Slide 1: ASX Announcement: Cogstate Investor Briefing
ASX Announcement 24 February 2022 For personal use only Cogstate Investor Briefing Cogstate Ltd (ASX:CGS) has today released an Investor Briefing that provides a summary of the financial results for the half-year ended 31 December 2021 and also provides commentary in respect of the business and fina
Slide 2: Investor Update: Financial results for half-year ended 31 December 2021
For personal use only Investor Update Financial results for the half-year ended 31 December 2021 Presented February 2022 © 2022 Cogstate Ltd. All rights reserved.
Slide 3: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Cogstate Limited (‘Cogstate’). The information in this presentation is of a general nature and does not purport to be complete, nor does it contain all the information which would be required in a prospectus prepared in accordan
Slide 4: Table of Contents
Pages 4 - 7 Cogstate Overview For personal use only Pages 8 – 11 Financial Highlights Pages 12 – 16 Clinical Trials Segment Analysis Pages 17 – 18 Healthcare Segment Analysis Table of Contents Page 19 z Strategy Cogstate Data Page 20 FY22 Financial Outlook Pages 21 – 24 1H22 Summary Financial Statem
Slide 5: Mission to democratize brain health assessment
We are on a mission to democratize brain For personal use only health assessment across clinical research and clinical care... combining proven science with disruptive digital innovation to make the measurement of cognition as simple, standardized, actionable and common as the measurement of blood p
Slide 6: Company Snapshot
Company Snapshot Cogstate was founded in Melbourne, Australia, where approx. 25% of our workforce is based. We For personal use only Cogstate is a leading neuroscience technology company have a small presence in the UK, but most of our optimizing brain health assessments to advance the staff are bas
Slide 7: Market Dynamics
Market Dynamics For personal use only Brain Health Investment Disruption New Drugs An aging population and an Increase in investment in the Clinical trials industry ripe for The launch of Alzheimer’s increased focus on brain neuroscience sector, disruption with a desire to therapeutics will create a
Slide 8: Cogstate Positioning
Cogstate Positioning For personal use only Customer Base Financial 69 pharma/biotech Strength customers over the Profitable and cashflow last 18 months; positive with $133m Trusted partner revenue backlog relationships Product Growth Blue Sky Offering Direct and Indirect Eisai agreement sales channe
Slide 9: 1H22 Financial Highlights
1H22 (Jul-Dec 2021) Financial Highlights (All figures in US$) For personal use only Record Clinical Sales Contracts Executed Record Contracted Future Revenue $54.5m $132.9m Alzheimer’s disease represented 90% of +141% the value of contracts executed in 1H21 +78% Strong contracted revenue pipeline Re
Slide 10: Revenue and EBIT Margins
Revenue and EBIT Margins Operating Leverage Growth in Clinical Trials sales contracts has 25 resulted in increased revenue, especially For personal use only over the last two half-year periods. 20 At the same time, Healthcare revenue has increased following the execution of the 15 Revenue global agr
Slide 11: Contracted Revenue Backlog
Contracted Revenue Backlog Year-On-Year Growth in Revenue Backlog 140 The long-dated contractual nature of For personal use only Cogstate revenue provides revenue 120 predictability and insight into future revenue performance. 100 $132.9m Backlog at 31-Dec-21, up 78% year-on-year US$ Millions 80 • C
Slide 12: Contracted Revenue Run-Off
Contracted Revenue Run-Off With Sales Growth, Revenue to be 45 Recognised from Backlog For personal use only 40 2.1 in Future Periods is 35 Growing This time last year, FY22 contracted revenue was 30 15.8 $20.1m (of which $15.8m related to Clinical Trials), 4.2 whereas today our FY23 contracted reve
Slide 13: Clinical Trials – Our Established Business
