Slide 1: Cogstate Investor Presentation October 2012
For personal use only ASSESS • MONITOR • IMPROVE C OG STAT E • C ONF IDE NTIAL • 2 012 I NV E STO R P R E SE NTATIO N • O C TO B ER 2 0 1 2
Slide 2: Our Goal Today
For personal use only OUR GOAL TODAY • INTRODUCE THE ‘NEW COGSTATE’ – NEW VISION, NEW BUSINESSES, NEW BRANDING • UPDATE YOU ON KEY ASPECTS OF FY ‘12 AND OUR OUTLOOK FOR FY ‘13 • COMMUNICATE THE EXCITEMENT EVERYONE AT COGSTATE FEELS ABOUT IMPORTANT NEW OPPORTUNITIES INVESTOR PRESENTATION • OCTOBER 20
Slide 3: Here Today
HERE TODAY For personal use only Dr Paul Maruff COGSTATE FOUNDER AND CHIEF SCIENCE OFFICER Neuropsychologist with expertise in identification and measurement subtle behavioural and cognitive dysfunction Over 100 research articles in international peer-reviewed scientific journals Martyn Myer AO COGS
Slide 4: Our History
For personal use only OUR HISTORY TO UNDERSTAND THE NEW COGSTATE, IT IS IMPORTANT TO FIRST UNDERSTAND OUR HISTORY, WHICH SETS THE FOUNDATION FOR COGSTATE’S GROWTH OPPORTUNITIES INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 5: Cogstate Founders
For personal use only COGSTATE •DAVID DARBY FOUNDERS •PAUL MARUFF PEOPLE OF SCIENCE •MARTYN MYER INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 6: Aboriginal Story
For personal use only ABORIGINAL STORY INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 7: Cogstate Developed a Unique Solution
For personal use only COGSTATE DEVELOPED A UNIQUE SOLUTION A COMPUTERISED COGNITIVE ASSESSMENT TOOL THAT WAS: • PRECISE • SCIENTIFIC • UNIVERSAL • ACCESSIBLE INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 8: Founding Vision
For personal use only FOUNDING VISION TO DEVELOP A COGNITIVE ASSESSMENT TOOL THAT COULD BE USED TO MEASURE COGNITION ANYWHERE AND FOR ANY PURPOSE. INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 9: Economic Reality Drives Us to Clinical Trials
ECONOMIC REALITY DRIVES US TO CLINICAL TRIALS For personal use only COGSTATE CLINICAL TRIAL SALES CONTRACTS 15 14 13 12 11 10 US $ MILLIONS 09 08 07 06 05 04 03 02 01 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 10: A Business That Is 'Best in Class'
WHAT COGSTATE HAS For personal use only DEVELOPED IS A BUSINESS THAT IS ‘BEST IN CLASS’ • IMPRESSIVE LIST OF REPEAT CUSTOMERS AND TRANSITION FROM SMALL PHASE 1 TO LARGE PHASE 3 STUDIES • PROFITABLE, SUSTAINABLE AND KEEPS US AT THE CENTER OF NEW RESEARCH ON COGNITION AND PHARMACEUTICALS • FUNDS GROWT
Slide 11: Cogstate Is Now Poised to Fulfill Its Original Vision
COGSTATE IS NOW For personal use only POISED TO FULFILL ITS ORIGINAL VISION THE NEW COGSTATE HAS EVOLVED BEYOND CLINICAL TRIALS INTO A MULTIFACETED COGNITIVE ASSESSMENT AND TRAINING COMPANY C L I N I C A L T R I A L S ASSESS • MONITOR • IMPROVE INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR •
Slide 12: Supporting This Transformation
For personal use only SUPPORTING THIS TRANSFORMATION TO ENSURE A SUCCESSFUL TRANSFORMATION, WE HAVE BEEN WORKING TO ENSURE THAT COGSTATE’S IDENTITY, RESOURCES AND STRUCTURE ARE ALIGNED TO TAKE ADVANTAGE OF THESE SIGNIFICANT NEW OPPORTUNITIES INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IM
Slide 13: Branding, Organization and Resources
BRANDING, ORGANIZATION AND RESOURCES For personal use only KEY HIRES: ASSESS • MONITOR • IMPROVE C L I N I C A L T R I A L S PRESIDENT-SOPHIE EGHOLM PRESIDENT-JASON SADA PRESIDENT-BRAD O’CONNOR DR JUDY JAEGER JOE GERMAINE MERCK SALES TEAM DR AMY VEROFF DR JASON CROMER DR LISLE KINGERY INVESTOR PRESE
Slide 14: For personal use only
For personal use only INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 15: What Is Cogstate?
