Brainsway Ltd · TASE:BWAY
Brainsway — Investor Presentation (October 2018)
22 slides from Brainsway's investor presentation, October 2018
Slide 1: A new era in brain disorder treatment
BRIN.TA A new era in brain disorder treatment Corporate Presentation October 2018
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION OF BRAINSWAY LTD. (“BRAINSWAY”) DOES NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN INFORMATION PERTAINING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE RELIED UPON FOR MAKING ANY COLLABORATION DECISION WITH RESPECT TO BRAINSWAY. THE INFORMATION PROVIDED HERERIN IS PROVIDED
Slide 3: Corporate Highlights
Corporate Highlights Corporate summary Platform • IPO on TASE in 2007 Technology • Israel and New Jersey operations 95% reimbursement (US) • 83 employees MDD treatments Regulatory approvals • FDA: Cleared for MDD (510(k)) + OCD – DE Novo Robust clinical pipeline: Smoking cessation, PTSD, • CE: MDD,
Slide 4: Psychiatrists' Tools Have Not Changed in 50 Years
Psychiatrists’ Tools Have Not Changed in 50 Years Psychotherapy Era Pharmacotherapy Era TMS Era ~1900-1960 1960’s - Present 1985 - Future 4
Slide 5: What is Transcranial Magnetic Stimulation (TMS)?
What is Transcranial Magnetic Stimulation (TMS)? An electromagnetic coil is placed over 1 the scalp A very fast current 2 is produced in the coil Electromagnetic 3 field is induced in the brain Field is sufficient to depolarize cortical neurons 4 and activate neural networks to instigate treatment 5
Slide 6: BrainsWay Deep TMS is an Established Treatment for Depression and Other Brain Disorders
BrainsWay Deep TMS is an Established Treatment for Depression and Other Brain Disorders Non-invasive 4 - 5 weeks to complete treatment Safe, well-tolerated Only 20 min per and effective session Outpatient, with Endorsed by KOLs no anesthesia and top strategic research partners 6
Slide 7: Deep TMS Has Key Advantages Against Available Focal TMS Solutions
Deep TMS Has Key Advantages Against Available Focal TMS Solutions Focal TMS Deep TMS- Brainsway Focal TMS Depth 2.5-3cm Limited depth Neuron activation Small Extensive BrainsWay’s Structures Superficial Deep and Deep TMS treated broad Prone to Reliable Geometrical targeting errors targeting features
Slide 8: Only Technology to Treat a Wide Range of Brain Disorders
Only Technology to Treat a Wide Range of Brain Disorders We are positioned to become the gold standard modality for non-invasive neuromodulation Cognition and Alzheimer’- PFC PTSD – PFC1 ADHD - PFC Smoking & Alcohol - Insula Multiple sclerosis – MC4 MDD – DLPFC2 Psychiatry Neurology OCD – ACC3 8 1.
Slide 9: Major Depressive Disorder (MDD) Market
Major Depressive Disorder (MDD) Market 15M Adult MDD Patients (US Only) (1) 4.5M Adult MDD patients who have not achieved remission from one or more prior antidepressant medications 4M Adult MDD patients with commercial insurance or Medicare coverage $8B Total US market revenues opportunity (2) 9 (1
Slide 10: Obsessive Compulsive Disorder (OCD) Market
Obsessive Compulsive Disorder (OCD) Market 2.24M 12-month prevalence (1) 820K Treatment seekers Treatment–resistant 410K seekers Total US market $800M revenues opportunity (2) 10 (1) The National Institute of Mental Health : www.nimk.nih.gov; (2) based on RSM model of ~$70M per session
Slide 11: Our Pipeline – 4-year clinical timeline
Multicenter trial, under FDA guidelines Our Pipeline – 4-year clinical timeline Interim analysis FDA evaluation 2018 2019 2020 2021 No. of Patients (MM-US)(*) Smoking Cessation Submit 38M N=234 to FDA PTSD Submit 13M N=166 (Interim=92) to FDA Bipolar Depression Submit 6M N=236 to FDA Submit 2M Opioi
Slide 12: Ongoing Smoking Cessation and PTSD Multicenter Studies
Ongoing Smoking Cessation and PTSD Multicenter Studies Smoking Cessation Post Traumatic Stress Disorder • 232 patients were already • 51 patients were randomized randomized out of 234 out of 176 • 146 subjects completed the study • 3 sessions per week for 4 weeks out of 164 2 booster sessions at wee
Slide 13: Additional Indications (US patients population)
Additional Indications (US patients population) Opioid abuse Post stroke Multiple sclerosis 2 million are 795,000 suffer a 1 million people dependent stroke annually living with MS 13
Slide 14: Flexible Business Model
Flexible Business Model 01 Direct purchase - ~25% 02 Lease - ~ 70% MDD Risk share model - ~5% 03 Pay per use OCD with Risk share model only 14
Slide 15: The Benefits of Our Leasing Model and Commercial Strategy
The Benefits of Our Leasing Model and Commercial Strategy Leasing, sale and profit-sharing models offer flexible solutions to best meet physician’s preferences Typical lease duration is 4 years Leasing model reduces upfront capital commitment for physicians Creates long-term stable revenue stream fo
Slide 16: ROW Growth Potential
ROW Growth Potential Europe China • 83M Mental disorder • 41M Anxiety patients patients including 12M • 55M Depression patients Depression patients and 16M Anxiety patients Japan • 2.4M depression patients • Signed a binding exclusive distribution agreement India • 56M Depression patients • 38M Anxi
Slide 17: Growth Strategy
Growth Strategy Short term Long term • MDD: Significant expansion • Neurological indications • OCD: Launched Q3/18 (e.g. MS, Post Stroke) • Pipeline: PTSD, smoking cessation • Technology: Multi channel stimulator, Deep TMS with EEG: personalized treatment • New territories: China, India, EU 17
Slide 18: Q2 2018 Review
Q2 2018 Review ~$3.7m $11.6m Revenue Cash Balance $2.4M in Q2-17 [+57%] $14.5M in Q4- 17 $29.3m $1.0m Backlog Operating loss $4.5m generated in Q2 ($1.8m) in Q2 -17 86 Head Count 83 in Q1 -18 18
Slide 19: Quarterly Revenue Growth ($M)
Quarterly Revenue Growth ($M) 3.60 3.61 3.71 3.02 1.45 1.69 1.53 2.38 2.15 1.29 0.79 Sale 0.70 Lease 2.26 1.91 2.08 1.59 1.72 1.45 Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1- 2018 Q2- 2018 19
Slide 20: A new era of brain disorder treatment is finally here
A new era of brain disorder treatment is finally here 20
Slide 21: Results of Operations
Results of Operations Income Statements 12 months 6 months period 3 months period period H1 H1 Q2 Q2 Year ($ in thousands) 2017 2018 % 2017 2018 % 2017 Revenues 4,527 7,331 62% 2,379 3,726 57% 11,145 Cost of revenues 1,003 1,559 55% 556 862 55% 2,595 Gross margin 3,524 5,772 64% 1,823 2,864 57% 8,55
Slide 22: Forward-looking information (Hebrew disclaimer)
מידע צופה פני עתיד מצגת זו של בריינסווי בע"מ )"בריינסווי"( לא נועדה לתת תיאור כולל ומלא של פעילות החברה או של הנושא המרכזי של המצגת באופן מפורט ואינה יכולה להוות בסיס עבור קבלת החלטה על שיתוף פעולה כלשהו עם בריינסווי. מצגת זו נערכה בעיקרה לשם הנוחות .על מנת לקבל תמונה מלאה על בריינסווי ופ