Clinical Trials – Our Established Business US$ millions 1H20 2H20 1H21 2H21 1H22 Revenue growth and improved margin For personal use only Revenue 8.25 12.82 12.58 16.09 20.85 Growth in sales contracts over recent years Direct Costs (4.22) (4.56) (4.92) (4.97) (6.36) is providing increased revenue. S
Slide 14: Clinical Trials Sales Contracts
Clinical Trials Sales Contracts Record 1H sales contracts For personal use only 60 • 141% increase over the same period last year 50 • 90% of the value of 1H22 sales contracts 13.7 relate to Alzheimer’s 40 11.4 7.6 US$ Millions Value of contracts signed, by study phase 30 9.5 13.3 FY20 FY21 1H22 20
Slide 15: Wide range of indications
Wide range of indications Cogstate is working on Cogstate Clinical Trials revenue 117 Ongoing Clinical Trials backlog (%), by phase Of 117 ongoing clinical trials, 26% are in Alzheimer’s disease, but other indications include: For personal use only 3% 4% 17 • Healthy volunteers • Angelman syndrome 3
Slide 16: Cogstate Share of Alzheimer's Trial Market
Cogstate Share of Alzheimer’s Trial Market For personal use only There are 127 ongoing industry sponsored P1-3 AD trials listed in clinicaltrials.gov. All Ongoing Of the Alzheimer’s trials that Cogstate is supporting, we were able to map 17 trials to the clinicaltrials.gov dataset. Alzheimer’s Trial
Slide 17: Clinical Trials Business Update
Clinical Trials Business Update For personal use only Growing and Diverse Currently running 117 clinical trials with a revenue backlog of US$92.0 million across more than 30 different indications and Portfolio more than 70 customers. Improved Regulatory Recent decisions by the FDA neurology division
Slide 18: Healthcare – Our Next Frontier
Healthcare – Our Next Frontier Eisai product launch US$ millions 1H20 2H20 1H21 2H21 1H22 stage begins For personal use only Revenue 0.33 1.10 1.15 2.61 2.22 Direct Costs (0.07) (0.04) (0.40) (0.40) (0.45) Revenue represents amortisation of contractual minimum payments from Contribution 0.26 1.06 0.
Slide 19: Healthcare Business Update
Healthcare Business Update For personal use only Exciting Industry There are multiple promising potential Alzheimer’s therapies with pivotal data to be released soon. The launch of Dynamics Alzheimer’s therapeutics will increase demand for easy-to-use, accurate brain health assessments. Progress in
Slide 20: A Unique Opportunity to Drive Insights from Data
A Unique Opportunity to Drive Insights from Data Vision: Enable greater decision-making capabilities for researchers, doctors For personal use only and patients – decisions that will speed the development of a cure or help identify the right patients for treatment. Mission: Create best-in-class digi
Slide 21: FY 2022 Outlook
Clinical Trials Revenue: • 2H22 range of $19m - $22m. Full year FY22 range of $40m - $43m • 2H22 revenue dependant on the value of new sales contracts executed in 2H22, but supported by strong sales pipeline For personal use only Contribution Margin: • 2H22 in the range of 54% - 57%. Full year FY22
Slide 22: Financial Charts
For personal use only Financial Charts 21
Slide 23: Financial Summary – Income Statement
Financial Summary – Income Statement Strong revenue growth driven by the 1H21 2H21 1H22 Calendar significant increase in new Clinical Trial Jul-Dec 2020 Jan-Jun 2021 Jul-Dec 2021 Year 2021 contracts over recent periods. For personal use only US$ Million US$ Million US$ Million US$ Million Improved c
Slide 24: Financial Summary – Balance Sheet
Financial Summary – Balance Sheet Net cash balance of $24.6m, which is an 31 Dec 2020 30 Jun 2021 31 Dec 2021 increase of $6.1m compared to the same For personal use only time last year. US$ Million US$ Million US$ Million Net Cash calculated as gross cash less borrowings and less cash receipts rece
Slide 25: Financial Summary – Cash Flow
Financial Summary – Cash Flow 1H21 2H21 1H22 For personal use only 31 Dec 2020 30 Jun 2021 31 Dec 2021 US$ Million US$ Million US$ Million Net operating cash flow of $1.3m for 1H22, EBIT (0.4) 3.8 6.1 continuing positive cashflow trend over recent Adjustments: periods. Deferred Income 15.0 (0.1) (3.