For personal use only WHAT IS COGSTATE? COGSTATE IS A COGNITIVE INTELLECTUAL PROPERTY (IP) COMPANY THAT IS DRIVEN BY TECHNOLOGY, SCIENCE, RESEARCH AND INNOVATION WHAT WE ARE: WHAT WE DO: • Precise • Assess • Scientific • Monitor • Universal • Improve • Accessible INVESTOR PRESENTATION • OCTOBER 2012
Slide 16: Vision
For personal use only VISION COGSTATE’S PRODUCTS WILL BECOME THE GLOBAL STANDARD FOR ASSESSING MONITORING AND IMPROVING COGNITION INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 17: FY2012 Results: A Record Financial Result
FY2012 RESULTS For personal use only A RECORD FINANCIAL RESULT REVENUE UP 48% TO $12M NPAT $2.5M COGSTATE SALES REVENUE AND PROFITABILITY, BY FINANCIAL YEAR 13000 12000 11000 10000 9000 8000 7000 6000 $ MILLIONS 5000 4000 3000 2000 1000 0 (1000) (2000) (3000) Sales Revenue FY 2004 FY 2005 FY 2006 FY
Slide 18: Blueprint for Success
BLUEPRINT FOR SUCCESS For personal use only COGSTATE’S BUSINESS UNITS COMPLIMENTARY BUT INDEPENDENT C T UAL PROPERTY CO COGNIGRAM E LLE MP AN COGSTATE CT N T Y I Cognitive Screening • Clinical Trials • Concussion Management • Rater Training • HIV COGNITION • Abuse Liability • ADHD • Other indication
Slide 19: Clinical Trials
For personal use only CLINICAL TRIALS CUSTOMERS ARE PHARMA AND BIOTECH COMPANIES WANTING TO QUANTIFY THE EFFECT OF THEIR DRUGS ACCOUNTED FOR 97% OF TOTAL FY12 REVENUE PROVIDES THE FUNDING FOR GROWTH INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 20: Clinical Trials Customers
CLINICAL TRIALS CUSTOMERS For personal use only INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 21: Contractual Outline
CONTRACTUAL For personal use only OUTLINE • CONTRACT FOR EACH CLINICAL TRIAL • 20-30 SALES CONTRACTS P.A. • SIZE OF CONTRACTS: $0.1M - $4.0M • LENGTH OF CONTRACT: 9 MTHS – 48 MTHS • REVENUE RECOGNISED OVER THE LIFE OF THE CONTRACT INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 22: CT Growth
CT GROWTH For personal use only COGSTATE CLINICAL TRIAL SALES CONTRACTS 15 14 13 12 11 10 US $ MILLIONS 09 08 07 06 05 04 03 02 01 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 23: Key Staff Additions
KEY STAFF ADDITIONS For personal use only Dr Judy Jaeger VP Clinical Trials Professor of Psychiatry and Behavioural Science at Albert Einstein College of Medicine in NY Adjunct Professor in the CUNY Doctoral program in Neuropsychology Over 25 years experience in clinical and experimental neuropsycho
Slide 24: Key Staff Additions
KEY STAFF ADDITIONS For personal use only Dr AMY VEROFF Consultant Neuropsychologist Over 30 years experience in clinical and research settings Almost 25 years experience in measuring cognition in clinical drug trials where she established and lead a division of i3 (a clinical research organisation
Slide 25: Axon Sports
For personal use only AXON SPORTS PROTECT & TRAIN THE ATHLETIC BRAIN • Concussion baseline testing (CCAT) • Cognitive Training INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 26: CCAT
For personal use only CCAT EXISTING USERS INCLUDE: 2 • AFL • NRL 2 • Australian Racing Board • UK Rugby League & Union • NBA • Toyota (in community level Australian rules football) INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 27: For personal use only
For personal use only INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 28: Training Commercialisation Plan
For personal use only TRAINING COMMERCIALISATION PLAN Key installations in elite programs: HE NEC K • Athletes' Performance Institute VE T IN ABO TRA • University of Oregon Football 01 • Brigham Young Football • Cal State Fullerton Baseball • Easton Bell (Baseball) INVESTOR PRESENTATION • OCTOBER 20
Slide 29: Screening
For personal use only SCREENING THE ABILITY OF COGSTATE TECHNOLOGY TO DETECT THE EARLIEST SIGNS OF COGNITIVE IMPAIRMENT ASSOCIATED WITH ALZHEIMER’S DISEASE REPRESENTS, BY FAR, OUR LARGEST COMMERCIAL OPPORTUNITY INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 30: Alzheimer's Disease
