Baird Medical Investment Holdings Ltd · NASDAQ:BDMD
Baird Medical Investment — SPAC Merger (December 2023)
33 slides from Baird Medical Investment's SPAC merger presentation, Dec 12, 2023
Slide 1: Minimally Invasive Medical Technology for Tumor Removal
Minimally Invasive Medical Technology for Tumor Removal INVESTOR PRESENTATION DECEMBER 2023 Traditional Method Baird Medical Method
Slide 2: Disclaimer
Baird Medical This presentation (together with oral statements made in connection herewith, this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Business Combination”) between Excel
Slide 3: No Offer or Solicitation
Baird Medical No Offer or Solicitation . This Presentation and the information contained herein do not constitute (i) (a) a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed Business Combination or (b) an offer to sell or the solicitation
Slide 4: Trademarks
Baird Medical Trademarks . ExcelFin and Baird Medical own or have rights to various trademarks, service marks and trade names that they use in connection with the operation of their respective businesses . This Presentation may also contain trademarks, service marks, trade names and copyrights of ot
Slide 5: Investment Highlights
Baird Medical Market Leadership With High Barriers to Entry Strong Business Model with Significant Recurring Revenue and Strong Profitability Safe and Proven Technology Applied to New Indications Large Total Addressable Market of $4 – $10 Billion 1 Robust and Visible Revenue Growth with Tangible Ups
Slide 6: Baird Medical At-A-Glance
Baird Medical Baird Medical At - A - Glance 6 R&D CAPABILITIES Note: 1. These projections are based on a number of assumptions, and actual results may vary significantly from our expectations. See Dis claimer – “Projections” 2. According to Frost & Sullivan Report as of June 2023. Based on sales rev
Slide 7: Ultrasound Guided MWA: A Preferred, Minimal Invasive Treatment
Baird Medical Ultrasound Guided MWA: A Preferred, Minimal Invasive Treatment 7 1. Beijing Time Strategy Management Consulting - Commercial Due Diligence Report of Betters Medical Investment Holding Co., Ltd. as of May 2023. 2. According to Frost & Sullivan Report as of June 2023 Baird developed MWA
Slide 8: Growing & Untapped Market Opportunity – Thyroid Nodules Only
Baird Medical 8 13 – 28 Million 5% - 10% – Thyroid Nodules Larger than 2cm Requiring Treatment / Intervention 2 258 – 282 Million 84% – 92% Benign Rate 2 307 Million Total Thyroid Nodules Patients Population Based on 22% Incidence Rate 1 6 – 14 Million 70% – Using Microwave Ablation 2 9 – 20 Million
Slide 9: Thyroid nodules overtaking liver cancer as largest MWA segment market in China
Baird Medical 181 586 63 29 10 236 637 75 36 12 306 688 102 46 13 397 739 122 58 15 505 764 162 72 17 762 828 208 95 20 936 936 241 110 26 1,223 1,087 340 143 31 1,584 1,284 471 180 36 2,016 1,433 584 223 45 2,566 1,513 790 276 50 3,237 1,619 971 340 57 Thyroid nodules are overtaking liver cancer to
Slide 10: Single-Use MWA Needles: Significant Recurring Revenue and Strong Profitability
Baird Medical Single - Use MWA Needles Significant Recurring Revenue and Strong Profitability 10 MWA Therapeutic Apparatus 1,019 Units High revenue visibility due to the exclusive use of consumables mandated by regulations for our apparatus Note: MWA stands for Microwave Ablation 87% 2022 Gross Marg
Slide 11: Baird Medical's China Management Team Drives Local Market Excellence
Baird Medical Baird Medical’s China Management Team Drives Local Market Excellence 11 HAIMEI WU, MD Co - Founder, ED, Chairwoman of the Board and CEO • Over 20 years of experience in the medical devices industry , including working as a key distributor for Mindray, Johnson & Johnson and Abbott Labor
