Atricure, Inc. · NASDAQ:ATRC
Atricure — Investor Presentation (May 2022)
33 slides from Atricure's investor presentation, May 3, 2022
Slide 1: AtriCure Investor Presentation: Creating a World Class Afib Platform
© 2022 AtriCure, Inc. All rights reserved. AtriCure Investor Presentation Creating a World Class Afib Platform Exhibit 99.2
Slide 2: Forward Looking Statements
This presentation and oral statements made in connection with this presentation contain “forward-looking statements,” which are statements related to future events that by their nature address matters that are uncertain. Forward-looking statements address, among other things, AtriCure’s expected mar
Slide 3: Non-GAAP Financial Measures
© 2022 AtriCure, Inc. All rights reserved.3 Non-GAAP Financial Measures To supplement AtriCure’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, AtriCure provides certain non-GAAP financial mea
Slide 4: Large Markets, Strong Portfolio, Bright Future
© 2022 AtriCure, Inc. All rights reserved. Large Markets Addressing an underserved and growing patient population Strong Portfolio Existing products and solutions driving consistent growth Bright Future Novel therapies supported by growing body of clinical evidence 4 We are passionately focused on r
Slide 5: Afib: a Serious Problem
Afib: a Serious Problem Atrial Fibrillation (Afib) is an irregular heartbeat (or arrhythmia) that affects more than 33 million people worldwide.1 Approximately 1.2 million Afib diagnoses annually in the US.2 1 in 4 adults over 40 will develop Afib in their lifetime.3 © 2022 AtriCure, Inc. All rights
Slide 6: Significant Global Market Opportunity
Significant Global Market Opportunity © 2022 AtriCure, Inc. All rights reserved. US market opportunity $3B+ annually 6 International market opportunity $2B+ annually International Market Focus • Penetration of large markets first • Expand product availability • Improve market access via reimbursemen
Slide 7: Two Distinct Patient Profiles
Concomitant Open Procedures (Ablation/LAAM) Two Distinct Patient Profiles © 2022 AtriCure, Inc. All rights reserved. STRUCTURAL HEART ISSUE Surgery required – Afib corrected at same time (Valve, CABG) NO STRUCTURAL ISSUE Afib is primary concern Intervention is better choiceMedicine is effective Paro
Slide 8: US Market Opportunity
$350M Pain Management Procedures (Ablation) $2B+ and growing Standalone Hybrid Procedures (Ablation/LAAM) $700-800M Concomitant Open Procedures (Ablation/LAAM) US Market Opportunity © 2022 AtriCure, Inc. All rights reserved. Medicine is effective 8 Steady Growth in penetration of Cardiac Surgery Mar
Slide 9: AtriCure: A Decade of Progress
EPi-Sense® Guided Coagulation System approved by FDA for treatment of long-standing persistent Afib Expanded labeling for Cryo Nerve Block Therapy in adolescents 510k clearance of EnCompass® clamp Impacting more than 300,000 patients worldwide. © 2022 AtriCure, Inc. All rights reserved. 9 AtriCure:
Slide 10: 2022 Priorities: Driving Therapy Expansion
Standalone Hybrid Procedures Pain Management Concomitant Open Procedures © 2022 AtriCure, Inc. All rights reserved. 10 2022 Priorities: Driving Therapy Expansion Launch EnCompass Clamp in U.S. Initiate clinical trial for LAAM in cardiac surgery Grow commercial team globally; continue awareness Train
Slide 11: CONVERGE: Long-standing Persistent Afib Patient Analysis
• Superior outcomes with hybrid Convergent procedure when compared to endocardial catheter ablation alone in patients with drug refractory long-standing persistent Afib • Data for long-standing persistent patients in the trial demonstrated compelling efficacy and durability • Improved EP lab efficie
Slide 12: Benefits of the EPi-Sense System and Hybrid AF Therapy
Benefits of the EPi-Sense System and Hybrid AF Therapy Benefits based on 7-day continuous rhythm monitoring at 18-months post procedure © 2022 AtriCure, Inc. All rights reserved.12 ≥90% LESS TIME IN AF For most patients at 1 year Epicardial: Outside the heart Endocardial: Inside the heart TRIGGER AR
Slide 13: Commercial Strategy for the EPi-Sense System
Commercial Strategy for the EPi-Sense System © 2022 AtriCure, Inc. All rights reserved.13 TARGET Drive utilization with existing and new sites BUILD Train and develop programs, build referral channel AMPLIFY Spread awareness of Hybrid AF Therapy to patients LEVERAGE Add AtriClip to Hybrid AF Therapy
Slide 14: Innovative and Expanding Product Portfolio
Innovative and Expanding Product Portfolio © 2022 AtriCure, Inc. All rights reserved. Ablation LAA Management EPI-SENSE® DEVICE ATRICLIP PRO•V® DEVICE ATRICLIP FLEX•V® DEVICE cryoICE® CRYOABLATION PROBE ISOLATOR® SYNERGY™ CLAMP ATRICLIP® FLEX DEVICE ATRICLIP PRO® DEVICE cryoSPHERE® CRYOABLATION PROB
Slide 15: Spotlight: Cryo Nerve Block for Pain Management
HIGHLIGHTS • cryoICE® probe made available for Cryo Nerve Block applications in 2015 • Dedicated commercial team established in 2019 and expanding • Q1 2019 launch of cryoSPHERE® probe • Label expansion includes adolescent patients as young as 12 years of age • ~8% of worldwide revenue in 2021, up f
Slide 16: Spotlight: Isolator Synergy EnCompass Clamp
