Arcticzymes Technologies Asa · OSL:AZT
Arcticzymes Technologies Asa — Biotec Pharmacon — Q1 2015 Earnings Presentation
26 slides from Arcticzymes Technologies Asa's earnings presentation, May 5, 2015
Slide 1: First Quarter 2015
First Quarter 2015 5th May 2015 Svein W. F. Lien – CEO Børge Sørvoll - CFO
Slide 2: Agenda
Agenda Highlights Q1 financials Beta-Glucans – advanced wound care Enzymes – molecular testing Outlook 2
Slide 3: Highlights Q1 2015
Highlights Q1 2015 • Evaluation study for Woulgan® in Germany and UK completed at the end of first quarter 2015, according to the revised plan • Group revenues amounted to NOK 12.3 million in the first quarter compared to NOK 4.1 million in the first quarter 2014 • Positive development in ArcticZyme
Slide 4: Financials
Financials Highlights Q1 financials Beta-Glucans – advanced wound care Enzymes – molecular testing Outlook 4
Slide 5: Financial highlights Q1
Financial highlights Q1 NOK million Q1 2015 Q1 2014 2014 Enzymes 7.6 3.2 16.3 Beta-Glucans 4.7 0.9 16.8 Sales revenues 12.3 4.1 33.0 Enzymes 2.0 -1.5 -3.8 Beta-Glucans -4.7 -5.6 -17.4 EBITDA -2.8 -7.1 -21.2 Profit before tax -3.2 -7.6 -22.0 * The segment figures reflect that all costs are allocated
Slide 6: Cash flow and cash position Q1
Cash flow and cash position Q1 NOK million Q1 2015 Q1 2014 2014 Operating activities -9.2 -10.6 -21.2 Investing activities 0 -1.9 -1.9 Financing activities 0 0.7 77.7 Changes in cash and cash equivalents -9.2 -11.9 54.6 Cash and cash equivalents at the beginning 88.3 33.6 33.7 of period Cash and cas
Slide 7: Biotec BetaGlucans
Biotec BetaGlucans Highlights Q1 financials Beta-Glucans – advanced wound care Enzymes – molecular testing Outlook 7
Slide 8: Biotec BetaGlucans (segment numbers)
Biotec BetaGlucans (segment numbers) NOK million Q1 2015 Q1 2014 2014 Sales Revenue 4.7 0.9 16.8 Gross profit 2.2 0.4 6.7 Other income 0.5 0 1.6 Personnel expenses -3.9 -3.7 -15.2 Operating expenses -3.5 -2.3 -10.5 EBITDA -4.7 -5.6 -17.4 Depreciation & Amortization -0.4 -0.4 -1.5 EBIT -5.2 -6.0 -18.
Slide 9: Advanced wound healing: broad indication - large market opportunity
Advanced wound healing Broad indication - large market opportunity • The European market counts Europe: 9 million wounds annually ~9 million wounds in the initial indication areas Burns Diabetic ulcers, leg ulcers, 11 % pressure ulcers, burns Pressure • Approved also for other major ulcers 56 % Diab
Slide 10: Smith & Nephew evaluation study
Smith & Nephew evaluation study • The market evaluation study carried out by Smith & Nephew was finalized by the end of Q1 • A total of 12 (reporting) sites in UK and Germany participated in the study focusing on management of diabetic foot ulcer (DFU) and venous leg ulcers (VLU) • In total 150 pati
Slide 11: Smith & Nephew evaluation study results
Smith & Nephew evaluation study results • Preliminary results from 25% of the trial participants the finalized study released to the Company are encouraging • The data shows suggests that patients experienced improved healing during the treatment period as well as less pain and improved comfort comp
Slide 12: Strategic opportunities
Strategic opportunities • Woulgan® is an approved product with favorable user feedback and good documentation. • It’s an unique product representing a substantial opportunity, but has little support from existing non-active products in the market • There are only a few global but a large number of r
Slide 13: Work with KOL's are crucial to success
Work with KOL’s are crucial to success Market Segments: Need to work with the individual KOL’s in each hospital region to Hospitals and Wound convince them about the cost benefit of the Woulgan product. This is Clinics purely “PULL” marketing Home Nursing This will make the road to the main market w
