Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Elron Electronic Industries — Investor Presentation (November 2014)
31 slides from Elron Ventures's investor presentation, Nov 13, 2014
Slide 1: Discover. Innovation
DISCOVER. INNOVATION
Slide 2: Disclaimer
This presentation is for information purposes only. By this presentation, Elron does not intend to solicit offers to purchase its securities and the presentation does not constitute an invitation to receive such offers. Elron may make improvements and/or changes in the features or content presented
Slide 3: Elron. Seeking to change the face of healthcare
ELRON. SEEKING TO CHANGE THE FACE OF HEALTHCARE
Slide 4: $110m dividend distributed
§ $110m dividend distributed § Pocared estimates it will complete the FDA trial by the end of April 2015 § The American Academy of Ophthalmology recommends early detection of wet AMD using Notal Vision’s technology Results include RDC, except for profit which is attributable to Elron’s shareholders.
Slide 5: Portfolio of med-tech companies and holdings
MICROBIOLOGY POCARED 50% STROKE CARE BRAINSGATE 30% AMD NOTAL VISION 21% HEART FAILURE KYMA 29% ORTHOPEDICS CARTIHEAL 32% § ~$573m in exit proceeds since § ~$200m invested in med-tech companies in recent years § 1-9/2014 profit: ~$94m § Cash balance of $166m following the $110m dividend distributed
Slide 6: Elron. Results
ELRON. RESULTS
Slide 7: Value of exits since 2009
§ Value of exits since 2009: ~$1.4b § ~$573m in exit proceeds since June 2009 Oct. 2009 May 2010 June 2010 Sept. 2011 Nov. 2011 Nov. 2012 Feb. 2014
Slide 8: Cumulative profit since 2010
§ The cumulative profit since 2010: $174m
Slide 9: Cash flow, dividends and no debt
§ 1-9/2014: positive cash flow of ~$190m § $110m dividend distributed in § $15m dividend distributed in § No debt
Slide 10: Elron.
ELRON.
Slide 11: RDC: jointly held by Elron and Rafael
§ RDC: jointly held by Elron (50.1%) & Rafael (49.9%) § The Rafael-Elron agreement is exclusive and indefinite § The agreement is in effect as long as Elron maintains a holding in RDC § $75m invested by RDC in companies since 2009 § $235m in exit proceeds since § $163m in profits since 2009
Slide 12: The case of Given Imaging
§ Given Imaging was established in 1993 by RDC § RDC’s total investment in the company: $6.1m § Q1/14: the company’s acquisition by Covidien for $30 per share in cash § The consideration represents a $1b valuation § Our share in the consideration: Elron- $204m, RDC- $80m THE CASE OF GIVEN IMAGING
Slide 13: Elron. Promise
ELRON. PROMISE
Slide 14: BrainsGate: ischemic stroke treatment
Treatment of ischemic stroke in a 24 hour window post symptom onset Current treatment (tPA protein) is approved for use during a 3-4.5 hour window only BrainsGate’s treatment is based on electrical stimulation of the SPG (a nerve center behind the nasal cavity) using a miniature electrode The electr
Slide 15: BrainsGate clinical trial and stroke burden
In 2010 BrainsGate completed a clinical trial on 300 patients whose results strengthened the assessment that the treatment is effective and safe BrainsGate is conducting another clinical trial that is expected to support its planned PMA submission to the FDA The trial is being conducted at medical c
Slide 16: BrainsGate treatment versus tPA
Restores blood flow to the blocked blood vessel Due to the temporary interruption in blood flow, the blood vessel becomes brittle In addition, the treatment compromises coagulation The risk of hemorrhage just 3 hrs after stroke onset increases 10X Electrical stimulation induces dilation of cerebral
Slide 17: Pocared: infectious disease diagnosis system
Real-time and automated system for infectious disease diagnosis, based on optical technology Designed for use by major microbiological laboratories and hospitals Meant to replace bacteria culturing (the current diagnosis method) which is expensive, labor-intensive, & time- consuming The system’s fir
Slide 18: Pocared FDA trial and market
