Staar Surgical Company · NASDAQ:STAA
Staar Surgical — Investor Presentation (January 2011)
32 slides from Staar Surgical's investor presentation, Jan 11, 2011
Slide 1: STAAR Surgical – Cataract IOLs, Refractive ICLs
SURGICAL (NASDAQ: STAA) Cataract IOLs Refractive ICLs January 2011
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS All statements in this presentation that are not statements of historical fact are forward-looking statements, including any projections of earnings, revenue, profit margin, cash or other financial items, any statements of the plans, strategies, and objectives of managemen
Slide 3: STAAR Investment Considerations
STAAR Investment Considerations (NASDAQ: STAA) = Two Large Market Opportunities = Two Differentiated Product Lines = Strong Barriers to Entry = Core Product Revenue Growing 10% = Strong Product Pipeline = No Debt/Strong Balance Sheet = Generating Cash
Slide 4: Intraocular Lens Focus
Intraocular Lens Focus Lenses Placed within the Eye
Slide 5: Surgical Refractive Correction Market
Surgical Refractive Correction Market Up to 1.5 billion nearsighted people worldwide 5 Million Refractive procedures WW by 2014 7.7 % CAGR Market challenged by economy LASIK challenged by the technology’s limitations Source: The Global Refractive Surgery Market by Market Scope November 2009 SKE
Slide 6: Visian ICL
Visian® ICL « ¢ = Implantable Collamer Lens better known as “the Implantable Contact Lens” = Made from a proprietary material called Collamer = Corrects myopia (nearsightedness) inability to see far distance = Toric ICL version corrects both myopia and astigmatism = Premium product with premium resu
Slide 7: Refractive ICL Competitive Landscape
Refractive ICL Competitive Landscape = STAAR is the market leader in this segment = >65% Unit Market Share = Other players: = Ophtec (Anterior Lens) <30% Share = AMO has marketed as distributor with little success = Novartis/Alcon (Anterior Lens) ~5% Share = CE Mark Approval in August 2008 = Very li
Slide 8: Refractive Procedures
Refractive Procedures Laser Based Lens Based Visian ICL
Slide 9: ICL vs. LASIK
ICL vs. LASI = Small micro incision = Incision over 1 inch-long = Addsalensintothe eye = Burns material away = Permanent but removable = Cannot be reversed = Future options preserved = May reduce future options = Provides UV protection = No UV protection = No dry eye = Potential dry eye = 99% satisf
Slide 10: Superior Data for Young Adults in the Military with Low Myopia
Superior Data for Young Adults in the Military with Low Myopia LASIK Lackland Air Force** 20/10 or better 20/18 or better oe ane 20/20 or better 98% 100% * Eyes with pre-op cylinder of 1D or less. ** Dr. Chaz Riley, USAF, Ocular Surgery News, September 25, 2010, 838 eyes with wavefront-optimized LAS
Slide 11: Visian ICL Growth Dynamics
VISIAN ICL GROWTH DYNAMICS = Potential New Approvals in U.S. and Japan = Visian Toric ICL under review currently = Myopic error demographics makes both markets about equal = Expanded Range Visian [CLs just released in CE Markets Q4 = New Visian ICL campaign directed at consumers = Q¢ on intemet and
Slide 12: Toric ICL Under Review
Toric ICL Under Review = U.S. FDA under current review = Very interactive review stage = Responses to FDA on December 234 = Can approve, push to panel or not approve = PMDA review in Japan = Visian ICL just approved in February = Currently responding to questions from PMDA = Decision perhaps second
Slide 13: New ICL CE Mark Approval
New ICL CE Mark Approval Launched Late September 2010 = Expands treatment range on both Visian ICL (myopia) and HICL (hyperopia) . Broadest treatment range of any refractive procedure = Can treat virtually = Can be used as LASIK enhancement = New Visian Hyperopic Toric ICL
Slide 14: Visian ICL Product Pipeline
Visian ICL Product Pipeline Japan | U.S. Toric ICL / 2011 = 2011 Expanded Range (V4b) y Y NP Lower myopes and toric hyperopic Vac Eliminates need for PI V5 2012* = 2013* Preloaded, enhanced safety design *Not expected to be expanded range approval.