HIGHLIGHTS SPOTLIGHT: Isolator Synergy EnCompass® Clamp © 2022 AtriCure, Inc. All rights reserved. 16 • FDA 510(k) clearance in July 2021 • Limited initial release began 3Q 2021 • Broad commercial launch in U.S. April 2022 • Continue to drive penetration of cardiac surgery market Product Overview •
Slide 17: HEAL-IST Overview
HEAL-IST Overview PRIMARY ENDPOINTS Effectiveness Freedom from IST at 12-months. Freedom from IST is defined as mean heart rate of ≤ 90bpm or at least a 15% reduction in mean heart rate as compared to baseline, in the absence of new or higher dosage of previously failed medications. Safety Incidence
Slide 18: LeAAPS Overview
LeAAPS Overview PRIMARY ENDPOINTS Effectiveness First occurrence of ischemic stroke or systemic arterial embolism. Safety Incidence of safety events through 30-days to demonstrate no increase in risk with LAA exclusion during cardiac surgery. STUDY DESIGN Summary Multi-center, prospective, randomize
Slide 19: AtriCure Pillars
© 2022 AtriCure, Inc. All rights reserved. AtriCure Pillars Foundation of our past and strengthening our future Innovation Increasing pipeline to drive LAAM penetration and build MIS market Clinical Science Hybrid AF Therapy proven by CONVERGE trial: a complimentary and differentiated approach for a
Slide 20: History of Strong Growth
History of Strong Growth © 2022 AtriCure, Inc. All rights reserved. History of Consistent Revenue Growth pre-COVID19 5-Year historical organic revenue CAGRs: • U.S. AtriClip ~32% • U.S. Open Ablation ~11% excluding Pain Management (cryoSPHERE) • U.S. MIS Ablation ~8% • International ~10% 20 COVID19
Slide 21: First Quarter 2022 Financial Highlights
$59.3 $74.6 Q1 2021 Q1 2022 $73.2 $74.6 Q4 2021 Q1 2022 GROSS MARGIN First Quarter 2022 Financial Highlights © 2022 AtriCure, Inc. All rights reserved.21 KEY METRICS* 75.1% 74.5% Q1 2021 Q1 2022 ($4.7M) ($4.2M) ($0.32) ($0.33) WORLDWIDE REVENUE* ($M) ADJUSTED EBITDA-S** ADJ. LOSS PER SHARE** 2% 26%
Slide 22: Change in Revenue Presentation
Change in Revenue Presentation © 2022 AtriCure, Inc. All rights reserved.22 Summary of Changes Presentation of revenue aligns with current product line offerings. Changes implemented in Q1 2022 include: • Pain Management revenue (sales of cryoSPHERE probe), historically included in Open ablation rev
Slide 23: An Exciting Future Ahead
An Exciting Future Ahead LARIAT contribution © 2022 AtriCure, Inc. All rights reserved.23 ACCELERATING GROWTH IN EP LANDSCAPE Hybrid AF Therapy EXPANDING WITH PAIN MANAGEMENT COMPREHENSIVE PLATFORM OF THERAPIES for differentiated population of Afib patients Surgical Ablation || AtriClip Cryo Nerve B
Slide 24: Thank You!
Thank You! © 2022 AtriCure, Inc. All rights reserved.24
Slide 25: Supplemental Information
Supplemental Information References for any comments, statistics, or figures in this presentation are available upon request. © 2022 AtriCure, Inc. All rights reserved.25
Slide 26: Key Investment Rationale
Key Investment Rationale © 2022 AtriCure, Inc. All rights reserved. Large Markets Addressing an underserved and growing patient population • Approximately 33 million Atrial Fibrillation patients globally, with majority having advanced forms of the disease1 • Multibillion dollar annual market opportu
Slide 27: COVID-19 Response
COVID-19 Response © 2022 AtriCure, Inc. All rights reserved. Positioning AtriCure for long-term growth • Maintaining manufacturing, assembly, fulfillment – modified to adhere to safety recommendations • Continuing case coverage support • Utilizing online and mobile training venues to educate our cus
Slide 28: US Concomitant Market Opportunity
• US annual cardiac surgery volume steady over the past 5 years with shifts in procedure types10 • Pre-Op Afib occurs frequently in cardiac surgery patients11 • New onset Post-Op Afib is a well-documented complication of cardiac surgery, even if patients do not present with pre-op Afib12 US Concomit
Slide 29: US Standalone Market Opportunity
US Standalone Market Opportunity © 2022 AtriCure, Inc. All rights reserved. Market opportunity in analysis at left considers: • Addition of ablation and LAAM to existing catheter ablation procedures − Catheter ablation procedures have grown 10-15% annually15 • Incremental penetration of advanced Afi
Slide 30: CONVERGE Overview
CONVERGE Overview PRIMARY ENDPOINTS Effectiveness Primary efficacy endpoint is success or failure to be AF/AT/AFL-free absent class I and III AADs except for a previously failed or intolerant class I or III AAD with no increase in dosage following the 3 month blanking period through the 12 months po
Slide 31: Hybrid AF Therapy: the Convergent Procedure
Hybrid AF Therapy: the Convergent Procedure © 2022 AtriCure, Inc. All rights reserved.31
Slide 32: The Cox-Maze IV Procedure
The Cox-Maze IV Procedure © 2022 AtriCure, Inc. All rights reserved.32
Slide 33: References and Abbreviations
References and Abbreviations © 2022 AtriCure, Inc. All rights reserved.33 Note Reference 1 Worldwide Epidemiology of Atrial Fibrillation: A Global Burden of Disease 2010 Study 2 The American Journal of Cardiology (2013), 112: 1142-1147 3 Lifetime risk for development of atrial fibrillation. Circulat