Slide 26: Additional Materials
For personal use only Additional Materials 25
Slide 27: Clinical Trials
For personal use only Clinical Trials 26
Slide 28: Supported 440+ Industry-Sponsored Clinical Trials
Supported 440+ Industry- For personal use only Sponsored Clinical Trials 115,000 patients tested globally 19,000 test supervisors and raters trained Experienced experts that 10,000 sites supported globally act as trusted partners with customers 115 biopharma customers 100 languages & dialects 27
Slide 29: End-to-End Solution
For personal use only End-to-End Solution allowing full-service support of endpoint management in trials 28
Slide 30: Cogstate Computerized Assessment: A Better Way to Measure Cognition
Lower patient burden • Brief and user-friendly assessments For personal use only • Delivered in-clinic or at-home Cogstate Heightened sensitivity Computerized • Digital automations prevent errors • Culturally-neutral stimuli with many alternate forms Assessment: • Hundreds of published studies A Bet
Slide 31: Science backed by Data
• Extensive library of peer reviewed publications in international scientific journals demonstrate the Cogstate tasks are For personal use only sensitive to the cognitive impairment associated with dementia due to Alzheimer’s disease, Parkinson’s disease, Schizophrenia, Lewy Body Disease and HIV Sci
Slide 32: Case Study: Selecting the Appropriate Patients for Global AD Programs
Case Study: Selecting the The study teams ensured the right patients Appropriate Patients for Global entered the trial by selecting a verbal memory For personal use only screening measure with proven cross-culture AD Programs validity across 29 countries and 35 languages Challenge Outcome • A sponso
Slide 33: Case Study: Demonstrating Cognitive Safety of NMDA Modulator Antidepressant
Case Study: Demonstrating The sponsor successfully characterized Cognitive Safety of NMDA cognitive effects as part of first-in-class drug For personal use only approval: demonstrated that 2 hours post-dose Modulator Antidepressant cognitive impairment returned to placebo levels Medications Challeng
Slide 34: Case Study: At-home, Web-based Computerized Testing
Case Study: At-home, Web-based The sponsor achieved remote monitoring of Computerized Testing cognitive change using CBB: 28,000 study For personal use only participants collected longitude data on cognitive performance Challenge Outcome • The Brain Health Registry is a web- • The Cogstate Brief Bat
Slide 35: Case Study: Measuring Neurocognitive Effects of Oncology Treatments in Children
Sponsors experienced improved data collection and Case Study: Measuring participant satisfaction as demonstrated by: Neurocognitive Effects of For personal use only Oncology Treatments in >86% ofsuccessfully acute lymphoblastic leukemia patients completed the full schedule of tests Children Challeng
Slide 36: Healthcare
For personal use only Healthcare 35
Slide 37: Who is Eisai?
Who is Eisai? • Listed on Tokyo Exchange For personal use only • Market Cap approx. ¥1.7Tn (A$21bn) • Total Assets (31-Dec-21) ¥1.17Tn (A$14bn) • Revenue (year to 31 Mar 2020) ¥646bn (A$7.7bn) License Agreements • Profit before tax: ¥52bn (A$621m) • Focusing on dementia as global pioneer since Arice
Slide 38: Global License
For personal use only • The parties began discussions in 2018 • Japan agreement executed 27 August 2019 - 10-year license from execution - NouKNOW (nouknow.jp) product launch occurred 31-Mar-20 initially targeting (i) municipalities Global License providing health services to local residents and (ii
Slide 39: Eisai Commercial Terms
Eisai Commercial Terms For personal use only License Commercials Japan: $1m upfront (received 1Q20) and 50/50 profit split • 2 x 10-year licenses (Japan & Rest-of-World) Rest-of-World (ROW): • No longer has right to terminate ROW after year 5 • US$15m upfront – received in 2Q21 • Includes all Cogsta
Slide 40: Eisai: Revenue vs Cash
Eisai: Revenue vs Cash For personal use only 1 Japan 2 Rest of World Revenue Revenue $1m treated as deferred revenue to be recognised on a $45m treated as deferred revenue to be recognised on a straight- straight-line basis over 10yrs. line basis over 11yrs (10yr term + 12mths to commence) 50/50 pro
Slide 41: Eisai Minimum Payments
16 50 14 45 Eisai Minimum Payments For personal use only 40 12 Revenue vs Cash 35 US$46m minimum contracted Cumulative Amount 10 payments (including Japan and Global 30 Annual Amount Agreements) US$ US$ 8 25 20 Cash 6 • Lump sums 15 • $1m received FY20 4 • $15m received FY21 10 • Quarterly minimum p
Slide 42: Cogstate
G Cogstate Ajuo asn feuosied 105