Bonesupport Holding Ab · OMXSTO:BONEX
Bonesupport Holding Ab — Q3 2017 Earnings Presentation
27 slides from Bonesupport Holding Ab's earnings presentation, Nov 2, 2017
Slide 1: Q3 Conference Call Presentation
Q3 Conference Call Presentation 2 November 2017
Slide 2: Presenting Team
Presenting Team RICHARD DAVIES BJÖRN WESTBERG CEO CFO 2
Slide 3: Disclaimer
Disclaimer This presentation, which includes all information and data on the following slides, any oral statements made when presenting these slides, and any other material distributed or statements made at, or in connection with, such presentation (the “Presentation”), relates to BONESUPPORT HOLDIN
Slide 4: Innovative, rapidly growing orthobiologics company
Innovative, rapidly growing orthobiologics company BONESUPPORT – an innovative company focused on developing and commercializing products for the management of bone voids • Fast growing business • Commercializing 3 synthetic bone grafts - clinically proven to remodel to host bone • CERAMENT G and V
Slide 5: Q3 Highlights
Q3 Highlights • Solid sales growth – 23% increase in Q3 to SEK 32.7 million – 28% growth in EU and RoW – driven by antibiotic-eluting products – 21% growth North America – slower growth due to Zimmer Biomet hardware supply issues • Improved gross margins - increasing proportion of sales from higher
Slide 6: Experienced Recent Additions to the Leadership Team
Experienced Recent Additions to the Leadership Team HÅKAN BJÖRKLUND Chairman RICHARD DAVIES CEO December 2016 Joined January 2016 Nycomed Hospira PATRICK O’DONNELL BJÖRN WESTBERG MICHAEL DIEFENBECK DR JERRY CHANG Helena Brandt EVP Commercial US CFO Chief Medical Officer EVP R&D Head of Human Resourc
Slide 7: Bone void management – a sizeable growth market
Bone void management – a sizeable growth market Market Opportunity % US Procedures (2) Further growth for BONESUPPORT will be achieved by Current Gaining share of addressable • the synthetic bone market graft substitute % EU Procedures (2) market driven by EU-5 +US: ~ 650k our antibiotic eluting pro
Slide 8: Our proprietary CERAMENT platform
Our proprietary CERAMENT ® platform CERAMENT ® platform generates products that provide clear benefits to surgeons, patients and payors CERAMENT ® 60% calcium sulfate (CaS) 40% hydroxyapatite (HA) Remodels to host bone Predictable drug elution PRODUCT PIPELINE CERAMENT ® CERAMENT ® CERAMENT ® BVF G
Slide 9: CERAMENT products well positioned for growth
CERAMENT® products well positioned for growth • Unique composition remodels to bone in 6-12 months – all products • CERAMENT G and CERAMENT V’s ability to elute antibiotics is improving the way many orthopedic indications are managed - allowing them to rapidly gain market share • Industry-leading cl
Slide 10: Committed to implementing our strategy to deliver targets
Committed to implementing our strategy to deliver targets • Driving sales of currently approved products in existing markets – Generating further supportive clinical data to drive the adoption of our CERAMENT products for broader range of indications including trauma and revision arthroplasty – Gene
Slide 11: Our Commercial Activities
Our Commercial Activities 11
Slide 12: Growing CERAMENT BVF sales in the US
Growing CERAMENT™ BVF sales in the US Our commercial footprint Our activities • BONESUPPORT US Team drive • Sales growth negatively impacted by sales via Zimmer Biomet Zimmer Biomet hardware supply issues • 8 regional managers, • CERAMENT BVF used in • 3 product technical conjunction with Zimmer har
