Inogen, Inc · NASDAQ:INGN
Inogen — Investor Presentation (January 2019)
27 slides from Inogen's investor presentation, Jan 7, 2019
Slide 1: Company Overview January 2019
Company Overview January 2019 Exhibit 99.1
Slide 2: Notice regarding forward-looking statements
Notice regarding forward-looking statements These slides and the accompanying oral presentation (the “Presentation”) include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on current expectations, estimates and projections based
Slide 3: Inogen POC offers freedom and mobility
Inogen POC offers freedom and mobility Stationary oxygen concentrator + Regular oxygen tank delivery Delivery Model Inogen Model 2.8 pounds (single battery) Run time up to 5 hours with a double battery A/C adaptable Conforms to all applicable FAA requirements Suitable for overnight use Portable oxyg
Slide 4: Traditional O2 therapy challenged by market dynamics
Traditional O2 therapy challenged by market dynamics Traditional O2 P Inogen Cost effective Maximizes mobility P P O O O Relevance today ~50% reduction to Medicare reimbursement rates Oxygen delivery has high fixed and variable costs Ambulatory O2 à 2x survival; 60% fewer hospital days1 1 day hospit
Slide 5: Large, growing addressable oxygen therapy market
Large, growing addressable oxygen therapy market Attractive global market opportunity COPD is the 3rd leading cause of death in the U.S. behind heart disease and cancer ³ Within 15 years COPD is expected to be the leading cause of death globally ͯ COPD affects an estimated 210 million individuals wo
Slide 6: U.S. macro trends provide tailwind for growth
U.S. macro trends provide tailwind for growth Senior population + ‘smoking bubble’ provide tailwind to growth The 65 years + group is expected to increase 3% annually through 20251 The 65 years + group is expected to account for 19% of the total population by 2025, up from 15% in 20151 The leading c
Slide 7: U.S. beneficiaries shifting to Medicare Advantage
U.S. beneficiaries shifting to Medicare Advantage Enrollment in Medicare Advantage outpacing Medicare Medicare Advantage patients are not included in CMS data People can enroll in Medicare Advantage by either enrolling when they first become Medicare-eligible or by switching from traditional Medicar
Slide 8: U.S. long-term oxygen therapy market, 2017
U.S. long-term oxygen therapy market, 2017 Billable vs. Capped Patient Population Based on CMS’s review of Medicare claims, ~25% of beneficiaries reach the 36th month of oxygen services and enter the capped period¹ The number of Inogen patients in the cap represent ~18%3 Once a patient enters the ca
Slide 9: U.S. penetration of portable oxygen concentrators
U.S. penetration of portable oxygen concentrators POCs remain under penetrated Based on 2017 U.S. Medicare claims data, ambulatory patients account for 73% of total LTOT patients. Inogen estimates a full POC penetration rate to be 90% of the existing ambulatory patient population, or 65% of the tota
Slide 10: Product performance drives leadership position
Product performance drives leadership position Light weight POC Ultra Light weight POC Light weight POC Inogen One G5® Inogen One G4® Inogen One G3® Launch Date Expected First Half 2019 May 2016 September 2012 Minimum Advertised Retail Price TBD $2,295 $2,295 O2 capacity 1,260 ml/min 630 ml/min 1,05
Slide 11: Building the Inogen brand
Building the Inogen brand Targeted advertising Consumer preference Domestic direct-to-consumer sales ($M) Domestic business-to-business sales ($M) +69.5% POP +40.9% YOY +48.2% POP +47.3% YOY ($M) Founded in patient preference
Slide 12: Patient preference and reimbursement driving conversion to POCs
Patient preference and reimbursement driving conversion to POCs Penetration of POCs (based on Medicare)1 Domestic business-to-business sales ($M) Average total monthly reimbursement Note 1: Based on 2017 U.S. Medicare claims data and our estimates of the ratio of the Medicare market to the total mar
Slide 13: Globally diversified revenue
Globally diversified revenue Sales in 47 countries Growing worldwide demand 2017 Revenue: $249.4M 1Q-3Q 2018 Revenue: $271.6M
