Biote Corp. · NASDAQ:BTMD
Biote — Haymaker Acquisition Corp. III — SPAC Merger (March 2022)
65 slides from Biote's SPAC merger presentation, Mar 30, 2022
Slide 1: Analyst Day Presentation
Exhibit 99.1 March 29, 2022 Analyst Day Presentation Confidential Material – Do Not Distribute
Slide 2: Disclaimer
Disclaimer About this Presentation This presentation (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 Haymaker Acquisition Corp. III (“Haymaker”)
Slide 3: Today's Agenda
Biote Analyst Day – March 29, 2022 Today’s Agenda • Introductions Terry Weber • General Presentation on Biote’s Business Chief Executive Officer, Biote Mickey Karram, MD • Clinical and Provider Presentation Medical Advisory Board, Biote Robb Gibbins • Financial and Key Commercial Metrics Presentatio
Slide 4: Presenters: Weber, Gibbins, Beer, Heyer
Terry Weber Robb Gibbins, Marc Beer Steven Heyer Andrew Heyer CEO Chairman Chairman and CEO President and Director CPA, CFA Biote Medical Biote Medical Haymaker Acquisition Corp. III Haymaker Acquisition Corp. III CFO Biote Medical 25+ years of experience as 25+ years of experience as an executive 4
Slide 5: Why We Like Biote
Why We Like Biote Haymaker III Investment Criteria Biote $750M – $2bn consumer, retail, media, or hospitality Market leader in health & wellness category driving rapid, business with channel advantages profitable growth through highly attractive physician channel Proprietary operating model yielding
Slide 6: Biote's Numbers Speak for Themselves
Biote’s Numbers Speak for Themselves $46M—$50M $160M—$166M 2022E 2022E EBITDA Revenue • >11x Next-Largest (1) Competitor • $7bn+ Hormone ~20% ~20% ~29% Replacement 2020A – 2022E 2020A – 2022E 2022E (2) Therapy Market Net Revenue CAGR EBITDA CAGR EBITDA Margin • Accelerated Growth • Exceptional Margi
Slide 7: Transforming Healthy Aging
Transforming Healthy Aging • Innovative, personalized hormone therapy delivered by Biote- certified providers with 10-year track record of patient satisfaction • High-growth, profitable, health & wellness company with continued growth potential in the US and globally • Commercial expertise with 5,30
Slide 8: How Hormone Deficiency is Related to Risky and Debilitating Diseases
How Hormone Deficiency is Related to Risky and Debilitating Diseases (1) Hormone Deficiency Symptoms Related Diseases After the age of 40, many of us begin to face these… People with hormone deficiency are at increased risk of… (2)(3) • Low energy• Irritability • Heart disease (4)(5) • Insomnia• Dep
Slide 9: Hormone Therapy is Proven to Provide Symptom Relief
Hormone Therapy is Proven to Provide Symptom Relief (1) (1) (2) Symptom Prevalence Complete Relief Change in Symptom Severity (%) (%) (%) 81.7 Hot flashes / sweats 90.8 ↓ 69 73.5 Insomnia 61.4 ↓ 62 50.0 Dyspareunia 71.6 ↓ 76 83.3 Loss of libido 67.0 ↓ 73 84.2 Irritability 73.3 ↓ 66 79.2 Depression 7
Slide 10: Hormone Deficiency Affects 200M Americans with ~80% Untreated
Hormone Deficiency Affects 200M Americans (1) (2) with ~80% Untreated Addressable Patient Population Female Male Hormone Replacement •Women's estradiol •Men experience a 44% Therapy levels decline 67% from reduction of $7bn+ the mid 40s to the mid testosterone between (9) +7% CAGR (3) (6) 50s ages 3
Slide 11: Biote Offers Providers a Convenient Hormone Therapy Solution
Biote Offers Providers a Convenient Hormone Therapy Solution in a Clinical Setting Medically prescribed by Over-the-Counter Pills providers × Not medically prescribed Personalized dosage with × One-size-fits all approach sustained release × Self-administered × Risk of inconsistent compliance Conveni
Slide 12: Complementary Portfolio of Treatments for Providers
Complementary Portfolio of Treatments for Providers to Address Clear Consumer Health Needs Biote Method Nutraceuticals Revenue % of ‘22 • Dietary supplements that are Revenue ($ in millions) $160-$166 • Proprietary BioTracker Practice supportive to patients undergoing 1% Management Software pellet t
Slide 13: Scaled Market Leader with Differentiated Provider Business Model