ALZHEIMER’S For personal use only DISEASE Every 4 seconds, a new case of dementia is diagnosed somehwere in the world Estimated 36 million people have dementia worldwide That number is expected to increase to 66m by 2030 and 115 million by 2050 INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR •
Slide 31: Alzheimer's Disease
ALZHEIMER’S For personal use only DISEASE Because of aging population, without improvements in care global costs will rise 85% to more than $1 trillion by 2030 INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 32: Early Detection
EARLY For personal use only DETECTION KEY Active management from the earliest stages of the disease improve quality of life Disease modifying drugs are making progress in the earliest stages of the disease -LILLY’S SOLANEZUMAB DATA INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 33: Cogstate Opportunity
COGSTATE For personal use only OPPORTUNITY SIMPLE BUT ACCURATE SCREENING TOOL QUICKLY ADMINISTERED PROVIDES RELIABLE, OBJECTIVE DATA ABOUT KEY COGNITIVE FUNCTIONS TO HELP PHYSICIANS IDENTIFY EARLY SIGNS OF AD, ALLOWING FOR TIMELY DIAGNOSIS INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPR
Slide 34: Merck
For personal use only MERCK PARTNERED WITH MERCK IN CANADA TO LAUNCH COGNIGRAM IN THE COMING WEEKS ALLOWS DOCTORS TO UTILISE THE TECHNOLOGY WITHIN EXISTING PRACTICE MANAGEMENT ROUTINE CANADA IS A TEST MARKET, LOOK TO EXPAND INTO OTHER TERRITORIES IN TIME INVESTOR PRESENTATION • OCTOBER 2012 ASSESS •
Slide 35: Publication in Current Issue of Neurology
PUBLICATION IN CURRENT ISSUE OF NEUROLOGY For personal use only INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 36: Effect of APOE ε4 Carriage and Abnormal B-Amyloid on Memory
EFFECT OF APOE εε4 CARRIAGE AND For personal use only ABNORMAL B-AMYLOID ON MEMORY IN HEALTHY ADULTS ε4 pos ε4 neg ε4 neg ε4 pos INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 37: HC, MCI: Cogstate Memory Composite
For personal use only HC, MCI: COGSTATE MEMORY COMPOSITE -0.00 -0.20 -0.40 Memory Composite (OCLOBK) -0.60 -0.80 DECLINE -1.00 -1.20 -1.40 -1.60 -1.80 -2.00 *+,-./0-% &'%123% 4(%123% INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 38: Decline in Memory Predicts High B-Amyloid in Healthy Adults
TURNING IT AROUND. DECLINE IN MEMORY PREDICTS For personal use only HIGH B-AMYLOID IN HEALTHY ADULTS Neuroepidemiology 2010;34:65-75 73% PIB+ INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 39: 2012 Summary
2012 SUMMARY For personal use only GROWTH IN CLINICAL TRIALS PRODUCED OUR MOST PROFITABLE YEAR ACQUISITION OF REMAINING 50% OF AXON SPORTS SIGNIFICANT SCIENTIFIC ADVANCEMENT VIA AIBL AND OTHER STUDIES MERCK CONTRACT INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 40: 2013 Financial Outlook
2013 For personal use only FINANCIAL OUTLOOK CLINICAL TRIALS WILL CONTINUE TO BE THE GENERATOR OF SHORT TERM FINANCIAL PERFORMANCE, THEREBY FUNDING GROWTH IN OTHER AREAS INVESTOR PRESENTATION • OCTOBER 2012 ASSESS • MONITOR • IMPROVE
Slide 41: Cogstate CT Financial Outlook FY 2013
C L I N I C A L T R I A L S COGSTATE CT For personal use only FINANCIAL OUTLOOK FY 2013 US$6.4m of sales contracts since 1 July 2012 (up 56% compared to the same period last year) A$8.5m of revenue secured by contract for the FY13 year (up 33% on the same period last year) Improved sales contracts e
Slide 42: FY2013 Key Milestones
FY2013 For personal use only KEY MILESTONES CLINICAL TRIALS PROFITABILITY AXON SPORTS LAUNCH OF CONSUMER PRODUCTS AXON SPORTS CORPORATE PARTNERSHIPS INITIAL COMMERCIALISATION DATA FOR COGNIGRAM IN CANADA CONTINUED ADVANCEMENTS IN SCIENCE IN AD AND INCREASED USE OF COGSTATE BY SCIENCE LEADERS INVESTO
Slide 43: For personal use only
For personal use only ASSESS • MONITOR • IMPROVE