Valeritas — Investor Presentation (December 2019)
21 slides from Valeritas's investor presentation, Dec 11, 2019
Slide 1: Valeritas Corporate Presentation
Valeritas Corporate Presentation NASDAQ: VLRX December 2019 Improving health and simplifying life for people with diabetes 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation shall not be deemed an offer to sell securities nor a solicitation of an offer to purchase securities. Any sale by the company shall be made pursuant to a definitive purchase agreement. Unless otherwise stated in this presentation, references to “Valerita
Slide 3: Large Market Opportunity & Poised for Significant Value Creation
Valeritas: Large Market Opportunity & Poised for Significant Value Creation Unrivaled Market Highly Attractive Opportunity Financial Profile Solid Top-Line Growth Global Type 2 diabetes Gross Margins ~50% New commercial model pandemic tracking to 80% validated 5.6 million U.S. Type 2 Profi
Slide 4: Key Problem Managing Type 2 Diabetes
Key Problem Managing Type 2 Diabetes “Drugs don’t work in people who don’t take them” – C. Everett Koop, M.D.1 Type 2 Insulin Users Intentionally Skip and/or Current Insulin Delivery Standard of Care Forget to Take Injections2 Most Type 2 patients will not inject away from home3 1. Eur J Heart Fail.
Slide 5: Valeritas' Massive U.S. Market Opportunity
Valeritas’ Massive U.S. Market Opportunity Our Core Focus 5.6M 4.5M ~23M Not Achieving Type 2 Insulin DiagnosedType 2 with Type 2 A1c Goal3,4 Users2 TypeNot 2on Diabetes Insulin 1 Insulin Users (~ (~5.6M) $11.3B5 Source: Company data, kff.org Annual U.S. 1. CDC National Diabetes Statistics Report, 2
Slide 6: 4.5M U.S. Type 2 Patients on Insulin Not Achieving A1c Goal
4.5M U.S. Type 2 Patients on Insulin are Not Achieving A1c Goal Despite Serious Health Consequences % of Type 2 Patients on Insulin NOT at Goal1 Impact of Improving A1c Control2 Every 1% improvement in A1c decreases diabetes related events in: AT A1c Goal NOT AT A1c Goal 20% 80% Deaths Heart Attacks
Slide 7: Our Solution, V-Go: Discreet, Effective & Simple to Use
Our Solution, V-Go®: Discreet, Effective & Simple to Use Designed for the Patient with Type 2 Diabetes Discreet Simple to Use Convenient Benefits Better A1c Control* Of V-Go Cost Neutral Self-contained Sharps Container Pharmacy vs. DME ©2019 Valeritas, Inc. 7 * Company data, kff.org (16 published cl
Slide 8: V-Go Competition: Pens not Pumps
V-Go® Competition: Pens not Pumps Unique needs of Patients with Type 2 Diabetes Creates Valeritas’ Opportunity & Differentiates it from Others TYPE 1 TYPE 2 Typical Patient Engaged / Advocate Embarrassment / Stigma Attitude Complex Device More Likely Less Likely Acceptable? (~30% of Type 1 are on pu
Slide 9: New Higher-Service Sales and Marketing Model
New Higher-Service Sales and Marketing Model Model validated, driving targeted account penetration and robust top-line growth DIRECT SALES REPs ON-LINE ADs INDIRECT REPs EDUCATION PROMOTION Clinical Education DEMO KIT Team DESIRE PRESCRIBE Direct to Patient KOLs Marketing PATIENT PHYSICIAN V-Go Care
Slide 10: V-Go Cares Supporting Patients at a New Level
V-Go® Cares Supporting Patients at a New Level TM V-Go Cares Patient Support In-Person V-Go Training Demo Kits Customer Coaching Benefit Coaching with Clinical CRM & CRM Service (Initiation) Verification (Support) Education (VCC) Team Coaching • Supporting patients at an entirely new level • Matchin
Slide 11: Direct Sales Footprint – Significant Organic Growth Opportunity