Scaled Market Leader with Differentiated Provider Business Model and Unparalleled Operating Experience Customer Support Staff Sales Marketing Training • 80+ national field sales team• In-house full-service marketing and • 1 national training center• 10+ in-house customer support analytics capabiliti
Slide 14: Biote Has An Exceptional Financial Profile
Biote Has An Exceptional Financial Profile Financial Summary Key Stats Revenue ($ in millions) 20% 300k+ ’20-’22 Revenue $160-166 Active Patients of $139 $116 CAGR Providers on Therapy $110 2019A 2020A 2021A 2022E ~29% EBITDA 90% 2022E Margin Clinic Retention Rate EBITDA ($ in millions) $46-50 $36 $
Slide 15: End-to-End Practice-Building Platform
Biote’s End-to-End Practice-Building Platform Drives Clinic Success and Differentiates the Brand Biote Proprietary Business Model + + + + = Didactic and Proprietary Practice Clinical Access to High Practice Training Practice Retention Clinical Certification Management Decision Support Quality Dietar
Slide 16: Didactic and Clinical Certification Training
Didactic and Clinical Certification Training • Intensive 2-day training at Biote training centers • Scientific content on disease, diagnosis & treatment • Real-world / live clinical education • Practice certification Didactic and • Comprehensive 2-day front- and back-office staff Clinical training:
Slide 17: Proprietary Practice Management Software
Proprietary Practice Management Software • Exclusive “Biote Method” software • Enables critical aspects of running a hormone optimization clinic • Ordering via third party outsourcing facilities Proprietary • Inventory management Practice • Patient treatment tracking Management Software • System int
Slide 18: Clinical Decision Support System
Clinical Decision Support System • Assists practitioners in providing individualized treatment options to patients • Supported by practitioner data collected over the past 10 years and 2.5 million procedures Clinical • Reference section includes clinical data, Decision published literature, and clin
Slide 19: Access to High Quality Dietary Supplements and Data
Access to High Quality Dietary Supplements and Data about Hormone Optimization Products • Biote-certified practitioners have access to outsourcing facilities offering high quality hormone products. • Biote-branded dietary supplements are contract manufactured by industry-leading suppliers • Address
Slide 20: Continuing Practice Education and Support
Continuing Practice Education and Support • Biote Practice Development Manager assigned to accounts – ensures smooth start and scale up • Established pre- and post-launch clinic SOPs • Practitioner mentorship for 24 months Continuing • 24-hour “Therapy Line” for professional clinical Practice suppor
Slide 21: Hear from our Practitioners
Hear from our Practitioners 21 Confidential Material – Do Not Distribute
Slide 22: Proven Model Poised for Significant Growth
Proven Model Poised for Significant Growth Opportunity to expand our universe of targeted providers Total providers in U.S. Including Physicians and NPs involved in Patient Care 1,200,000 Providers with relevant specialties Including IM, GP, FP, OB-GYN, Urology 260,000 Currently targeted specialty g
Slide 23: Marketing Approach
Marketing Approach Biote-Branded Dietary Provider Patient Supplements • Direct consumers that are actively seeking • Provider acquisition targeting OBGYN, care from Biote-certified practitioners • Direct-to-Patient expansion Family Practice, Internal Medicine and through advanced AI ad tech, marketi
Slide 24: In-House Full-Service Marketing
In-House Full-Service Marketing Digital Traditional • Website/eCommerce • Strategy, creative, execution & • Email • Sales Collateral deployment• Social Media • Public Relations • Paid Media- SEM, Paid • Web & media asset development Social, Programmatic (Display & TV) • Omnichannel management • SEO
Slide 25: Strength & Value of the Biote Brand
