Cyclopharm Limited · ASX:CYC
Cyclopharm — Investor Presentation (May 2024)
27 slides from Cyclopharm's investor presentation, May 24, 2024
Slide 1: Capital Raising for USA Growth Strategy
Capital Raising for USA Growth Strategy 24 May 2024 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Cyclopharm Limited ACN 116 931 250 performance are also forward-looking statements. (Cyclopharm). It contains general information about Cyclopharm as at the date of this presentation. This presentation and the information contained in it is strictly
Slide 3: Disclaimer
Disclaimer Macquarie Capital (Australia) Limited and Bell Potter Securities Limited, as lead managers to the Placement, together with their respective related bodies corporate, shareholders or affiliates and their respective officers, directors, employees, affiliates, agents or advisers (each a Limi
Slide 4: Transaction overview
Transaction overview • The USA represents the single largest market for Technegas® with half of the world’s nuclear medicine departments • Estimated initial addressable market of ~US$90m per annum representing the current annual market for pulmonary embolism diagnosis US market procedures conducted
Slide 5: Technegas® around the world
Technegas® around the world Technegas® was introduced to the medical community in 1986 Technegas® generators are available in 65 countries via a combination of direct and distributor sales models Over 4.7 million patient procedures to date 5
Slide 6: Technegas® Aerosol for Inhalation
Technegas® Aerosol for Inhalation Functional imaging of Oxygen distribution within the lung Technegas® is composed of 99mTc cores encapsulated within layers of graphite to form individual hexagonal plate-like particles.1-2 Technegas is manufactured by heating Technetium-99m in a carbon crucible with
Slide 7: Overview of the Technegas® Plus System, Patient Consumables and package insert
Overview of the Technegas® Plus System, Patient Consumables and package insert USA INDICATIONS AND USAGE TECHNEGAS, when used with sodium pertechnetate Tc 99m in the Technegas Plus System, provides technetium Tc 99m- labeled carbon inhalation aerosol (Technegas Aerosol), a radioactive diagnostic age
Slide 8: Cyclopharm Investment Case
CYCLOPHARM INVESTMENT CASE Profitable and First in Class USFDA Approval Granted Recurring Revenue Technegas Product expansion Growing MedTech Established Gold Standard Set to quadruple the size From single patient Indications Beyond PE into Underlying business Proprietary product of the existing PE
Slide 9: 2023 Trading Highlights and Underlying Business
2023 Trading Highlights and Underlying Business An established global nuclear medicine company Cyclopharm 2023 Trading Highlights Cyclopharm operating revenues over time Technegas Third party sales 30.0 Technegas Sales increased 5.6% to $14.4m 26.3 25.0 Third Party $11.9m of third‐party distribution
Slide 10: Overview of the US market opportunity
Overview of the US market opportunity 600K Nuclear Medicine Ventilation Procedures p.a. in the USA* 15%/600k Estimated 4,000,000 pulmonary embolism procedures in the USA p/a 1 (15% Nuclear Medicine / 85% CTPA) 2 ~600,000 (15%) Nuclear Medicine procedures represents an initial US$90m addressable mark
Slide 11: US Economic Model
US Economic Model Placement Model to Expedite Consumable Demand US$7k one-off installation and System Placement model supports rapid uptake training fee by US customers by removing the initial capital outlay to drive implementation of the US$7k p.a. technology fee, technology Initial focus on clinic
Slide 12: Track Record - Rapid adoption of Technegas®
Track Record - Rapid adoption of Technegas® The Canadian Case Study - a strong indicator of USA acceptance Canada is Cyclopharm’s largest single country 1 market to date Technegas® is market leader for diagnosing PE 2 and is nearing 100% nuclear medicine market share 3 Xe-133 rapidly displaced by ea
Slide 13: US Customer Demand Established
US Customer Demand Established 136 Proposals and Contracts representing over 400+ locations 1 Over 420 expressions of interest already received 2 6 Technegas systems have been installed and are delivering Revenue; 6 further sites under contract 3 Additional 40 sites linked to the first 12 locations
Slide 14: Upcoming Milestones and Growth Catalysts