Slide 13: Growing CERAMENT G&V sales in Europe
Growing CERAMENT™ G&V sales in Europe Our commercial footprint Our activities • European commercial • Continue to focus on driving adoption at organization comprises the top trauma centers in our key 20 people including the European markets leadership team • Further important data presented at key •
Slide 14: Clinical update
} BONESUBPORT” Clinical update
Slide 15: Ongoing and Planned Clinical Studies
Ongoing and Planned Clinical Studies Larger Clinical Studies Initiated Regulatory REGULATORY STUDY Feasibility1/ study FPI1/ LPI1/ Filing FORTIFY (US, DE, PL, SE, UK) Initiated POST-MARKETING STUDIES Feasibility1/ study FPI1/ LPI1/ Publication CERTiFy (DE) Revision Arthroplasty (IT) Diabetic Foot (I
Slide 16: On-going post-marketing clinical studies
On-going post-marketing clinical studies Italian-Revision Arthroplasty Study CERTiFy study • First patient recruited in study evaluating • Controlled study investigating the use of CERAMENT G/V in patients undergoing hip and CERAMENT™ BVF in tibial plateau fractures knee arthroplasty revisions • CER
Slide 17: FORTIFY to support approval of CERAMENT G in US
FORTIFY to support approval of CERAMENT™ G in US FORTIFY trial timeline 2017 2018 2019 2020 Final module FORTIFY submission to FDA First patient enrolled FORTIFY follow- completes for CERAMENT™ G in the FORTIFY study up completed enrollment PMA submission, incl. IDE data Proposed “Indication for Use
Slide 18: Financial Review
} BONESUBPORT” Financial Review
Slide 19: 23% increase in Net sales
23% increase in Net sales +23% Q3 Net Sales +36% LTM Net Sales 19
Slide 20: North America Analysis
North America Analysis Jul-Sep FY (SEKm) 2017 2016 2016 +21% Net Sales Net Sales 21.6 17.9 68.8 Q3 Gross profit 19.3 14.6 59.5 Contribution 6.6 2.1 22.5 +32% Net Sales YTD 20
Slide 21: Europe and RoW Analysis
Europe and RoW Analysis Jul-Sep FY (SEKm) 2017 2016 2016 +28% Net Sales 11.1 8.6 35.7 Net Sales Q3 Gross profit 9.4 6.4 28.8 Contribution -3.6 -4.1 -12.2 Drug eluting products increased by 48% in Q3 +45% Net Sales YTD 21
Slide 22: Operating result development
Operating result development Jul-Sep Jan-Sep FY (SEKm) 2017 2016 2017 2016 2016 Net Sales 32.7 26.5 102.3 75.0 104.6 Cost of sales -4.0 -5.5 -12.4 -12.7 -16.3 Gross profit 28.7 21.0 89.9 62.3 88.3 87.8% GM Q3 (79.2) Selling expenses -24.4 -25.0 -71.4 -65.1 -79.8 R&D expenses -12.8 -10.9 -40.9 -23.
Slide 23: KPIs
KPIs Jul-Sep Jan-Sep 12M (SEKm) 2017 2016 2017 2016 LTM Net Sales 32.7 26.5 102.3 75.0 131.9 Sales Growth (%)1/ 23.1 155.9 36.4 93.4 34.6 Gross profit 28.7 21.0 89.9 62.3 115.9 Gross margin (%)1/ 87.8 79.2 87.9 83.1 87.9 Operating loss -20.1 -25.9 -65.9 -60.3 -94.3 Loss for the period -22.9 -34.9 -7
Slide 24: Tracking towards our targets
Tracking towards our targets TARGETS 2020 LTM Q3-17 • Net Sales > SEK 500 million SEK 132M (implies 48% CAGR 2016-2020) 35% • Gross margin > 85.0% 87.9% • Positive operating result SEK -94M 24
Slide 25: Wrap up
} BONESUBPORT” Wrap up
Slide 26: Well positioned to generate shareholder value
Well positioned to generate shareholder value • CERAMENT G and CERAMENT V unrivalled clinical and economic benefits – potential to gain significant market share • Focused on generating further clinical and HEOR data to enhance competitive positioning and drive sales growth • CERTiFy on track to read
Slide 27: Q&A
} BONESUBPORT” Q&A