Strength & Value of the Biote Brand The Biote brand… • Represents the ability for patients to be the “best version of themselves” • Reinforces a science-based, patient-focused approach to hormone health The Biote brand offers… • Complete branded system for certified practitioners • Longstanding name
Slide 26: Compelling Value Proposition for Providers
Compelling Value Proposition for Providers Number of Clinics ~2,800 2,606 2,166 1,616 1,112 2017A 2018A 2019A 2021A 2020A Annual Certified Clinic Financials Profit per Average Procedure Profit Ancillary Profit Clinic Profit Procedure Procedures + = Average Clinic $240 310 $74,400 $25,215 $99,615 x =
Slide 27: Geographic Scalability
Geographic Scalability Geographic scalability of the business is both predictable and capital efficient with a solid base of certified providers and their patients in current core states Today Future Near-Term Expansion Markets • Mid West (10 States) • Current core states include TX, OK, NM, CO, AR,
Slide 28: Thank You
Thank You 28 Confidential Material – Do Not Distribute
Slide 29: Mickey Karram, MD
Mickey Karram, MD Clinical Professor of Ob/Gyn and Urogynecology University of Cincinnati Director of FPMRS Fellowship Training Program The Christ Hospital Cincinnati, Ohio 29 Confidential Material – Do Not Distribute
Slide 30: Dr. Mickey Karram
Dr. Mickey Karram Mickey Karram, MD, is an internationally renowned urogynecologist and pelvic surgeon. He is board certified in Obstetrics and Gynecology as well as Female Pelvic Medicine and Reconstructive Surgery. He completed his fellowship training in Urogynecology at Harbor UCLA School of Medi
Slide 31: My Story
My Story • Clinical and academic career in women’s health • Relationship with industry 1-Consultant for multiple medical device, biotech, and pharma companies 2-Identified visionary platforms, undertook appropriate research trials, and provided clinical talk tracks to provide value, creating disrupt
Slide 32: Overview of Hormones in Men and Women
Overview of Hormones in Men and Women • Hormones and the Endocrine system • Aging is associated with a loss of Sex Hormones in both Men (Andropause) and Women (Menopause). • Androgens (male hormone) • Estrogens (female hormone) 1 2 • Loss of hormones is more abrupt in women than in men. • Symptoms o
Slide 33: Clinical Importance of Hormonal Balance in an Aging Population
Clinical Importance of Hormonal Balance in an Aging Population • Medical evidence links hormone imbalance with both immediate symptoms and more serious health risks 1 • As many as 200 million Americans experience hormone imbalance • A serious treatment gap exists • Diagnosis is about symptoms, not j
Slide 34: Menopause: Epidemiology & Symptoms
Menopause: Epidemiology & Symptoms 1 • ~47 million women are affected by menopausal symptoms. 2 • 67% reduction in estradiol between the mid-40s and mid-50s. 3 • Men experience a 44% average reduction between ages 30 and 74. • Testosterone is prevalent sex hormone in the female body • Decline in hor
Slide 35: Testosterone in women… Really?
Testosterone in women… Really? • Men do not have a monopoly on Testosterone. • Testosterone is also produced in the ovaries, but ~ a tenth of that in males. • Testosterone contributes to regulation of body functions in women. • Control sex drive, promote muscle mass and increase energy. • In menopau
Slide 36: Andropause (Hypogonadism): Epidemiology & Symptoms
Andropause (Hypogonadism): Epidemiology & Symptoms • Male hypogonadism is a deficiency in testosterone. 1 • Serum Testosterone <300 ng/dL and one or more clinical symptoms. 2 3 • Multiple studies: low testosterone is as high as 38.7% in males over 45. 4 • During a man’s 20s, testosterone levels are
Slide 37: Provider Treatment Options
Provider Treatment Options Women • Menopause symptoms have been frequently treated with Estrogen. • Progesterone is co-administered for women of child-bearing age with an intact uterus. • FDA & EMA-approved forms: oral tablets, injectables, gels, creams and vaginal devices. • Both bioidentical and s
Slide 38: The Gender Divide – The Start