The system is CE certified since December 2011 Pocared is conducting a trial to test the efficacy of the system's 1 st application, UTI diagnosis The trial is expected to support Pocared’s planned FDA submission The trial is being conducted at 4 of the world's leading medical centers, and is expecte
Slide 19: Elron. Innovation: Pocared
ELRON. INNOVATION POCARED FROM 48 HRS TO 48 MIN itil HI r ‘ acomplete cartridge transfercarousel to urine sample cartridge carousel optical analyzermodule || —
Slide 20: Notal Vision: remote AMD monitoring
Remote monitoring of patients at risk of vision loss from AMD AMD destroys sharp, central vision, necessary for common tasks such as facial recognition, driving, reading, & watching television There are 2 types of AMD, dry (non-neovascular) and wet (neovascular); about 90% of blindness is associated
Slide 21: Notal Vision ForeseeHome marketing and CPT code
Notal Vision began marketing the ForeseeHome in the U.S. The ForeseeHome was granted a CPT code, effective 2015 The American Academy of Ophthalmology (AAO) adopted a recommendation in its clinical guidelines for early detection of wet AMD using Notal Vision’s technology 1,000,000 tests have been rec
Slide 22: Notal Vision device and data monitoring
Notal Vision website: http://www.notalvision.com/ The device detects even small changes in vision The Data Monitoring Center alerts patient & doctor
Slide 23: CartiHeal: cartilage repair implant
Implant for repairing cartilage and osteochondral defects in loadbearing joints, such as the knee The implant has a unique structure , comprising of marine aragonite with biological modifications The implant biodegrades in the implantation site, and promotes the regeneration of native (hyaline) cart
Slide 24: CartiHeal CE certification and clinical trials
The implant is CE certified since April 2011 Preclinical studies demonstrated cartilage & bone regeneration at the implantation site A series of clinical trials are underway at well-known medical centers in Europe to test the implant’s safety and efficacy Preliminary results have demonstrated a redu
Slide 25: Post-op results
1 day post-op: 6 months post-op:
Slide 26: Kyma: remote monitoring of CHF
A system for continuous remote monitoring of CHF patients The system is built around a non-invasive and very small sensor attached to the patient Based on unique radar technology (RFIC) that enables direct & precise measurement of fluid in the lungs The device is intended to enable early treatment o
Slide 27: Kyma CE certification, trials and FDA submission
The device is CE certified for hospital use since October 2013 The company is conducting a series of clinical trials in diverse treatment settings (ICUs, CHF units, nursing homes, & others) The purpose is to analyze the costs involved in treating these patients with and without Kyma’s device The tri
Slide 28: Holdings in companies and market value
Holdings in companies 1 Book value at Sep. 30, 2014 ($m) Amount invested ($m) Associates and consolidated companies: Pocared 3.7 37.4 BrainsGate (0.5) 21.2 Others 9.0 18.3 Companies presented at fair value: Notal Vision 13.8 8.5 Jordan Valley 10.4 8.1 Others 4.3 18.6 Total Holdings 40.7 112.1 Financ
Slide 29: Elron investment highlights
Proven expertise in identifying opportunities, building technology leaders, and exiting holdings Operational holding company with the flexibility to provide its group companies with long-term commitment Strategic partnership with Rafael - access to state-of-the- art military technologies, and exclus
Slide 30: Quote from Elron's founder
Looking ahead, Elron should always understand that the ever evolving changes in the high tech industry will be exponential, and therefore, success will depend on choosing the right niches in the world market in which it can maintain and improve its relative advantage. Mr. Uzia Galil, Elron’s founder
Slide 31: Elron. Opportunity. Thank you.
ELRON. OPPORTUNITY Thank you.
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