Slide 1: Annual General Meeting
Annual General Meeting 24 October 2018 © 2018 Cogstate Ltd. All rights reserved. Introduction detailed in AGM running sheet. 1
Slide 2: Board of Directors
Board of Directors Audit, Risk Remuneration & Compliance & Nomination Committee Committee Martyn Myer Non-Exec Chairman Yes Chair Founding Director and substantial shareholder Brad O’Connor Chief Executive Officer N/A N/A CEO since December 2005 Jane McAloon Independent Non-Exec Director Chair Yes E
Slide 3: Board members
Also on the phone is Richard van den Broek from Connecticut. Richard joined the Cogstate board in August 2010. As a former healthcare analyst and now a fund manager in the healthcare space, Richard is a very valuable resource for the management team and Board with his intimate knowledge of the drug
Slide 4: Alignment of Board & Management
Alignment of Board & Management Strong conviction from long-term shareholders has enabled Cogstate to develop a unique technology platform, extensive validation and expanding supporting services. 44.2% Shareholding of current Board and management As a demonstration of 17.97% Dolby Family Related p
Slide 5: Why will Cogstate succeed?
Why will Cogstate succeed? 4 It is worth considering the reasons for our confidence in Cogstate. 4
Slide 6: Large & Growing Cognitive Assessment Market
Large & Growing Cognitive Assessment Market $4.1 • Research Cosmos forecasts the market size for cognitive assessment and training in healthcare to grow from USD 962.0 Million in 2016 to USD 4,127.2 Million by 2021, at a BILLION CAGR of 33.8%. • “The applications segment [represented in this forecas
Slide 7: Large & Growing Cognitive Assessment Market
Large & Growing Cognitive Assessment Market $4.1 • Research Cosmos forecasts the market size for cognitive assessment and training in healthcare to grow from USD 962.0 Million in 2016 to USD 4,127.2 Million by 2021, at a BILLION CAGR of 33.8%. • “The applications segment [represented in Clinical thi
Slide 8: Addressing an Unmet Need
Addressing an Unmet Need For drug candidates that cross the blood-brain barrier, pharmaceutical researchers need reliable and valid measures to understand how these drugs impact human cognition There are traditional, paper-and-pencil neuropsychological assessments available for the many cognitive do
Slide 9: Both Positive and Negative Change
Both Positive and Negative Change Safety Efficacy Does the therapy Does the therapy improve negatively impact aspects of thinking? aspects of thinking? e.g. Alzheimer’s disease e.g. oncology 8 Drug development is usually seeking to weigh the positive, treatment-related effects of a drug with any pot
Slide 10: Application in Alzheimer's Disease & Well Beyond
Application in Alzheimer’s Disease & Well Beyond >70 >100 Languages Indications & Dialects >55 >400 Peer Reviewed Countries Publications 9 In the 2017 financial year, Cogstate tracked 136 different clinical trial opportunities in 41 different indications. With the addition of our pediatric and rare
Slide 11: Short Term Strategy for Growth
Cogstate will continue to Full suite of solutions for Continuing and expanding our support large pharma (currently single-site to large global strategic academic work with 14 of the top 15 by studies partnerships in high-growth R&D spend), but small and areas, as we’ve done in AD and mid-size pharma
Slide 12: Strategic Focus
And finally, we believe that Cogstate’s strategic focus will enable the Company to benefit from those positive market conditions. Now, I would like to hand over to our Chief Executive, Brad O’Connor, to further discuss both the financial results as well as the strategic changes that have bene implem
Slide 13: Brad O'Connor, CEO
Brad O’Connor CEO 11 11
Slide 14: Cogstate Commercial Strategy
Cogstate Commercial Strategy 1 Sales Contracts Executed, by Grow Revenue & Financial Year (US$) Profit From 40,000,000 Clinical Trials 35,000,000 30,000,000 25,000,000 2 20,000,000 15,000,000 10,000,000 5,000,000 Launch Medical - FY15 FY16 FY17 FY18 Device Recognised Revenue, by Financial Year (US$)
Slide 15: Cogstate Commercial Strategy
