Cogstate Ltd · ASX:CGS
Cogstate — Investor Presentation (December 2016)
38 slides from Cogstate's investor presentation, December 2016
Slide 1: Investor Meetings December 2016
INVESTOR MEETINGS DECEMBER 2016 © 2016 Cogstate Ltd. All rights reserved.
Slide 2: We believe that brain health is profoundly important to quality of life
“ We believe that brain health is profoundly important to quality of life and should be easier to measure. That’s why we so passionately apply our expertise, access to data and flexible technology to simplify the measurement of cognition. It’s our core focus, and we won’t stop until cognitive assessm
Slide 3: Company Snapshot
COMPANY SNAPSHOT CAPITAL STRUCTURE SHAREHOLDERS Share Price (01 Dec 2016) $1.065 Board & Management 43.1% Fully paid ordinary shares 113m Former Director (Finkel) 8.04% Market Capitalisation $121m Top 20 83.6% Net Cash (30 Sep 2016) $4.7m MANAGEMENT & BOARD SHARE PRICE CHART Brad O’Connor CEO / Mana
Slide 4: Cogstate Highlights
COGSTATE HIGHLIGHTS • Cogstate is a leader in Cognitive Assessment • Clinical Trials market is immediate growth driver (99% of revenue), with further upside from opportunity in Healthcare • Outsourcing growth trends to continue in Clinical Trials1 • Long life contracts in Clinical Trials (>12mths) p
Slide 5: Simplifying the measurement of cognition in:
SIMPLIFYING THE MEASURMENT OF COGNITION IN: 5
Slide 6: Validated through use in over 1,500 studies
VALIDATED THROUGH USE IN OVER 1,500 STUDIES ACROSS ACADEMIC AND CLINICAL RESEARCH 6
Slide 7: Summary of FY16 Financial Performance
SUMMARY OF FY16 FINANCIAL PERFORMANCE RECORD REVENUES & MAINTAINED GROSS FINANCIAL LEVERAGE POSITIVE EBIT MARGIN THE INCREASE IN REVENUE HAS EVEN AS HEADCOUNT GREW TO DELIVERED SIGNIFICANT EBIT DELIVERED ON GUIDANCE WITH EBIT OF A$1.0M KEEP PACE WITH DEMAND IMPROVEMENT FY16 FY15 Change A$ millions A
Slide 8: Business Update Q1 FY17
BUSINESS UPDATE Q1 FY17 RECORD REVENUE RECORD SALES RECORD BACKLOG MANAGING CONTINUED CASHFLOW PROFITABILITY Q1 revenue was Largest quarter of Record high a record A$11.1M new contract contracted future A Net Operating Positive EBIT signings revenue position Cash Outflow of recorded for the Up 82% o
Slide 9: Continued Growth in Sales Contracts
CONTINUED GROWTH IN SALES CONTRACTS 30,000,000 Q1 RECORD FOLLOWS 25,000,000 STRONG GROWTH IN FY16 20,000,000 US$28.5M of sales contracts signed during FY16 15,000,000 A record US$17.3M of sales contracts signed during the first quarter of FY17. 10,000,000 5,000,000 - FY09 FY10 FY11 FY12 FY13 FY14 FY
Slide 10: Growth in Contracted Revenue
GROWTH IN CONTRACTED REVENUE 30,000,000 RECORD CONTRACTED REVENUE BACKLOG 25,000,000 FY16: • Began year with A$10.9M of 20,000,000 contracted revenue. • An additional A$16.3M of 15,000,000 revenue was recognised as a result of signing US$28.5M of sales contracts throughout the 10,000,000 year. 5,000
Slide 11: Clinical Trials
CLINICAL TRIALS Solutions to accelerate recruitment and measure drug efficacy and safety in cognition 11
Slide 12: New Appointment: George Hunnewell
NEW APPOINTMENT GEORGE HUNNEWELL Chief Operating Officer & President, Clinical Trials • 2IC to CEO, Brad O’Connor • Full P&L responsibility for the Clinical Trials division • Oversee operations including: – Quality Assurance (regulatory compliance); – Product Development (software engineering, quali
Slide 13: George Hunnewell
GEORGE HUNNEWELL Background • Parexel International for approx 15 years • Parexel are one of the largest CROs in the industry, running thousands of clinical trials on behalf of pharmaceutical companies. It is headquartered near Boston, but operates in 85 locations in 51 countries and has over 18,000
