Koru Medical Systems, Inc. · NASDAQ:KRMD
Koru Medical Systems — Q3 2023 Earnings Presentation
17 slides from Koru Medical Systems's earnings presentation, Nov 8, 2023
Slide 1: KORU Medical Systems Q3 2023 Earnings Call
KORU Medical Systems Q3 2023 Earnings Call November 8, 2023 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 regarding our expectations for future performance, including but not limited to our 501(k) clearance, Japan
Slide 3: Third Quarter Financial Updates and Continued Momentum with our Growth Strategy
Third Quarter Financial Continued Momentum with our Growth Updates Strategy 1 Solid Domestic Core business growth continues to outpace underlying market • Third quarter net revenue 10% decline versus prior year • Novel Therapies impacted 2 Continued to grow our Novel Therapies pipeline, primarily by
Slide 4: Q3 Progress on Strategic Growth Pillars
Q3 Progress on Strategic Growth Pillars Grow Leadership Position in Expand to Novel Therapies Geographic Expansion Domestic Core SCIg Outperforming market in 1 new collaboration closed in Q3 2023, +12% YTD y/y International Core Domestic Core business 15 closed collaborations in total growth +6% YTD
Slide 5: Market Trends Reaching Inflection – KRMD Outperforming the Domestic Core Market
Market Trends Reaching Inflection – KRMD Outperforming the Domestic Core Market Ig Drug and Script Market Trends KRMD Domestic Core Growth & Trends 20.0% $8.0 15.0% $7.0 10.0% $6.0 5.0% $5.0 0.0% -5.0% $4.0 -10.0% $3.0 -15.0% $2.0 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 (1) SCIg Drug Market Growth
Slide 6: KORU PFS Leadership will Drive Increased Share and Potential for Higher Subcutaneous Penetration
KORU PFS Leadership will Drive Increased Share and Potential for Higher Subcutaneous Penetration KRMD earlier 510k clearance facilitated tripling of The Freedom System significantly prefilled penetration improves the patient experience (2) • Freedom60 with PFS is preferred 500 15.0% by 78% of patien
Slide 7: Q3 Added One New Collaboration
Q3 Added One New 1 Collaboration $2.5B TAM(1) | 2M(2) Global Patient 15 Total Collaborations | +1/-1 in Q3 2023 18 Open Opportunities | +3 in Q3 2023 Population Expanded Indications to Patient Population Current Label (Ig) (000’s) Phase I Phase II Phase III Launch Date Immunology /Neurology 630 2024
Slide 8: Strong Recurring Revenue in Core Business, Future Growth Opportunities Through Novel Therapies
Strong Recurring Revenue in Core Business, Future Growth Opportunities Through Novel Therapies KRMD 1-3 Years to 3+ Years to 5+ Years to Today Launch Launch Launch 8 Commercialized 5 collaborations 6 collaborations 3 collaborations Drugs e 4 Immunology / Neurology 3 Immunology (SCIg) 1 Gastroenterol
Slide 9: Q3 Progress on Geographic Expansion
Q3 Progress on Geographic Expansion Grow Leadership Position in Geographic Expansion Expand to Novel Therapies Domestic Core SCIg +12% YTD y/y International Core Outperforming market in Domestic 1 new collaboration closed in Q3 2023, Core business 15 closed collaborations in total growth +6% YTD y/y
Slide 10: Innovation Growing our Subcutaneous Leadership Position in Ig and Novel Therapies
Innovation Growing our Subcutaneous Leadership Position in Ig and Novel Therapies Value Proposition 2021-2022 2023 2024 2025-2026 Next generation Ig New Products pump platform (Comfort, Freedom60 pump line Next generation Novel Convenience, extension (Q4) Therapies pump Connected) Consumables 510k p
Slide 11: Q3 YOY Revenue by Business
Q3 YOY Revenue by Business Net Sales; Novel Therapies In Millions • Decreased 79% y/y related to a large clinical trial order in the prior year and timing of $7.8 collaborations $0.8 (10%) $7.0 $0.2 Domestic Core $1.1 $1.1 • Decreased 2% y/y, +6% YTD Back Order $0.3 • Lower consumable volumes as com
Slide 12: Improving Gross Margin Profile
Improving Gross Margin Profile Maintaining Gross Margin Guidance: Exit 60-62% Full Year 58-60% Q3 62.0% • Margin improvement driven by increased manufacturing efficiencies from site closure and outsourcing. • Achieved high end of 2H ‘23 Gross margin guidance +60% Exit Q4 60-62% 58%-60% 56.1% 62.0% 5
Slide 13: Strategic Operating Expense Discipline to Achieve Breakeven
Strategic Operating Expense Discipline to Achieve Breakeven Applying operating expense discipline to ensure runaway toward cash flow break even Operating Expenses Net Loss (excluding non-cash items) In Millions In Millions • Disciplined strategic spending on operating expense through $15.0 $- short
Slide 14: Q3 2023 Cash
Q3 2023 Cash Key Drivers: Cash Balance as of September 30, 2023: • Q3 cash burn of $0.9M $10.8M • Net loss of $0.9M: lower by $1.1M versus ($5.2M) Q2 driven by operating expense control $0.3M and improved gross margin ($0.9M) <($2.2M) ($0.3M) • Working Capital ($0.3M): continued $12.2M inventory red
Slide 15: Revising 2023 Guidance
Revising 2023 Guidance Revenue Gross Margin Cash & Growth Profile Cash Flow Revenue guidance Gross margins Greater than $10.5M $28.0-$28.5 million between 58-60%, and ending cash balance 60-62% exit rate Key Drivers/Milestones Key Drivers/Milestones Key Drivers/Milestones • Q4 Core SCIg drug market
Slide 16: Catalysts to Capture Growth
Catalysts to Capture Growth Key Upcoming Milestones New Launch Freedom60 for use with New New Novel Therapies signed Product Launches the 50mL PFS Collaborations collaborations/commercialization's 510k New Submissions New product & drug indications Expansion into new markets Geographies 16
Slide 17: Upcoming Investor Day
Upcoming Investor Day K@RU SAVE THE DATE: (@ KORU Investor Day December 5, 2023 Location KORU Medical Headquarters 1 100 Corporate Drive Mahwah, NJ Featured Presentations 10: im. ET