Neuropace, Inc. · NASDAQ:NPCE
Neuropace — JP Morgan Healthcare Conference 2023
20 slides from Neuropace's conference presentation, Jan 9, 2023
Slide 1: JP Morgan Healthcare Conference January 2023
Exhibit 99.2 JP Morgan Healthcare Conference January 2023 1 J A N U A R Y 2 0 2 3
Slide 2: Disclaimer
| 2 Disclaimer In addition to background and historical information, this presentation contains “forward-looking statements” based on NeuroPace’s current expectations, estimates, forecasts and beliefs, including financial results for the fourth quarter and full-year ended December 31, 2022, informat
Slide 3: Drug-Resistant Epilepsy is a Devastating, Highly Undertreated Disease with Significant Unmet Need
Drug-Resistant Epilepsy (DRE) is a Devastating, Highly Undertreated Disease with Significant Unmet Need Epilepsy is a disorder in which abnormal electrical activity in the brain causes seizures th • 4 most common neurological disorder in the 1 U.S. 1 • ~$28B direct medical costs in the U.S. • 2-3X h
Slide 4: One Third of Patients Require Specialized Care
One Third of Patients Require Specialized Care DIAGNOSIS & FIRST LINE TREATMENT SPECIALIZED EPILEPSY CARE Patients Try multiple ~1 in 3 have Comprehensive epilepsy centers diagnosed anti-epilepsy drug-resistant (CEC) provide advanced with epilepsy drugs epilepsy (DRE) diagnostics & treatment options
Slide 5: Closing the Treatment Gap - Growth Opportunity
Closing the Treatment Gap - Growth Opportunity MACRO TRENDS • Number of CECs increased from 151 in 2012 to 3 256 in 2019 50K DRE patients • 150% increase in number of epileptologists admitted to CECs 3 per capita from 2012 to 2019 2 anually • Epilepsy monitoring unit (EMU) admissions 1.2M people liv
Slide 6: Closing the Treatment Gap - Growth Opportunity
Closing the Treatment Gap - Growth Opportunity 50K DRE patients admitted to CECs 2 annually 1.2M people living 1 with DRE in the US 6.5K DRE patients get treatment beyond 3 drugs annually 1 2 3 Chen, Z., et al., JAMA Neurology, 2017. Ostendorf, et al, Neurology, 2022. Definitive Healthcare Claims Da
Slide 7: Annual Core U.S. Market Opportunity at CECs >$2 Billion
| 7 Annual Core U.S. Market Opportunity at CECs >$2 Billion 1 ~50K ~50K New DRE New DRE P Pa ati tien ents ts Admi Admit tt ted ed t to CE o CECs Cs Ann Annuall ually y 50 50 45 45 40 40 $1.4B Annual U.S. Core Market 30K ~48% ~60% 2 Excluding replacement implants 35 35 Focal 30 30 25 25 ~12% 20 20 1
Slide 8: RNS System - Novel Therapy to Address Unmet Need
RNS System - Novel Therapy to Address Unmet Need Brain-Responsive Neuromodulation System Provides Unique Window to the Brain Epilepsy Treatment that is ✓ Personalized Physician Programmer ✓ Targeted ✓ Data-driven Implantable Device with nearly 11-year battery Patient Remote Monitor Patient Data Mana
Slide 9: RNS System Data Allows Physicians to Actively Manage and Customize Ongoing Patient Care
RNS System Data Allows Physicians to Actively Manage | 9 and Customize Ongoing Patient Care Identify Seizure Triggers See Effects of Therapy Changes Monitor Patient Progress Electrographic seizures Therapy change iEEG Data from RNS System Inform Future Surgeries Reveal Seizure Cycles 9 J A N U A R Y
Slide 10: Impressive Seizure Reductions Improve Over Time
| 10 Impressive Seizure Reductions Improve Over Time Median % Reduction in Seizures Original FDA Study Real World & FDA 1,2 Results: Post Approval 82% 82% Study Results: 75% 75% • Statistically 75% 75% 73% 73% 72% 72% greater seizure • 67% median 67% 67% 67% 67% 63% 63% reduction than seizure reduct