Slide 14: Track record of growth
Track record of growth Revenue ($M) CAGR: 44.8% ¹2018 estimated revenue of $350M based on the midpoint of guidance provided in the Company’s press release dated November 6, 2018 of $345M - $355M. This outlook represents the Company’s guidance only as of that date. ²2019 estimated revenue of $435M ba
Slide 15: Growth in strong operating profits
Growth in strong operating profits % Operating Margin 2015 2016 2017 2018E¹ 2019E² 9.5% 11.3% 11.1% 10.3% 11.0% +20.7% YOY +33.3% YOY +51.9% YOY ¹2018 operating income of $36M based on the midpoint of guidance provided in the Company’s press release dated November 6, 2018 of $35M - $37M. This outloo
Slide 16: Balance sheet overview
Balance sheet overview [Insert object title] Summary as of September 30, 2018 Cash, cash equivalents & marketable securities on hand $223.9M Debt $0.0M No additional capital requirements to meet plan* Positive Cash flow* Maximizes flexibility* 2018 & 2019 Expectations *2018 and 2019 expectations are
Slide 17: Multiple avenues to drive future growth
Multiple avenues to drive future growth Expansion of direct-to-consumer network Increase domestic B2B adoption Increase international B2B adoption 446 inside sales reps* 20 outside physician sales & support team members* 333 Cleveland-based employees. Expect to have 500 by year-end 2019 ( >2/3rds sa
Slide 18: Company highlights
Company highlights Market leader in large, growing, underpenetrated market DTC model enables innovation and customer access Differentiated product portfolio with commitment to R&D Seasoned management team with proven track record Attractive financial profile
Slide 19: Proprietary and
Proprietary and Confidential
Slide 20: Supplemental Information January 2019
Supplemental Information January 2019
Slide 21: Design expertise & intellectual property
Design expertise & intellectual property 33 patents issued System design and assembly Control systems Advanced compressor technologies Sieve bed designs and life prediction 8 pending patent applications POC design improvements Improved user replaceable sieve bed designs Trade secrets & know-how Auto
Slide 22: Average non-delivery ambulatory monthly rates
Average non-delivery ambulatory monthly rates 233 136 134 We believe lower reimbursement rates will drive conversion to non-delivery solutions POCs still 20% premium monthly reimbursement compared to tanks in 36 month rental period New Competitive Bidding rule to set reimbursement based on maximum w
Slide 23: Inogen At Home: continuous innovation
Inogen At Home Continuous innovation to stay at the forefront of customer preference Oct-04 Release Inogen One Inogen One G2 Inogen One G3 Sep-12 Release 32% lighter than G2 Nov-13 Update Oct-14 Release Dec-15 Update Pipeline Inogen One G5 Customer Preference Low Service Cost Low Cost to Own Jun-06
Slide 24: Key regulatory approvals
510(k) clearance by the FDA FDA registered manufacturing facilities Conforms to all applicable FAA requirements for use on commercial aircraft Quality Management System certified to comply with ISO 13485 for the design, development, manufacture, distribution and service of oxygen concentrators and a
Slide 25: A proven team built for success
A proven team built for success Ali Bauerlein Chief Financial Officer, Executive Vice President, Finance, Corporate Secretary & Corporate Treasurer Scott Wilkinson President, Chief Executive Officer, BOD Member Co-founder of Inogen with over 15 years experience in treasury, finance, accounting, risk
Slide 26: 2018 guidance
2018 guidance ¹2018 estimated revenue of $350M based on the midpoint of guidance provided in the Company’s press release dated November 6, 2018 of $345M - $355M. ²2018 estimated GAAP net income of $47M based on the midpoint of guidance provided in the Company’s press release dated November 6, 2018 o
Slide 27: 2019 guidance
2019 guidance ¹2019 estimated revenue of $435M based on the midpoint of guidance provided in the Company’s press release dated November 6, 2018 of $430M - $440M. ²2019 estimated GAAP net income of $50M based on the midpoint of guidance provided in the Company’s press release dated November 6, 2018 o