Cogstate Ltd · ASX:CGS
Cogstate — Non-Deal Roadshow (November 2008)
16 slides from Cogstate's roadshow presentation, Nov 10, 2008
Slide 1: Investor Roadshow November 2008
For personal use only Investor Roadshow November 2008 www.cogstate.com
Slide 2: Overview
Overview CogState (ASX: CGS) is a health services and equipment company that provides cognition testing technology to pharmaceutical For personal use only companies undertaking clinical trials Share price $0.16 Market cap (as at 7/11/08) $10.5m Cash (as at 31/10/08) $2.95m (excluding debtors $0.98m)
Slide 3: CogState's core business model - explained
CogState’s core business model - explained • Provides cognition testing to the global pharmaceutical industry within the For personal use only clinical trial process (recently estimated by Bioshares to be $190m p.a.) • Cognition testing used in many clinical trials for drugs designed to work on cent
Slide 4: Market Size – available figures
CogState’s core business model - explained Market Size – available figures For personal use only • 820 drug trials currently registered with the National Institutes of Health in the USA for CNS diseases and disorders: Disease Phase I Phase II Phase Phase IV III Alzheimer’s Disease 29 36 21 22 Schizo
Slide 5: Why CogState is growing so rapidly
Why CogState is growing so rapidly • Pharma model now focuses heavily on the sales and marketing of their products – outsourcing clinical development For personal use only • 3rd parties (CROs or other service providers such as CogState) are engaged to implement and execute clinical trials • Increasi
Slide 6: Higher revenue with later stage contracts
Higher revenue with later stage contracts • CogState is winning an increasing number of higher value, For personal use only later stage contracts – 13 phase II contracts signed during FY08 (FY07 = nil) – 37 contracts signed FY08 (FY07 = 17) Winning an increasing number of later stage contracts Pre-C
Slide 7: Market dynamics & the CogState advantage
Market dynamics & the CogState advantage • CogState provides rapid computerised testing batteries - < 15 mins For personal use only • Datapoint® – real time information etc to clients • Top Down business model – prove capability for new customers via Phase 1 trials – allows for other Phase 1, and ne
Slide 8: United BioSource Corp. (UBC) Partnership
United BioSource Corp. (UBC) Partnership • UBC agreement signed July 2008 For personal use only – Initial 15% holding in CogState from private placement and underwriting of Rights Issue – Allows CogState to build a comprehensive service offering, especially for larger Phase II and III studies – Work
Slide 9: Focus on growth
Focus on growth • Growing market for computerised cognitive technology in For personal use only clinical trial – move away from traditional ‘paper and pencil’ method • Growth in revenue: – 114% growth in the number of pharma company customers – 61% revenue growth for FY08 – A$0.5m positive cash flow
Slide 10: Clinical trials: building a profitable business
Clinical trials: building a profitable business Trailing Twelve Months Sales Revenue For personal use only 6,000 5,000 4,000 Sales Revenue $'000 3,000 2,000 1,000 - Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 12 months ended www.cog
Slide 11: CogState ClinicalTrials: building a profitable business
CogState ClinicalTrials: building a profitable business Trailing Twelve Months Operating Cash Flow For personal use only 1,500,000 1,000,000 500,000 Debtors movement - Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Cash flow from operations Cash flow from operations + debtors
Slide 12: Geographic segments of revenue
Geographic segments of revenue • At 30 June 2008, CogState products were operating in over 150 clinical trial sites, in over 30 languages, around the world For personal use only Geographic spread of Geographic spread of revenue FY07 revenue FY08 0% Asia 1% 10% Asia Pacific Pacific 29% 28% USA and US
Slide 13: Q1 FY09
Q1 FY09 • Q1 FY09 result – first operating profit For personal use only – A$1.99m revenue for Q1 • A$0.5 million from contracts on hand at 1 July 2008 • A$1.5 million from contracts signed during Q1 – A$5m revenue for the trailing twelve months – A$0.5m cash inflow from operations for the trailing t
Slide 14: Q1 FY09
Q1 FY09 Summary of clinical trial contracts: For personal use only – A$3.5m contracts signed since 1 July 2008 (A$1 = US$0.70) • Includes A$1.4m phase III schizophrenia trial • 4 x Phase II studies with average value of A$0.27m Phase of FY07 FY08 FY09 Trial Q1 Phase I 11 19 7 Phase II 0 13 4 Phase I
Slide 15: Positive outlook
Positive outlook • Profit guidance For personal use only – FY09 Q2 • Sales revenue of at least $1.5 million • At this level, expect operating break even for Q2 – FY09 H1 • Expect to record first operating profit for the first half • At this time, we are not issuing profit guidance for the second hal
Slide 16: For personal use only
For personal use only Brad O’Connor Chief Executive Officer CogState Ph: 03 9664 1300 boconnor@cogstate.com www.cogstate.com