Slide 14: Full Service Solution for Measuring Cognition in Clinical Trials
FULL SERVICE SOLUTION FOR MEASURING COGNITION IN CLINICAL TRIALS 14
Slide 15: Clinical Trials Solutions
CLINICAL TRIALS SOLUTIONS 1 ONLINE SCREENER THAT ACCELERATES COGSTATE CLINICAL TRIAL RECRUITMENT USING REMOTE COGNITIVE ASSESSMENTS PRESCREEN 2 COMPUTERIZED ASSESSMENT 3 SCALES MANAGEMENT & RATER TRAINING 15
Slide 16: Clinical Trials Solutions: Computerized Assessment
CLINICAL TRIALS SOLUTIONS 1 COGSTATE PRESCREEN RAPID, SENSITIVE AND RELIABLE TESTS DESIGNED FOR CLINICAL RESEARCH • Screening criteria, Safety and efficacy endpoints 2 • Computerized cognitive tests dramatically increase the sensitivity and specificity of the measurement of human cognitive processes
Slide 17: Clinical Trials Solutions: Scales Management & Rater Training
CLINICAL TRIALS SOLUTIONS 1 COGSTATE PRESCREEN REDUCING TRIAL RISK WITH HIGHER QUALITY OUTCOMES • Specialists in cognitive and behavioral scales o Scales selection/consultation and management 2 (permissions and licenses, source docs, translations, logistics) o Rater training and training materials d
Slide 18: Enhanced Tablet-Based Scales
Cogstate and Clinical Ink have formalized our long-standing relationship with a strategic alliance to deliver enhanced tablet-based scales assessments for CNS clinical trials. The alliance combines, in a single solution, the scientific and adult learning expertise at Cogstate with the market-leading
Slide 19: Joint Solution Delivers
JOINT SOLUTION DELIVERS: Custom edit checks, programmed workflows, and Rater training that reaches beyond the investigator meeting and 1 automated scoring that prevents clerical errors and 3 eLearning platform by elegantly incorporating rater guidance into miscalculations the rating scale instrument
Slide 20: Clinical Research – eSource Model
CLINICAL RESEARCH – eSOURCE MODEL # Days Task Benefit Record Patient Data On Digital Forms No Paper Same Automatically Record To Database No Errors Day Remotely Review Source Documentation On No Travel Portal 20
Slide 21: Key Differentiators
KEY DIFFERENTIATORS • The most widely adopted eSource solution, supported 1,000+ studies in 40 countries – Capable of full study data collection beyond eCOA • Ensure protocol adherence with programmed workflows, branching and edit checks to prevent many errors • “Paper-like” experience, captures han
Slide 22: Well Received by Customers
WELL RECEIVED BY CUSTOMERS Cogstate’s ability to offer eCOA has been positively received, allowing us to bid on new projects as reflected by the 7 outstanding joint proposals totaling over $62M 22
Slide 23: Healthcare
HEALTHCARE Tools to detect cognitive change and impairment in patients (COGNIGRAMTM) 23
Slide 24: New Appointment: Frank Cheng
NEW APPOINTMENT FRANK CHENG President, Healthcare • Reporting directly to CEO, Brad O’Connor • Full P&L responsibility for the Healthcare division • Oversee preparations for launch of Cogstate tech into healthcare market: – Seeking regulatory approval (FDA 510k, EU CE Mark, plus other jurisdictions)
Slide 25: Frank Cheng
FRANK CHENG Background • 22 years experience within diagnostic / device industry: – Executive roles (including President / CEO roles) – Business Development and marketing roles • Most recently Senior VP with NASDAQ listed robotic heart surgery company, where he led worldwide marketing, business deve
Slide 26: Current State of Diagnosis of Cognitive Decline in Primary Care