Slide 12: Cultivating Market Adoption, Penetration and Expansion
Baird Medical Cultivating Market Adoption, Penetration and Expansion 12 MEDICAL CONFERENCES DOCTORS EXCHANGE POINT - TO - POINT CONNECTIONS
Slide 13: Early and Successful Penetration of A Large Market
Baird Medical Early and Successful Penetration of A Large Market 13 431 Hospitals purchasing our products in 2022, growing from 252 hospitals in 2019 256 Grade III hospitals in China penetrated 21 Provinces, municipalities, and autonomous regions in China REGIONS UNDER SALES COVERAGE CURRENTLY
Slide 14: Esteemed and Renowned Client Base
Baird Medical Esteemed and Renowned Client Base 14 No. 27 Sun Yat - Sen University Cancer Center Peking University First Hospital No. 12 West China Medical School, West China Hospital, Sichuan University No. 2 No. 31 The First Affiliated Hospital of Guangzhou Medical University Nanfang Hospital Sout
Slide 15: Three-Tiered Growth Strategy
Baird Medical 31 51 59 68 2019 2020 2021 2022 29 43 37 42 2019 2020 2021 2022 72 61 58 111 2019 2020 2021 2022 NUMBER OF HOSPITALS PENETRATED IN GUANGDONG NUMBER OF HOSPITALS PENETRATED IN SHANGHAI / FUJIAN / JIANGXI Three - Tiered Growth Strategy 15 NUMBER OF HOSPITALS PENETRATED IN SICHUAN x Focus
Slide 16: Three-Tiered Growth Strategy (cont'd)
Baird Medical 57 50 52 86 2019 2020 2021 2022 63 69 98 124 2019 2020 2021 2022 Three - Tiered Growth Strategy (cont’d) 16 Tier 2 Provinces: Anhui, Hunan, Heilongjiang, Jilin, Liaoning, Hubei, Shandong, Guangxi, and Beijing Tier 3 Provinces: Jiangsu, Henan, Shaanxi, Shanxi, Chongqing, Yunnan, Guizhou
Slide 17: Financial Summary
Baird Medical $27.5 $35.2 $44.5 $62.5 2021 2022 2023E 2024E $17.2 $19.5 $25.3 $36.6 2021 2022 2023E 2024E 304 431 527 660 2021 2022 2023E 2024E Financial Summary 17 HOSPITALS USING BAIRD MEDICAL’S PRODUCTS REVENUE ($M) ADJUSTED EBITDA ($M) Note: 1. These projections are based on a number of assumpti
Slide 18: Medium to Long-Term Global Growth Strategy
Baird Medical 18 Medium to Long - Term Global Growth Strategy Becoming a public company in the US is a pivotal component of the company's strategy, positioning it for expansion into the US, EU, and Southeast Asia in the coming years Secure FDA Approval for Soft Tissue Microwave Ablation • Received F
Slide 19: Ideal Timing for Baird to Enter the US Market
Baird Medical 19 Ideal Timing for Baird to Enter the US Market MWA products for thyroid nodules with rich clinical experience from 99,231 procedures with 684 doctors in PRC US physicians starting to accept MWA for thyroid nodules treatment. Johns Hopkins, Sanford, Tulane recently have conducted clin
Slide 20: American Thyroid Association Conference 2023 Summary and Highlights
Baird Medical American Thyroid Association Conference 2023 Summary and Highlights 20 Result from 620 patients & trials: • 3 months – 53% achieved > 50% VRR • 6 months – 71% • 12 months – 78% ▪ Hopkins 77% ▪ Tulane 79% ▪ Stanford 77% General principles for the safe performance, training and adoption
Slide 21: Clear Action Plan Post American Thyroid Association Conference
Baird Medical Clear Action Plan Post American Thyroid Association Conference 21 Inviting leading KOL doctors to train in China in Q1 2024 Participating NASIT ablation training lab in February 2024 In discussion regarding product adoption • Participating Johns Hopkins Hospital cadaver lab in December
Slide 22: Potential Growth Plan with the Entry into New Markets
