArcticZymes performance Enzymes Q3 YTD (Amounts in NOK 1.000) 2018 2017 2018 2017 • Improvement of 4.2 MNOK in quarterly Sales revenues 9 776 5 602 21 814 22 871 sales compared to same quarter in 2017 Operating expenses -6 940 -7 334 -20 741 -21 424 EBITDA 3 064 -750 3 044 4 411 • Operating expenses
Slide 23: Outlook 2018
Outlook 2018 rf. a + a8. BIOTEC ret” PHARMACON
Slide 24: Outlook 2018
Outlook 2018 • Overall sales growth versus 2017 uncertain • Reduction in cash consumption • Review of Woulgan go-to-market model to ensure further growth • AZ aims to grow the business organically while also looking for inorganic growth opportunities 24
ArcticZymes Technologies — Q3 2018 Earnings Presentation on 6ix