Slide 1: 1H21 Financial Results
1H21 Financial Results 25 February 2021 PRESENTED BY Brad O’Connor Chief Executive Officer © 2021 Cogstate Ltd. All rights reserved.
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Cogstate Limited (‘Cogstate’). The information in this presentation is of a general nature and does not purport to be complete, nor does it contain all the information which would be required in a prospectus prepared in accordance with the requiremen
Slide 3: Cogstate Investment Case
Cogstate Investment Case Record revenue pipeline with Significant leverage to an earnings leverage Alzheimer’s treatment • Momentum in Clinical Trials continues to • There are now a number of potential build (record $47.9m revenue backlog). treatments in phase II and III clinical trials and • Eisai
Slide 4: Revenue Streams
Revenue Streams Clinical Trials Healthcare Technology and services provided to pharma/biotech Cognitive health assessments for individuals and their to support cognition assessment in global clinical trials physicians provided in-clinic or remotely Growing strongly on a project revenue model that So
Slide 5: Today Vision
Today Vision Cognitive assessment is mostly Scalable digital solutions that manual, burdensome, difficult to can be performed routinely access and rarely performed anywhere 5
Slide 6: Significant commercial agreement in Healthcare; Clinical Trials business continues to strengthen
1 2 3 Significant commercial Clinical Trials business Positioned for profit agreement in Healthcare continues to strengthen growth Landmark license + upside Strong result despite Future profit growth driven from potential therapy some Covid related by: launch revenue deferral Clinical Trials: Exclus
Slide 7: Expanded Eisai partnership takes Cogstate a step closer to realising its vision
Expanded Eisai partnership takes Cogstate a step closer to realising its vision Global leaders in development and commercialization of total dementia care ecosystem, from identification to intervention Current Opportunity Potential Future Opportunity Enablers using Cogstate Increasing awareness of T
Slide 8: A disease modifying therapy will require early detection of cognitive decline
A disease modifying therapy will require early detection of cognitive decline in order to intervene and slow progression – creating a significant global market for scalable and sensitive dementia screening. 320 million people over age 65, key markets only USA: 53.2 million people EU: 71.5 million pe
Slide 9: We have never been closer to the launch of potential Alzheimer's therapies
Submitted application to FDA 1. Aducanumab: Biogen / Eisai • FDA review date: 7 June 2021 • Monoclonal antibody targeting aggregated We have never amyloid-β • Also submitted applications to regulators in: been closer to the - Europe (announced Oct 2020) and launch of potential - Japan (announced Dec
Slide 10: Eisai Deal Terms
Eisai Deal Terms License Commercials Japan: $1m upfront (received 1H20) and 50/50 profit split 2 x 10-year licenses (Japan & Rest-of-World) Rest-of-World: Eisai has launched in Japan & committed to launch within: • US$15m upfront – received in 2Q21 USA: 1 year, EU: 3 years, China: 4 years • Royalty
Slide 11: Treatment of Royalty Income Streams
Treatment of Royalty Income Streams Revenue Recognition (Global ex Japan) • US$15m upfront payment + US$10m minimum Royalty recognised on a straight-line basis over 6 years (5 year term + 12 months to commence) • US$20m minimum Royalty over years 6-10 has not been included in revenue or backlog at t
Slide 12: Clinical Trials Growth – Key Sources
Clinical Trials Growth – Key Sources 1. Core business is strengthening • Strong 1H21 sales result • Record contracted future revenue ($49.7m as at 31 Dec 20) 2. Market shift to remote assessment provides enhanced opportunities for digital assessment • Successfully established innovation partnerships
Slide 13: Financial Overview
Financial Overview 13
Slide 14: Profit & Loss
Profit & Loss Strong revenue growth driven by 1H21 1H20* Movement significant increase in Clinical Trial contracts US$ US$ US$ % and initial contribution from Eisai Global Total Revenue 13.86 8.72 5.14 59% partnership Direct Costs -7.15 -6.46 -0.69 -11% Revenue and earnings in PCP restated Contribut
Slide 15: Clinical Trials Revenue & Contribution
Clinical Trials Revenue & Contribution • 1H21 results consistent with 2H20 • COVID-related delays to clinical trials resulted in deferral of revenue (expected catch-up in future periods) • Contribution margin increased to 49% with control of direct costs resulting in leverage to higher sales. Direct
