Pacific Edge Limited · NZX:PEB
Pacific Edge — Shareholder Meeting (August 2014)
37 slides from Pacific Edge's shareholder meeting presentation, Aug 21, 2014
Slide 1: Annual Meeting of Shareholders
PACIFIC EDGE ANNUAL MEETING OF SHAREHOLDERS 21 August 2014
Slide 2: Board of Directors
BOARD OF DIRECTORS u Chris Swann, Chairman (Independent) u Colin Dawson (Independent) u David Band (Independent) u Anatole Masfen (Non-Independent) u Bryan Williams (Independent) 2
Slide 3: Meeting Agenda
MEETING AGENDA u Presentations: u Address from the Chair, Chris Swann u Address from the Chief Executive Officer, David Darling u Shareholder Discussion u Resolutions as per Notice of Meeting u General Business u Close of Annual Meeting 3
Slide 4: Resolutions and Voting
RESOLUTIONS AND VOTING u Re-election of Christopher Swann as a Director of the Company u Re-election of David Band as a Director of the Company u Election of David Darling as an Executive Director of the Company u Record the reappointment of PricewaterhouseCoopers as auditors of the Company and
Slide 5: Chairman's Address
CHAIRMAN’S ADDRESS Chris Swann JE to add picture 5
Slide 6: Our Growth Strategy
OUR GROWTH STRATEGY u Our Strategy: To develop and commercialise novel diagnostic tests with superior performance for the early detection and management of cancer 6
Slide 7: FY14 Financial Performance
FY14 FINANCIAL PERFORMANCE Trading Revenue $523,000, up 187% u Generated first real trading revenue from Total Revenue sales in the US $838,000, up 62.7% u Investment into Growth: Total Comprehensive Loss $9.4 million, an increase of 35% u Set up and rollout of Pacific Edge’s Global Employees pre
Slide 8: Funding for Growth
FUNDING FOR GROWTH u Successful $20 million capital raising completed in October 2013 u Callaghan Innovation Growth Grant of up to $4.5 million, spread over three years, with an additional two years available upon review u As at 31 March 2014, cash and equivalents of $20.4 million and no debt u
Slide 9: Balancing Risk and Growth
BALANCING RISK AND GROWTH While the Board is focused on managing risk, we also need to have the courage to continue our investment so we can achieve our vision of being a world leading cancer molecular diagnostics company. 9
Slide 10: Looking Forward
LOOKING FORWARD u Focus on American healthcare market u Building acceptance and sales of Cxbladder u Development of new bladder cancer diagnostic tests u Launch Cxbladder-triage in late 2014 u Expect revenue to grow as we expand our footprint in the US u Target gross revenues of over NZ$100 mi
Slide 11: Chief Executive Officer
CHIEF EXECUTIVE OFFICER David Darling 11
Slide 12: Cxbladder products
Cxbladder products u Cxbladder-detect: A novel, non- invasive, accurate urine test for the detection of bladder cancer u Commercially available in New Zealand, Australia and the USA u Launching Cxbladder-triage later this year 12
Slide 13: The US Opportunity
THE US OPPORTUNITY OUR COMMERCIAL OPERATIONS FOR CXBLADDER United States + Population: 327 million + Patients with haematuria: approx. 4 million per year + Approx. Urologists: 10,500 + Potential Cxbladder test market: 2 million tests per year + Commercially available since July 2013 Spain Population
Slide 14: The US Opportunity
THE US OPPORTUNITY Number of people presenting with haematuria Number of potential tests every year? (blood in the urine) every year 2 MILLION 1 MILLION 300,000 200,000 | | UNITED STATES | | SPAIN AUSTRALIA & NEW ZEALAND 2 0’Sullivan et al: A multigene urine test for the detection and stratification
Slide 15: FY14 Key Events and Highlights
FY14 KEY EVENTS AND HIGHLIGHTS u Commercial launch of Cxbladder in the United States including recruitment of four specialist sales people in four high volume sales regions u First commercial sale of Cxbladder in the US u Continuation of successful User Programmes with selected urologists in New
Slide 16: FY14 Key Events and Highlights (cont)
FY14 KEY EVENTS AND HIGHLIGHTS cont u Significant gains made in adoption of Cxbladder by public and private funded healthcare organisations and agencies in New Zealand u CLIA certification for Pacific Edge’s Hershey and Dunedin laboratories u CAP accreditation for Hershey Laboratory u Completion
Slide 17: Events Since FY14 Year End
EVENTS SINCE FY14 YEAR END u US sales team has grown to eight targeting 19 sales regions containing 60% of the market u Recruitment of an additional four specialist sales executives planned this year u Signed National Provider Network with MultiPlan in the US u Approximately 900,000 providers pa
Slide 18: Building Our US Business