The Gender Divide – The Start • 2002 Publication of the Women’s Health Initiative (WHI) study erroneously frightened patients. • Sensational media reporting resulted in widespread abandonment of HRT use 1 • 2013 Publication of subsequent re-analysis was illuminating • Combination of estrogen-synthet
Slide 39: The Gender Divide – The Rest of the Story
The Gender Divide – The Rest of the Story • Practitioner education in diagnosis and treatment of hormone imbalance is frequently dated. • Medical school often last significant education on menopause. 1 • Practitioners unprepared re: treating patients with optimal contemporary therapies. • Extensive
Slide 40: Clinical Support for Treating Women with Testosterone
Clinical Support for Treating Women with Testosterone ▪ Decades of clinical studies demonstrate the utility of testosterone for women. ▪ Multiple randomized clinical trials show that testosterone therapy results in statistically significant benefits to women with Hypoactive Sexual Desire Disorder. 1
Slide 41: Other Clinical Observations
Other Clinical Observations 1 2 ▪ Two pellet-focused studies demonstrated efficacy and safety. ▪ Cardozo et al (n=120) showed that E&T combination therapy showed positive 3 relief of menopausal symptoms, including: ▪ Hot Flushes; Headache; Insomnia; Palpitations; Bone Pain; Dyspareunia; Loss of Libi
Slide 42: Defining Hormone Optimization
Defining Hormone Optimization • Dispelling the MYTH that symptoms of menopause and andropause are normal affects of aging and cannot be safely treated. • Providing patients with standard QOL questionnaires and quantifying the impact of their symptoms before and during treatment. • Obtaining appropri
Slide 43: Biote's Offering… and the Future
Biote’s Offering… and the Future • Biote’s end-to-end platform addresses key “gaps.” • Practitioner education & certification • Suite of critical practice management assets • Marketing • Introductions / Access to key therapies and products • Research shows testosterone pellet therapy has consistent,
Slide 44: Thank You
Thank You 44 Confidential Material – Do Not Distribute
Slide 45: Patient
Patient 45 Confidential Material – Do Not Distribute
Slide 46: Financials and Key Commercial Metrics
Financials and Key Commercial Metrics 46 Confidential Material – Do Not Distribute
Slide 47: Impressive Financial Performance with Strong Growth, Profitability and Cash Flow
Impressive Financial Performance with Strong Growth, Profitability and Cash Flow Revenue EBITDA ($ in millions) ($ in millions) $160-166 $46-50 $139 $36 $116 $110 $33 $24 2019A 2020A 2021A 2022E 2019A 2020A 2021A 2022E % Gross Margin % Margin 60% 62% 65% 67% 22% 28% 26% ~29% ~20% ~20% ~29% 67% 2020A
Slide 48: Biote Revenue Generation
Biote Revenue Generation Education • Intensive medical and practice management training and certification prepares clinic 1 • Biote generates modest training revenue Inventory • Practice introduced to third party pharmacy • Practitioners order and maintain hormone inventory from outsourcing faciliti
Slide 49: Biote Business Model: Sources of Revenue
Biote Business Model: Sources of Revenue • Biote charges service fees on every hormone optimization Procedure procedure 79% Revenue• Revenue per procedure on average: $180 • Patients are tested for hormone, vitamin and mineral values Dietary at initial practitioner visit • 78% of Biote-certified cli
Slide 50: Modeling Concepts
Modeling Concepts • Clinic-based models → highly predictive • New clinic vs old clinic growth mix is stable / predictable • New clinics typically have a ramp up period • Existing sales force will deliver majority of revenue Quarterly growth in 2022 • Sales force expansion impacts new clinic acquisit
Slide 51: Key Metrics For a Clinic-Based Model
Key Metrics For a Clinic-Based Model Key Metrics 2021 2022 Estimate Revenue $139 M $160-166 M Margin % 65% 67% EBITDA $36 M $46-50 M 2021 Total Clinics ~2,800 % of Biote-certified clinics offer Biote-branded 78% supplements as of 2021 Average Supplement Volume per Practice as of ~$13,500 2021 51 Con
Slide 52: Impressive Financial Performance with Strong Growth, Profitability and Cash Flow