Cogstate Commercial Strategy 1 Grow Revenue & Profit From Clinical Trials 2 Launch Medical Device 3 Focus On Long Term Growth And Profitability Sensitivity Ease of use Culturally neutral Impairment & change Wide adoption in drug clinical trials 13 In the Healthcare segment, we have been focused on t
Slide 16: Cogstate Commercial Strategy
Cogstate Commercial Strategy 1 Grow Revenue & Profit From Clinical Trials • We have focused on long term return on investment, rather than short term profits 2 • Profits from the Clinical Trials segment were invested in both new technology and launch of the medical device Launch Medical • Budget dis
Slide 17: Adapting to New Information
Adapting to New Information • The impact of the failure of Alzheimer’s trials – Reduction in contracted future revenue for Cogstate – Fear that we are further away from a treatment for Alzheimer’s disease that would lead to demand for better diagnostic tools • Medical device progressing, but changin
Slide 18: Strategy Adjustment
Strategy Adjustment • Annualised staff costs in excess of $5m removed from the business through restructure implemented from April 2018 – July 2018 – These costs accounted for $3.46m of costs of sales and operating costs in FY18 • In total, 30 roles removed from the business – 17% of total staff hea
Slide 19: Sales Resources
sales resources against the changed contracted revenue position. It is important to note that we have not reduced costs in the business development area for our clinical trials business. We continue to see good growth in the clinical trials business and, with the customer facing senior science resou
Slide 20: Financial Analysis (US$)
Financial Analysis (US$) Full Year Ended 30-Jun-17 30-Jun-18 Revenue from operations 26,404,953 28,956,884 • Clinical Trials sales contracts $36.1m, up 22% Clinical Trials Revenue 26,187,137 28,080,187 • Revenue $28.96m, up 10% Clinical Trials EBITDA 14,861,048 15,905,193 56.7% 56.6% R&D (incl. acad
Slide 21: Cognigram Commercialization Loss
The loss from the Cognigram commercialization was just under $2m, approx. double the previous year 17
Slide 22: FY19 Guidance
FY19 Guidance • Contracted revenue position is consistent with the prior year – Even after taking into account recent contract cancellations due to failure of two potential Alzheimer’s disease therapies • Sales growth prospects are good, but even at flat sales, profit is projected to increase due to
Slide 23: FY19 Q1 Results
FY19 Q1 Results Results in line with re-set expectations • $5.4m Clinical Trial sales contracts signed – Current indicators suggest a stronger December quarter • $29.8m of contracted future revenue at 30 Sep 2018 – Up from $28.4m announced in July – Of $6.4m cancellations announced, $2.4m has been r
Slide 24: Formal Resolutions
Formal Resolutions 20 We will now move to formal portion of the meeting including the various resolutions to be considered today. Can I begin by noting that I have signed the minutes of the previous Annual General Meeting of Cogstate Ltd as Chairman of that meeting and a copy of the minutes are avai
Slide 25: Resolution 2
Resolution 2 Adoption of the Remuneration Report (Non-binding Vote) For 27,239,531 Against 337,356 Abstain 48,606 118,266 open votes are held by the Chairman 21 21
Slide 26: Resolution 3a
Resolution 3a Re-election of Martyn Myer For 52,928,840 Against 263,685 Abstain 21,480,391 108,135 open votes are held by the Chairman 22 22
Slide 27: Resolution 3b
Resolution 3b Re-election of David Dolby For 53,000,037 Against 268,885 Abstain 21,403,994 108,135 open votes are held by the Chairman 23 23
Slide 28: Resolution 4
Resolution 4 Issue of Options to CEO For 70,088,864 Against 356,359 Abstain 43,045 114,666 open votes are held by the Chairman 24 24
Slide 29: Resolution 5
Resolution 5 Approval of Additional 10% Placement Facility For 74,306,925 Against 334,188 Abstain 19,103 120,835 open votes are held by the Chairman 25 25
Slide 30: Light Refreshments
Members are invited to join the directors and staff for light refreshments. 26 I thank you all for your attendance. Members are invited to join the Directors and Staff for light refreshments. 26
Slide 31: Cogstate
© Cogstate