Technegas commercial launch at the First North American Society of Nuclear Medicine and Molecular Imaging (SNMMI) conference since FDA approval June 2024 Market expansion beyond CYC’s 65 Upcoming established country markets Milestones and Pass Through status approval expected to accelerate gro
Slide 15: Total value creation opportunity
Total value creation opportunity Exponential Growth Opportunity Over The Next Decade USA PE Pulmonary Embolism: Timeline Market Share Market size Horizon 1 – Full displacement of existing 1 nuclear medicine tests for PE 0 - 5 years 15% US$90m Horizon 2 – Commence converting CTPA exams 2 to Technegas
Slide 16: Beyond PE applications of V/Q SPECT(/CT)
Beyond PE applications of V/Q SPECT(/CT) >US$1.1bn global market size* Diagnosis and Advanced approach Preoperative Preoperative Planning Use of alternate follow-up of to phenotyping chronic assessment of assessment of radiation therapy isotopes to make Pulmonary airways diseases such homogeneous lu
Slide 17: Capital raising, use of proceeds
Capital raising, use of proceeds Sources A$m 1 Working capital for US expansion to fund Technegas System manufacture, regulatory Proceeds from Institutional Placement A$20.0m support and operations Total sources of funds A$20.0m Company expects to reach positive net 2 operating cash flows during H2
Slide 18: Offer Details
Offer Details Cyclopharm is today announcing a placement to sophisticated and professional and other institutional investors to raise A$20.0m by way of an institutional placement (Placement) Placement Approximately 14.1 million new shares will be issued under the Placement (New Shares) equivalent to
Slide 19: Placement and SPP Timetable
Placement and SPP Timetable Trading halt and Announcement of Placement and SPP Friday, 24 May 2024 Placement bookbuild Friday, 24 May 2024 Announcement of outcome of Placement and trading resumes Monday, 27 May 2024 Settlement of Placement Shares Wednesday, 29 May 2024 Placement Allotment of new sha
Slide 20: Cyclopharm Specific Risks
Cyclopharm Specific Risks Regulatory Future expansion of Cyclopharm’s range of products and services may be governed by regulatory controls in each target market and it is not possible for Cyclopharm to guarantee that approvals in all target markets will be obtained and maintained in the future. The
Slide 21: Cyclopharm Specific Risks (cont.)
Cyclopharm Specific Risks (cont.) Competition The medical equipment/drug industry is very competitive and characterised by large international companies supplying much of the global market requirements. The emergence of new and/or unauthorised generic technologies could in certain circumstances make
Slide 22: Cyclopharm Specific Risks (cont.)
Cyclopharm Specific Risks (cont.) Key product reliance risk The Company expects to derive a substantial portion of its revenue in the foreseeable future from sales of Technegas . Cyclopharm's ability to generate revenue will therefore depend largely on how effectively it can market and distribute Te
Slide 23: Cyclopharm Specific Risks (cont.)
Cyclopharm Specific Risks (cont.) Intellectual Property Rights The Cyclopharm Group’s success may be affected by its ability to maintain patent protection for products and processes, to preserve its trade secrets and to operate without infringing the proprietary rights of third parties. There is a r
Slide 24: Cyclopharm Specific Risks (cont.)
Cyclopharm Specific Risks (cont.) Currency and exchange rate fluctuations The financial contribution to the Cyclopharm Group of the Technegas System will depend on the movement in exchange rates between the Australian dollar and a number of foreign currencies, particularly the Euro. The exchange rat
Slide 25: Cyclopharm Specific Risks (cont.)
Cyclopharm Specific Risks (cont.) Dependence on general economic conditions The operating and financial performance of the Company is influenced by a variety of general economic and business conditions, including levels of consumer spending, inflation, interest rates and exchange rates, access to de
Slide 26: International Offer Jurisdictions
International Offer Jurisdictions This document does not constitute an offer of new ordinary shares (New Shares) in Cyclopharm in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offered or sold, in a
Slide 27: International Offer Jurisdictions (cont.)
International Offer Jurisdictions (cont.) Singapore This presentation and any other materials relating to the New Shares have not been , and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this presentation and any other document