Slide 15: New ICL Marketing Campaign
New ICL Marketing Campaign = Directed at the consumer m Series of seven videos = Designed to drive more patients into the office = Focus on benefits of Visian ICL: = HD vision, no hassles of glasses, contacts or LASIK, no dry eye, UV protection, no flap and removable = Videos can be viewed on: www.v
Slide 16: Visian ICL Grows Despite Economy
Visian ICL Grows Despite Economy Visian ICL Unit Growth +19% 2010 vs. 2009 ‘Q1/08 Q2/08 Q3/08 4/08 Q1/09 Q2/09 93/09 Q4/09 Q1/10. Q2/10 93/10 Q4/10 10% ICL market penetration equals $200M at 85% to 90% GM KE
Slide 17: Worldwide Cataract Market
Worldwide Cataract Market “Large and Growing” $3.1 billion Worldwide Cataract IOL market in 2014 = 8.2% CAGR = U.S. Market is $1.1 billion in 2014 = 8.7% CAGR = Driven by innovation / improved outcomes / aging population Source: The Global IOL Market by Market Scope June 2009
Slide 18: Cataract IOL Competitive Landscape
Cataract IOL Competitive Landscape = 15 million global units with 3.8% annual growth = The Big Three Global IOL share leaders = Alcon (Novartis) 54% = AMO (Abbott) 16% = B&L (Private) 10% = STAAR goal: the fastest growing in target markets = 7% share in Japan, 3% share in U.S., target markets = Othe
Slide 19: STAAR Cataract IOLs
STAAR Cataract IOLs Preloaded Proprietary IOLs Silicone Toric Plate (Premium Channel) * Les spectacl e dependent *All Preloaded
Slide 20: Unique Collamer Material
Unique Collamer Material = Proprietary hydrophilic material produces superior quality of vision = 40% water content produces: = Reduces any glare or halo effect = Free from glistenings = Patent protection until 2015 a Preliminary data demonstrates “accommodation” potential
Slide 21: CAST – Collamer Accommodating Study Team
CAST ¢ ‘Collamer Accommodating Study Team” = Clinical observations: Collamer provides some accommodation or better visual results = Inherent property of the material?? = Collamer Accommodating Study ‘Team = Eight leading ophthalmic surgeons = Team given same reading tools to measure near and interme
Slide 22: All cataract patients see very well at far distance
= All cataract patients see very well at far distance = Usually need some reading glasses = nanoFLEX SUPERIOR to all Standard IOLs = Usually need glasses for laptop = nanoFLEX SUPERIOR to ALL
Slide 23: Global Premium IOL Channel
Global Premium IOL Channel = “This rapidly developing market is still in its infancy with 2009 revenues of $265M.” = 380k procedures grow to 3.8M in 2020 = Provides good near, intermediate and distance vision results = Surgeons charge as much as $3,000 or $4,000 per eye = Surgeons and patients motiv
Slide 24: What's the Value for Potential Accommodating Technology?
What’s the Value for Potential Accommodating Technology? = 2008 B&L acquires Eyeonics IOL technology for $300M plus $95M and one more earn-out year m Sales at about $35M in 2007 en = 2009 Abbott acquires Visiogen IOL technology for $400M plus - = Not yet FDA approved = Market Scope Global PCIOL Mark
Slide 25: STAAR IOL Product Pipeline
STAAR IOL Product Pipeline Preloaded Silicone Preloaded 1P Acrylic nanoFLEX IOL nanoFLEX Toric nanoFLEX IT *Depends on label claim pursued. Could be 2013.
Slide 26: 2010 Q4 Pre-release Facts
2010 Q4 Pre-release Facts = Revenues exceeded $14.2M = 7% increase over PY = Record quarter for Visian ICL products = Revenues exceeded $6.5M, 13% increase over PY = Units increased by 20% over PY = 10% of expanded range sales in new markets = Annual revenues increased by 7% to $55M = Core revenues
Slide 27: 2010 YTD Through Q3
2010 YTD Through Q3 Comparison to 2009 Revenue/CORE 5S $37,771 +7.4%/+10.3% Gross Profit Dollars 25,763 $23,138 +11.4% Gross Profit Margin 5 61.3% +220bps Operating Expenses $26,982 $27,149 -0.6' Operating Loss ($1,214) ($4,011) -70% Loss from Con’t Ops y -50% *Excludes $700k non-cash executive seve
Slide 28: 2010 Key Metric Report Card
2010 Key Metric Report Card Double Digit Revenue growth in ICL and IOL Gross Margin mid 60% Progress toward profitability Cash from operations Improve balance sheet
Slide 29: STAAR Balance Sheet
STAAR Balance Sheet = Company Debt Free by Q2 Actions: = Paid $6.8 Million to retire 1.7 million shares of preferred stock ($4 per share) = Paid $4 Million for litigation settlement = Paid $5.3 Million to retire Broadwood note early = Only a working line of credit in Japan = $128M in NOLs (Worth $1
Slide 30: STAAR Near Term Catalysts
STAAR Near Term Catalysts = FDA Approval and launch of Visian Toric = Profitability = Visian ICL growth in Japan (Feb approval) = European launch of new Visian ICL models = Japan PMDA Approval of Visian Toric ICL = CAST II clinical results for Cataract IOLs
Slide 31: STAAR Investment Considerations
STAAR Investment Considerations (NASDAQ: STAA) = Two Large Market Opportunities = Iwo Differentiated Product Lines = Strong Barriers to Entry = Core Product Revenue Growing 10% = Strong Product Pipeline = No Debt/Strong Balance Sheet = Generating Cash
Slide 32: STAAR Surgical
SURGICAL (NASDAQ: ST'AA) Cataract IOLs Refractive ICLs January 2011
STAAR Surgical — Investor Presentation (January 2011) on 6ix