Baird Medical 22 2023 2024 2025 2026 2027 2028 2029 2030 Potential Growth Plan with the Entry into New Markets Expected CFDA Class III Certificate for Breast Lumps and Pulmonary Nodules Received FDA 510k Clearance The graph above is provided to show the potential growth that may occur following the
Slide 23: Operational Benchmarking
Baird Medical 56.8% 27.9% 28.8% 26.0% 5.0% 28.9% 23.9% 17.7% 25.5% (20.6%) 15.6% 58.5% 27.7% 29.6% 26.6% 5.1% 28.6% 25.3% 19.5% 26.1% (1.7%) 21.2% 26.4% 11.1% 9.8% 8.5% 7.0% 1.3% (0.5%) (2.0%) (9.4%) 20.4% 14.0% 40.3% 14.5% 8.1% 7.3% 4.8% 4.4% 5.6% 3.6% 4.2% 34.1% 14.3% Operational Benchmarking REVE
Slide 24: Valuation Benchmarking
Baird Medical 14.6x 8.7x 22.0x 24.3x 26.6x 15.1x 17.3x 9.5x 19.4x NM 18.4x 10.1x 7.6x 19.8x 22.2x 24.7x 14.6x 15.5x 8.3x 18.1x NM 11.8x 0.39x 0.75x 1.91x 2.55x NM NM 2.45x 0.80x NM NM 0.32x 0.27x 0.66x 1.72x 2.33x NM NM 2.19x 0.70x NM NM 0.21x Valuation Benchmarking 2023 Multiples 2024 Multiples EV
Slide 25: Transaction Summary
Baird Medical Betters Medical Shareholders SPAC Investors Sponsor Shares 6.8% 12.1% 81.1% Transaction Summary 25 SOURCES & USES KEY HIGHLIGHTS Pro Forma Capitalization PF Share Outstanding (M) 36.3 Share Price at Merger ($) $10.20 Pro Forma Equity Value ($M) $370 (+) Existing Net Debt ($M) $10 ( - )
Slide 26: Appendix
APPENDIX
Slide 27: Large Addressable Market
Baird Medical • 307 million patients with diagnosed thyroid nodules in China • 22% incidence rate for thyroid nodules, which could lead to thyroid cancer if left untreated 1 • Result of endocrine imbalances / disorder • Caused by increasing stress, anxiety, consumption of processed foods, obesity, a
Slide 28: MWA Procedure
Baird Medical MWA Procedure Step 1 Administer anesthesia, inject isolation fluid to delineate the target area, and create a small incision to facilitate the penetration of the MWA needle Step 2 Under the guidance of ultrasound scan, inserts the MWA needle into the tumor and maneuvers it around for a
Slide 29: Strong R&D Capabilities
Baird Medical 38 Registered Patents • 38 patents under application. Obtained registration certificates for both Class II and III medical devices 29 INNOVATION, COLLABORATION, AND RECOGNITION EXPERIENCED IN - HOUSE R&D TEAM Strong R&D Capabilities Mr. Rongjian Lu and Mr. Hailong Sun Co - Chief Techni
Slide 30: Risk Factors
Baird Medical Risk Factors 30 The summary of risk factors provided below should be carefully considered in conjunction with the risks and uncertainties des cri bed in the “Risk Factors” section of the Registration Statement ( Registration No. 333 - 274114) filed by Baird Medical Investment Holdings
Slide 31: Risk Factors (cont'd)
Baird Medical Risk Factors (cont’d) 31 Risks Related to Doing Business in China • Medical device manufacturers in China are subject to extensive safety regulations and requirements, which can lead to increas ed compliance costs and heightened risks of inadvertent incidents of noncompliance. Baird Me
Slide 32: Risk Factors (cont'd)
Baird Medical Risk Factors (cont’d) 32 Risks Relating to ExcelFin, PubCo and the Business Combination • If ExcelFin does not consummate the Business Combination by the termination date of April 25, 2024, ExcelFin will have to cea se all operations except to wind up, redeem all of its public shares a
Slide 33: Risk Factors (cont'd)
Baird Medical Risk Factors (cont’d) 33 • The benefits of the potential Business Combination may not be realized to the extent currently anticipated by ExcelFin and Ba ird Medical, or at all. If the Business Combination’s benefits do not meet expectations of investors, stockholders or analysts, the m
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