Direct Sales Footprint – Significant Organic Growth Opportunity With sales model validated top-line growth can be accelerated by disciplined sales force expansion . Currently ~75 direct reps . ~50 in 2018, . added 25 reps in Q1‘19 . Large markets under- represented or uncovered . Potential to rapidl
Slide 12: Strong Clinical Evidence
Strong Clinical Evidence Demonstrated Statistically Significant Improvements in A1c1-11 Published 16 Clinical Papers Improved Diabetes Management Performance Measures4,7,9,10,11 V-Go® >1,500 Patients Studied Lowered Total Daily Dose of Insulin Presentations 1-11 (Prescribed / Administered) at Nation
Slide 13: Robust Clinical Data
Robust Clinical Data Demonstrated Ability of V-Go® to Deliver Clinically Relevant Reductions in A1c with Less Insulin V-GoAL1 SIMPLE2 VALIDATE 13 EVIDENT4 IMPROVE5 JONES6 KAISER7 UMASS8 MOTIV9 ENABLE10 Baseline 9.9% 8.8% 9.6% 9.6% 9.8% 9.1% 9.8% 10.7% 8.7% 9.2% N=169 N=87 N=204 N=85 N= 103 N=69 N=60
Slide 14: V-Go: Improved A1c Control with Less Insulin
V-Go®: Improved A1c Control with Less Insulin A prospective study of 415 patients shows advantage of V-Go vs. Standard Treatment Optimization (STO)1, 2 Greater Improvement in A1c1 Less Insulin Used & More Cost Effective1,2 V-Go STO 29% V-Go $24.48 vs STO $39.95 n=169 n=246 Less Insulin per patient
Slide 15: Strong Gross Margin Mitigates Capital Needs to Break-Even
Strong Gross Margin Mitigates Capital Needs to Break-Even Quarterly Revenue Level at Which 45% Historical and Projected Gross Margin Gross Margin was Achieved* vs. ($ in million) Revenue $61.1 ~25% 80% Margin Improvement $26.4M $20M $20M 47% $27.0 40% $18M 36% $21.4 21% $5.8 Valeritas Dexcom Tandem
Slide 16: Robust Pipeline to Drive Long-Term Growth
Robust Pipeline to Drive Long-Term Growth V-Go® is a platform with the potential to disrupt the diabetes & insulin markets V-Go® Prefill1,3 h-PatchTM4 (Simple Insulin Management)1,2 Being developed to: (core technology behind V-Go) Being developed to: • Eliminate filling step as it would include a P
Slide 17: h-Patch: Simple, Subcutaneous Drug Delivery
h-Patch™: Simple, Subcutaneous Drug Delivery Pharmacokinetic Studies Cannabidiol (CBD) Apomorphine (Apo) GLP-1 Analogue A 48-hour study performed in dogs, A 48-hour study performed in dogs, A 72-hour study performed in dogs, delivering CBD over the first 24 hours delivering Apo over the first 24 hou
Slide 18: Growth and Milestones to Drive Significant Shareholder Value
Growth and Milestones to Drive Significant Shareholder Value Grow Our Share Expand Our Reach Leverage Pipeline Launch Expand V-Go Prefill Advance Sales Force Product Launch V-Go Next in U.S. Collaborate V-Go SIMTM Gen / Line Launch with (Int’l) Extensions Payors V-Go SIMTM Expand h-Patch Expansion o
Slide 19: Financial Summary 3Q 2019 y/y Comparison
Financial Summary 3Q 2019 y/y Comparison Financial Summary Quarterly Summary YTD Summary ($ in millions) 3Q19 3Q18 Change 2019 2018 Change Revenue $8.4 $6.9 +22.2% $22.4 $19.5 +14.7% Gross Profit $4.2 $3.2 +32.2% $11.0 $9.2 +19.6% Gross Margin 49.6% 45.9% +370 bp 49.0% 47.0% +200 bp Net Loss $13.2 $
Slide 20: Large Market Opportunity & Poised for Significant Value Creation
Valeritas: Large Market Opportunity & Poised for Significant Value Creation Unrivaled Market Highly Attractive Opportunity Financial Profile Solid Top-Line Growth Global Type 2 diabetes Gross Margins ~50% New commercial model pandemic tracking to 80% validated 5.6 million U.S. Type 2 Profi
Slide 21: Valeritas: Improving health and simplifying life for people with diabetes
Valeritas Corporate Presentation NASDAQ: VLRX December 2019 Improving health and simplifying life for people with diabetes 21
Valeritas Holdings — Investor Presentation (December 2019) on 6ix