Slide 1: Bactiguard Infection Protection Q2 presentation
Bactiguard Infection Protection Q2 presentation 8 August 2019
Slide 2: Financial highlights
Financial highlights An eventful quarter, yet earnings were weaker than last year • Q2 revenues of MSEK 34.1 (52.4) – decrease due to substantially higher revenues (MSEK 15.8) in 2018 related to the agreement with Well Lead for China • BIP sales of MSEK 3.2 (14.9) – no deliveries to China yet this y
Slide 3: Recent media coverage
Recent media coverage If antibiotics stop working Attack of the superbugs: July 2041 How the world belatedly responded to antimicrobial resistance. An imagined scenario from 2041 W W Global kris vantar: "Var tids stérsta halsoutmaning” | SvD En lika stor 6desfraga som klimatet. | Sverige dor cirka 1
Slide 4: Recent media coverage
Recent media coverage Doubling of MRSA cases in Sweden 4
Slide 5: Operational highlights
Operational highlights An eventful quarter • Increased market coverage and developing in-market growth Canada Switzerland Primary focus on in-market growth in China, India and Germany Adding 1-2 major European markets • Targeting elderly and home care, recent publication of new clinical case
Slide 6: Market update
Market update Europe • Upscaling activities in Germany and targeting homecare Canada • New partnership for Switzerland • New partnership • Smaller markets contribute to recurring sales • Preparing MDSAP registration MEA China • 2018 an interim year • Expanding sales team, regular training • Growth a
Slide 7: Licensing business
Licensing business BD (C.R. Bard) • Successful partnership since 1995 • Bactiguard coated Foley catheters for the US, Japan and UK/Ireland • Generating stable annual revenues Vigilenz Medical Devices • Bactiguard coated orthopaedic trauma implants for the ASEAN markets • CE mark awarded in December
Slide 8: Development project for vascular stents
Development project for vascular stents • To reduce the risk of thrombosis in connection with interventions in Stents save lives the bloodstream • Stents are used when blood vessels in the heart or • Project led by Professor Staffan Holmin and his research group at the nervous system need to be wide
Slide 9: Potential new applications for licensing or BIP portfolio
Potential new applications for licensing or BIP portfolio Global sales MUSD Orthopedic implants 22 700 Trauma implants 5 600 Coronary stents 5 400 Dental implants 4 500 BIP portfolio Foley CVC ETT 1 800 s Intermittent Urinary 1 500 PIVC 1 400 1 100 Vascular Grafts Ureteral stents 300 Hemodialysis 20
Slide 10: Continuously strengthening clinical evidence
Continuously strengthening clinical evidence On-going clinical studies SWEDEN • REHAB, BIP Foley, long-term patients • IMPROVE, BIP CVC, ~150 patients • New application BG coated stents endovascular use EUROPE • VITAL, Belgium BIP ETT/Evac in ICU (300 patients) • Martini Klinik, Germany, BIP Foley C
Slide 11: Board members
Board members Jan Ståhlberg Mia Arnhult Christian Kinch Prof Anna Martling Thomas von Koch Chairman CEO Major shareholder CEO of Trill Impact AB CEO and Board member of Major shareholder Dean Campus North, Deputy MD in EQT Board member of M2 Asset Management Board member in Swecare Karolinska Instit
Slide 12: Bactiguard Executive Management
Bactiguard Executive Management Christian Kinch Cecilia Edström Chief Medical and CEO CFO and Deputy CEO Technology Officer Jonas Östregård Daniel Lund Senior Vice President Senior Vice President Sales & Marketing Operations 12
Slide 13: Business model
Business model Two lines of business License agreements for various applications with Bactiguard technology – generating up-front fees and royalties Proprietary product portfolio – sold through distributors a 13
Slide 14: Financial highlights
Financial highlights Highlights Second quarter (April-June 2019) • Revenues of MSEK 34.1 (52.4). Second quarter last year contained revenues of MSEK 15.8 related to the agreement with Well Lead for China. • License revenue from BD higher than last year MSEK 27.7 (24.9) • New license revenues of MSEK
Slide 15: Development in revenues from BIP products
Development in revenues from BIP products Supplied products • Revenues from BIP-products of MSEK 3.2 (14.9) in Q2 • Development in BIP sales still somewhat irregular • Major deliveries to China in 2018 not yet been repeated in 2019 15
Slide 16: Revenue distribution
Revenue distribution Income distribution 16
Slide 17: Cash flow and liquidity
Cash flow and liquidity Cash flow first half (January - June) 2019 • Operating cash flow of MSEK -9.6 (-4.0) • Payment of MSEK -11.5 one-off compensation for China has affected cash flow this year • Amortization of loan MSEK -7.5 end of June • Net Cash position of MSEK 1.6 (5.7) 17
Slide 18: Financial targets
Financial targets • Average sales growth of 20% per annum for a 5-year period, with 2015 as the base year – starting point MSEK 118.5 • EBITDA margin of at least 30% at the end of the 5-year period (by 2020) • Equity ratio of at least 30% • Over time uphold a dividend policy of 30-50% of net profit,
Slide 19: Growth strategy
Growth strategy Value Broaden portfolio • Develop new license applications Licensing • Expand BIP portfolio • 1-2 new deals per year • CE mark for trauma implants important reference BIP portfolio • Increase in-market penetration • Strengthen clinical evidence • Add new markets in EU Time 19
Slide 20: Concluding remarks
Concluding remarks An eventful quarter, paving the way for growth • Revenues and earnings lower in the quarter, but license revenues were stable and underlying BIP sales are growing • Adding 1-2 markets in Europe and focusing on in-market growth • Good traction in China • CE mark for trauma implants
Slide 21: Our Vision
Our Vision Eliminate healthcare associated infections to 1. save lives 2. reduce cost and 3. limit antimicrobial resistance, through preventive standards of care. 21
Slide 22: Bactiguard representatives
Bactiguard representatives Christian Kinch, CEO Switchboard +46 8 440 58 80 christian.kinch@bactiguard.se @ChristianKinch Cecilia Edström, CFO and deputy CEO Cell phone +46 72 226 23 28 cecilia.edstrom@bactiguard.se @EdstromCecilia 22