Slide 11: Alternative Treatment Options Have Significant Risks and Side Effects
Alternative Treatment Options Have Significant Risks and 11 Side Effects EPILEPSY SURGERY NEUROMODULATION COMPETITORS RNS THERAPY Irreversible destructive procedure Fixed anatomical target Therapy at seizure source only when needed Carries neurocognitive risks Not responsive to brain activity Respon
Slide 12: Exceptional Clinical Outcomes
Exceptional Clinical Outcomes MEDIAN SEIZURE FREQUENCY REDUCTION AT 1 YEAR Prospective FDA-Approved Studies in Adults with Focal Seizures* 100% VNS DBS RNS (NeuroPace) 80% 67% Programming 60% optimization 44% 44% informed by brain data 35% 40% 20% 0% 2 3 4 1 VNS Pivotal Study DBS Pivotal Study RNS P
Slide 13: CEC Diagnostic and Treatment Process
| 13 CEC Diagnostic and Treatment Process Approximately 6 Months Approximately 2-3 Months EMU Admission EMU Admission (1-2 weeks) (1-2 weeks) for non-invasive video EEG for monitoring with temporary Focal Epilepsy ~2/3 of monitoring and imaging implanted electrodes* 1 Patients (current indication) *
Slide 14: DIXI Partnership Offers Comprehensive Solution for Seizure Localization
DIXI Partnership Offers Comprehensive Solution for | 14 Seizure Localization Focal Seizures Start in specific locations of the brain Stereo EEG electrodes are used in CECs for seizure localization • Determine starting location and transmission network of seizure • Stereo EEG is less invasive, offers
Slide 15: Distribution of DIXI Stereo EEG Products Leads to Earlier Patient Engagement
Distribution of DIXI Stereo EEG Products Leads to Earlier | 15 Patient Engagement Accelerates core RNS business by helping to inform therapy decisions earlier • ~2/3 of RNS patients go through intracranial EEG monitoring as part of the diagnostic process • Most patients that have stereo EEG procedur
Slide 16: Strategy to Drive Long-Term Growth
| 16 Strategy to Drive Long-Term Growth Grow the Market Take Share within CECs Referral marketing to Earlier patient education to epileptologists outside CECs increase pull through Direct-to-patient digital Drive RNS adoption at Awareness marketing additional CECs Commercial & Demand Execution Gener
Slide 17: RNS Platform Provides Significant TAM Expansion Opportunities
RNS Platform Provides Significant TAM | 17 Expansion Opportunities Generalized Epilepsy Focal Epilepsy, age <18 • Same RNS System approved for focal • Stimulates seizure network using same epilepsy in adults RNS System approved for focal epilepsy 1 • Enrolling patients in clinical trial (12-17 • FDA
Slide 18: Potential Opportunities Beyond Epilepsy
| 18` Potential Opportunities Beyond Epilepsy Depression PTSD Impulse control Other neurological disorders 18 J A N U A R Y 2 0 2 3
Slide 19: 2022 Financial Performance
| 19 2022 Financial Performance $12.8 Actual 4Q21 Prelim 4Q22 +16% y/y $11.4 $11.2 $11.0 $1.6 $10.2 Revenue $11.0 million $12.8 million $1.4 $1.9 $2.6 $2.5 $2.2 Revenue growth (y/y) 2% 16% +15% Initial Implant $8.5 million $9.8 million Y/Y initial $9.8 $9.2 implant $8.8 $8.5 $8.0 Revenue growth (y/y
Slide 20: NeuroPace: Personalized, Data-Driven Treatment for Epilepsy
NeuroPace Personalized, Data-Driven Treatment for | 20 Epilepsy • Novel and differentiated closed loop, brain-responsive neuromodulation system • Unique data-driven window to the brain • Compelling clinical evidence demonstrating improved outcomes over time 1 • >$2B annual core U.S. addressable mark