Impressive Financial Performance with Strong Growth, Profitability and Cash Flow Revenue EBITDA ($ in millions) ($ in millions) $160-166 $46-50 $139 $36 $116 $110 $33 $24 2019A 2020A 2021A 2022E 2019A 2020A 2021A 2022E % Gross Margin % Margin 60% 62% 65% 67% 22% 28% 26% ~29% ~20% ~20% ~29% 67% 2020A
Slide 53: Exceptional Leadership Team
Exceptional Leadership Team with a Proven Track Record in Managing High Growth Businesses Gary Donovitz, MD Terry Weber Marc Beer Robb Gibbins Founder Chief Executive Officer Chairman Chief Financial Officer Joe Butler Cary Paulette Marybeth Conlon Kevin Key Jennifer Schimmel Chief Information Offic
Slide 54: Dedicated Corporate Staff
Dedicated Corporate Staff 54 Confidential Material – Do Not Distribute
Slide 55: Investment Highlights
Investment Highlights Large Under-Penetrated Market Opportunity with Secular Tailwinds Fueling Sustainable Growth 1 Practice-Building Platform Designed to Take Hormone Optimization Mainstream 2 Proprietary Operating Model Creates Disruptive Flywheel Effect 3 Compelling Value Proposition for Practiti
Slide 56: Transaction Overview
Transaction Overview ($ in millions, except share price) Sources of Funds Uses of Funds (1) (2) $318 $345 HYAC Cash in Trust Biote Equity Rollover Estimated Existing Balance Sheet Cash Prior to Closing 27 Secondary Proceeds 199 (2) 345 Cash to the Balance Sheet 179 Biote Equity Rollover HYAC Founder
Slide 57: Public Comparables Operational Benchmarking
Public Comparables Operational Benchmarking Consumer-oriented Healthcare Consumer Wellness 2021A – 2022E Sales CAGR Median: 26.6% Median: 10.5% k 2021A – 2022E EBITDA CAGR Median: 21.0% Median: 3.2% Source: Capital IQ and Company filings as of March 9, 2022. 57 Confidential Material – Do Not Distrib
Slide 58: Public Comparables Operational Benchmarking
Public Comparables Operational Benchmarking Consumer-orien Consumer ted Healthcar -orien eted Healthcare Consumer Consumer Welln ess Wellness 2022E EBITDA Margin Median: 31.6% Median: 19.7% (1) 2022E FCF Conversion Median: 80.3% Median: 98.0% Source: Capital IQ and Company filings as of March 9, 202
Slide 59: Public Comparables Valuation Benchmarking
Public Comparables Valuation Benchmarking Consumer-oriented Healthcare Consumer Wellness FV / 2022E Sales Median: 7.1x Median: 3.3x FV / 2022E EBITDA Median: 19.6x Median: 16.0x Source: Capital IQ and Company filings as of March 9, 2022. Note: NM reflects a negative multiple or a multiple greater th
Slide 60: Thank You
Thank You 60 Confidential Material – Do Not Distribute
Slide 61: Overview Haymaker III
Overview Haymaker III 61 Confidential Material – Do Not Distribute
Slide 62: Overview of Haymaker III
Overview of Haymaker III Haymaker Acquisition Corp. III is a $318M SPAC with a mandate to transact in the consumer and consumer-related products, media, hospitality and services industries. Haymaker III Overview Peerless Management Team • Haymaker III is a $318 million Special Purpose Acquisition Co
Slide 63: Risk Factors: Industry and Business
Risk Factors Risks Related to Our Industry and Business • The healthcare industry is highly regulated, and government authorities may determine that we have failed to comply with applicable laws, rules or regulations. • Our success will depend upon whether the Biote Method and our Biote-branded diet
Slide 64: Risk Factors: Regulation
Risk Factors Risks Related to Regulation • Our employees, independent contractors, consultants, Biote-certified practitioners, Biote partnered clinics medical advisors and suppliers may engage in misconduct or other improper activities, including non-compliance with • We market dietary supplements a
Slide 65: Risk Factors: Business Combination
Risk Factors Risks Related to the Business Combination • Biote and Haymaker will be subject to business uncertainties and contractual restrictions while the business combination is pending. • The Board did not obtain a fairness opinion with respect to Biote and, therefore, you may be relying solely
Haymaker Acquisition Corp. III — SPAC Merger (March 2022) on 6ix