Slide 16: FY21 Clinical Trials Sales Contracts
FY21 Clinical Trials Sales Contracts • Excellent 1H21 result in the context of the risk environment. • Q1 result impacted by slower R&D investment decision making due to ongoing uncertainty caused by COVID. Q2 result showed a strong recovery. • The value of new contracts signed has now exceeded reve
Slide 17: Healthcare Revenue & Contribution
Healthcare Revenue & Contribution • FY20 Japan license revenue restated (resulted in a US$0.96m reduction 1H20 revenue and pre-tax earnings)* • 2H21 revenue will see a full 6 months Global (ex Japan) license fee contribution (vs. 2 months in 1H21) • Minimum Royalty revenues from Eisai will be realis
Slide 18: Revenue Backlog
Contracted Future Revenue 1H21 1H20 VARIANCE FAV/(UNFAV) up 96% to $74.8 million US$ US$ US$ % Contracted Clinical Trials Revenue 49,668,291 37,170,604 12,497,687 34 Eisai License – Global (commercial years 1-5)* 24,224,099 - 24,224,099 100 Eisai License – Japan (10 year license) 865,042 965,234 (10
Slide 19: Business & Financial Outlook
Clinical Trials • $10.1m contracted 2H21 revenue as at 01-Jan-21 • Will leverage remote assessment capabilities, strategic customer relationships and ERT channel partnership, to provide additional sales opportunities • Expectation that 2H21 revenue will accelerate, but subject to site- based activit
Slide 20: Cogstate Investment Case
Cogstate Investment Case Record revenue pipeline with Significant leverage to an earnings leverage Alzheimer’s treatment • Momentum in Clinical Trials continues to • There are now a number of potential build (record $47.9m revenue backlog). treatments in phase II and III clinical trials and • Eisai
Slide 21: Appendices
Appendices 21
Slide 22: Summary Balance Sheet
Summary Balance Sheet 31-Dec-20 30-Jun-20 • Cash was boosted by the upfront Cash 21.33 10.33 Royalty payment received by Trade Receivables 5.49 4.28 Eisai in Dec 20. Property plant and equipment 1.20 1.27 Intangibles 8.26 6.95 • Intangibles were higher reflecting Other Assets 10.74 9.09 capitalisati
Slide 23: Summary Cash Flow
Summary Cash Flow 1H21 1H20 Cash flows from operating activities Receipts from operating activities 29.52 12.47 Payments to suppliers and employees -16.32 -13.62 Finance costs -0.02 -0.04 Government grants and tax incentives 0.04 Net cash flows used in operating activities 13.22 -1.19 Cash flows use
Slide 24: License Agreements
Who is Eisai? • Listed on Tokyo Exchange • Market Cap approx. US$22bn • Revenue (year ended 31 March 2020) US$6.6bn • Focusing on dementia as global pioneer since Aricept launch in 1997 License • Partnered with Biogen to jointly develop and Agreements commercialise Alzheimer’s disease treatments, in
Slide 25: Eisai / Cogstate Current Activities
Japan • www.NouKNOW.jp • NouKNOW TM (Know your brain) and consumer app (Digital brain performance app, EasiitTM) that incorporate NouKNOW TM tests (Cogstate technology) launched. • Planning for medical device registration for Cogstate’s Cognigram assessment tool ahead of potential Eisai / Cogstate t
Slide 26: Eisai Partnership in Japan
nouknow.jp NouKNOW™ means “know your brain” • Cogstate tests embedded within the website • In conjunction with Eisai, launch of awareness campaign in Japan Eisai Partnership • Feedback includes meaningful intervention such as diet, exercise, and physician consultation in Japan • Currently targeting:
Slide 27: Easiit Digital Brain Performance Application
Easiit Digital Brain Performance Application • Eisai has launched Easiit application, a key element of the digital platform demonstrating their commitment to both Cogstate and to establishing a broader dementia care ecosystem • Cogstate tests (mobile phone versions) embedded within the app (developm
Slide 28: Easiit Digital Brain Performance Application
www.easiit.com Easiit Digital Brain • Leveraging experience gained from development and Performance marketing of Aricept® (symptomatic treatment for Alzheimer’s disease) Application • The planned ecosystem will deliver benefits to patients by collaborating with partners such as: - Medical organisati
Slide 29: Restatement of Prior Period
Restatement of Prior Period Due to the significance of the global licensing agreement, the group has reviewed the application of the its accounting policy in respect of revenue relating to the grant of licenses, provision of supporting services and the provision of server access, in accordance with
Slide 30: Cogstate
© Cogstate