Current State of Diagnosis of Cognitive Decline in Primary Care: Need for early-diagnosis vs. current clinical practice 1 2 3 4 SKILL GAP TIME GAP STANDARDS GAP REIMBURESMENT GAP Not all primary Cognitive Lack of consensus care physicians assessment is on the appropriate Lack of support by are train
Slide 27: COGNIGRAM
@ CoGNnicRam Welcome to COGNIGRAM, a test of cognitive function prescribed by your clinician. To.get started, confirm your details: First Name Last Name Date of Birth I a ae 1B | understand and acéept the Privacy Policy, a COGNIGRAM is a brief and simple test to measure your cognitive function. It a
Slide 28: One Card Learning
One Card Learning 28
Slide 29: COGNIGRAM Report
COGNIGRAM REPORT Patient & assessment order Information Interactive results and data visualizations Real-time baseline configuration and change score analysis Composite scores (shown) and detailed outcome measures 29
Slide 30: Leveraging Technology to Realise Effective Cognitive Assessment Tools for Primary Care
Leveraging Technology to Realise Effective Cognitive Assessment Tools for Primary Care SENSITIVITY EASE OF USE CUTURALLY IMPAIRMENT HEALTHCARE NEUTRAL & CHANGE & TRIALS High sensitivity Standardised, and specificity in rapid, self Available in all Measure Adoption in AD and administration languages
Slide 31: Potential Sources of Therapeutic Breakthrough / Cogstate in Primary Care
POTENTIAL SOURCES OF COGSTATE IN PRIMARY THERAPEUTIC BREAKTHROUGH CARE : NOT LIMITED TO AD AD Drug Pipeline Hospital-based assessment of cognition • based upon concerns about post-operative cognitive decline • especially important within a US “total cost of care” model Concussion • Concerns about ”r
Slide 32: After Lilly's Result… What Next
AFTER LILLY'S RESULT…WHAT NEXT • Starting earlier – A4 & DIAN studies are measuring the impact of therapy before symptoms but when amyloid is present (Cogstate is an endpoint in both studies) • Other drugs…those getting the most attention include: – BACE inhibiting drugs being developed by Merck, Li
Slide 33: Cogstate Summary
COGSTATE SUMMARY • Positive EBIT expected for H1 FY17, based on strong Q1 performance – September quarter sales results reinforces the exciting growth profile – Strong backlog of contracted future revenue provides visibility into revenue growth for FY17 • Partnership with Clinical Ink provides addit
Slide 34: Cogstate: Assess + Monitor + Improve
COGSTATEG ASSESS + MONITOR « IMPROVE
Slide 35: Contracted Revenue Pipeline
APPENDIX 1 CONTRACTED REVENUE PIPELINE US$17.3m of new sales contracts signed since 1 July 2016 have added an additional A$11.2m to FY17 contracted revenue. This is in addition to the A$17.5m that was secured at 1 July 2016: As at As at As at 30 Sept 2016 30 June 2016 22 Oct 2015 Year 1 FY17 A$28.7m
Slide 36: Contracts Signed vs. Revenue, Per Quarter
APPENDIX 2 CONTRACTS SIGNED VS. REVENUE, PER QUARTER 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Contracts Executed A$ Revenue Recognised A$ 36
Slide 37: Quarterly Book-to-Bill Ratio
APPENDIX 3 QUARTERLY BOOK-TO-BILL RATIO New contract signings in QUARTERLY BOOK-TO-BILL RATIO 1Q17 of A$22.6m exceeded 4.50 the A$11.1m of revenue in the 4.00 3.50 same period by 2.04x (Book- Future Growth 3.00 to-Bill ratio). New contract 2.50 signings have exceeded 2.00 1.50 revenue (Book-to-Bill
Slide 38: Summary Balance Sheet
APPENDIX 4 SUMMARY BALANCE SHEET 30 JUNE 2016 30 JUN 2015 A$’000,000 A$’000,000 Assets - Cash and cash equivalents 7.47 5.50 - Trade and other receivables 5.26 4.90 - Other current assets 0.94 0.46 - Property, plant and equipment 1.71 1.12 - Deferred tax assets 3.85 1.94 - Intangible assets 0.40 0.4