BUILDING OUR US BUSINESS MILESTONES ON OUR JOURNEY TO SUCCESS 2008 Published the initial bladder cancer detection research 2009 Produced a pre-commercial prototype of Cxbladder 2011 Completed the clinical evaluation of Cxbladder Completed the commercial laboratory in Dunedin, which was opened by the
Slide 19: Pacific Edge Sales Model
PACIFIC EDGE SALES MODEL Awareness of Clinical Efficacy Publication of peer reviewed science papers u User Programmes are the most effective Peer to Peer Interaction way to generate sales Key Opinion Leader (KOL) to Peer recommendation Business to Business validation u Allows targeted urologists t
Slide 20: The US Healthcare System
THE US HEALTHCARE SYSTEM Patient Care Reimbursement Process National Patients Pacific Edge Payers Provider Patient with Sends invoice to Pacific Edge has Networks haematuria seeks patient’s insurance Large private Pacific Edge negotiated Most clinicians healthcare treatment company/payer for insuran
Slide 21: Timeline: Development of US Sales
TIMELINE: DEVELOPMENT OF US SALES u National Provider Networks can provide millions of patients with access to Cxbladder u However, it can take a number of months from the signing of agreements for commercial tests to flow through and for reimbursement to be received 21
Slide 22: Our Other Markets
OUR OTHER MARKETS u New Zealand u Australia: Partnership u Investigating new with Healthscope market u Pacific Edge laboratory in Dunedin u Spain: Partnership with opportunities Oryzon u Head office in Dunedin u US: Fully owned US u All R&D conducted in subsidiary and laboratory Dunedin 22
Slide 23: Innovation: Ecommerce Sales
INNOVATION: ECOMMERCE SALES u Launch of ecommerce platform in July 2014 in New Zealand u Allows patients to collect a urine sample in their own home, without the need to visit their doctor or specialist u Test sent to Pacific Edge laboratory for analysis u Detailed test report is sent directly t
Slide 24: The Opportunity for Cxbladder
THE OPPORTUNITY FOR CXBLADDER THE GENERIC CLINICAL PATHWAY FOR THE DETECTION u Up to 2 million test opportunities for Cxbladder each year in US u Developing new Triage product OF BLADDER CANCER to rule out patients who do not require a referral for a full urological workup u Growing brand and pro
Slide 25: FY15 Objectives and Focus
FY15 OBJECTIVES AND FOCUS Primary Focus: Strengthen our footprint in the US market and ramp up our revenue Six Key Activities for FY15 1. Expand our sales presence in the United States and drive ambitious revenue targets 2. Continue to rollout our User Programmes to targeted clinical groups and urol
Slide 26: FY15 Objectives and Focus cont
FY15 OBJECTIVES AND FOCUS cont Primary Focus: Strengthen our footprint in the US market and ramp up our revenue Six Key Activities for FY15 cont 4. Focus on developing new bladder cancer products where we have identified an opportunity 5. Successfully launching Cxbladder-triage in New Zealand as a p
Slide 27: Shareholder Discussion
SHAREHOLDER DISCUSSION
Slide 28: Business of the Meeting
BUSINESS OF THE MEETING
Slide 29: Total Valid Votes
TOTAL VALID VOTES Total valid votes received as a percentage of Issued Capital 33.18% (105,726,049) 29
Slide 30: Re-election of Christopher Swann
RESOLUTION RE-ELECTION OF CHRISTOPHER SWANN That Christopher Swann, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company PROXIES For 95.05% Against 4.37% Open 0.58% 30
Slide 31: Re-election of David Band
RESOLUTION RE-ELECTION OF DAVID BAND That David Band, who retires by rotation and is eligible for re- election, be re-elected as a Director of the Company PROXIES For 96.61% Against 2.79% Open 0.59% 31
Slide 32: Election of David Darling
RESOLUTION ELECTION OF DAVID DARLING That David Darling be elected as an Executive Director of the Company PROXIES For 99.24% Against 0.16% Open 0.60% 32
Slide 33: Auditors
RESOLUTION AUDITORS To record the reappointment of PricewaterhouseCoopers as auditors of the Company and to authorise the Directors to fix the auditors’ remuneration PROXIES For 99.28% Against 0.12% Open 0.59% 33
Slide 34: Increase in Directors' Fees
RESOLUTION INCREASE IN DIRECTORS’ FEES To approve an increase in the total aggregate amount of Directors’ Fees payable per annum by $26,000 to $198,000. PROXIES For 75.03% Against 24.35% Open 0.63% 34
Slide 35: Other Business
OTHER BUSINESS
Slide 36: Close of Meeting
CLOSE OF MEETING Presentations are available on the investor page of the Company’s website at www.pacificedgedx.com
Slide 37: Disclaimer
DISCLAIMER u The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to the performance of Pacific Edge Limited. u The information in this presentation