Slide 14: Doing is learning: Woulgan - status Norway
Doing is learning: Woulgan® - status Norway • About 85% of Health Care Processionals participating in the Norwegian study said they wanted to continue to use Woulgan® • Participated in the NIFS conference in February and got an overwhelming positive response • In Norway, most professional users that
Slide 15: Actions going forward
Actions going forward: • Spend the time needed to give the largest alternatives the opportunity to run their internal process. They will always need most time • In parallel work with regional alternatives • If a large alternative are favorable compared with what we believe we can obtain with regiona
Slide 16: Other areas Woulgan
Other areas Woulgan®: US: • Started to explore the strategy for the US market in more detail • Reimbursement is key for success in the US • Product positioning strategy being developed • This work is also strengthening our partner profile Health Economics: • Building the documentation for DFU based
Slide 17: Animal Health and Nutrition
Animal Health and Nutrition: • Pursuing additional opportunities in the Animal Health sector • Working on clarifying the strategic options for the Nutrition market for decision later this year. Exclusivity is expiring January 2016 • Have secured trademarks to be used in potential commercial attempts
Slide 18: Enzymes
Highlights Q1 financials Beta-Glucans – advanced wound care Enzymes – molecular testing Outlook 18
Slide 19: Enzymes (segment numbers)
Enzymes (segment numbers) NOK million Q1 2015 Q1 2014 2014 Sales Revenue 7.6 3.2 16.3 Gross profit 7.4 2.9 15.3 Other income 1.3 1.2 4.0 Personnel expenses -4.4 -3.7 -13.9 Other Operating expenses -2.3 -1.9 -9.3 EBITDA 2.0 -1.5 -3.8 Depreciation & Amortization -0.2 -0.2 -1.0 EBIT 1.7 -1.7 -4.8 * The
Slide 20: ArcticZymes highlights Q1 2015
ArcticZymes highlights Q1 2015 • ArcticZymes continues to broaden its base of OEM customers in the kits and reagents market segments • Three top products; rSAP, Cod UNG, and the DNase product portfolio (stand-alone enzymes and finished kits) continue to drive the sales figures • ArcticZymes’ B2B str
Slide 21: New Business & Developing the Pipeline
New Business & Developing the Pipeline • During the quarter, ArcticZymes has focused on developing a rich pipeline of B2B customer prospects with existing and new customers as part of it strategy to grow new business – Numerous new customer relationships have been forged with interest in exploring A
Slide 22: Utility of ArcticZymes Products in Adjacent Segments
Utility of ArcticZymes Products in Adjacent Seqments • ArcticZymes products are integrated in DNA sequencing, PCR, diagnostic and genomic DNA sample preparation technologies by our OEM customers • ArcticZymes did initiate discussions with potential customers to broaden the integration of our existin
Slide 23: Scalable model for partnering
Scalable model for partnering • A number of R&D projects for new enzymes and applications through the Norwegian Research Council founded projects “MarFunk” and “NextZyme • ArcticZymes aims to expand the product portfolio including more partner oriented projects • Quality standard is key: – ISO 9001
Slide 24: Outlook
Highlights Q1 financials Beta-Glucans – advanced wound care Enzymes – molecular testing Outlook 24
Slide 25: Outlook
Outlook • The primary focus of Biotec currently is to enter into agreement(s) which will best possibly secure the full commercial potential of Woulgan® • Biotec is working with Smith & Nephew to clarify the basis for a long term relationship while in parallel working with alternative partners • New
Slide 26: Q&A
Q&A Svein W. F. Lien Mob: +4792289323 Email: sl@biotec.no www.biotec.no 26