Photocure ASA · OSL:PHO
Photocure ASA — Q2 2020 Earnings Presentation
33 slides from Photocure ASA's earnings presentation, Aug 18, 2020
Slide 1: Photocure ASA Results for 2nd Quarter 2020
PHOTOCURE ASA RESULTS FOR 2ND QUARTER 2020 18 August 2020 Daniel Schneider, President and CEO Erik Dahl, CFO
Slide 2: Disclaimer
DISCLAIMER By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Photocure (the “Company”) fo
Slide 3: 2nd Quarter 2020 Highlights
2ND QUARTER 2020 HIGHLIGHTS CONTRIBUTING TO PHOTOCURE STRATEGY IMPLEMENTATION Company highlights: Financial growth highlights: • Regaining worldwide rights to Hexvix®: final agreement signed • Positive revenue growth rate in Q2, in spite of Covid-19 pandemic. Hexvix/Cysview revenue growth of 3% – Co
Slide 4: Photocure at a Glance
PHOTOCURE AT A GLANCE Accelerating Oslo (Global HQ) revenue growth: +23% total sales NOK 2.0 billion Europe HQ revenue growth in Market cap** Princeton, NJ (U.S. HQ) 2019 NOK 330M global Norwegian commercial-stage pharmaceutical in-market sales* 559% share company focused on bladder cancer. turnover
Slide 5: Our Mission Is to Deliver Transformative Solutions
OUR MISSION IS TO DELIVER TRANSFORMATIVE SOLUTIONS WHICH IMPROVE THE LIVES OF BLADDER CANCER PATIENTS Photocure’s four step strategy will deliver our mission 1 2 3 4 Accelerate Expand Acquire Transform • Drive the breadth •A Generate sales in • Partner and in- • Build a global and depth of new geogr
Slide 6: Large Unmet Needs in Non-Muscle Invasive Bladder Cancer
LARGE UNMET NEEDS IN NON-MUSCLE INVASIVE BLADDER 9th 550,000 200,000 most common new cases1 deaths annually cancer worldwide1 of which 75% are men1 CANCER (NMIBC) COMMON #1 USD 5.7 Billion Highest per patient Cost of Bladder Cancer in the U.S., lifetime treatment costs projection for 20203 EXPENSIVE
Slide 7: The Patient Journey – Characterized by Long Term Follow-up
THE PATIENT JOURNEY – CHARACTERIZED BY LONG TERM FOLLOW-UP WITH REPEAT PROCEDURES Outpatient & Clinic Diagnostic Cystoscopy Targeting flexible scope ~700k procedures Operating room EU/USA TURBT Targeting Rigid scope Symptoms ~1.6 mill procedures EU/USA Outpatient & Clinic Surveillance Cystoscopy fle
Slide 8: Hexvix/Cysview for Better Detection and Management of NMIBC
HEXVIX®/CYSVIEW® FOR BETTER DETECTION AND MANAGEMENT OF NMIBC A Drug Device combination for better visual contrast between benign and malignant cells is taken up selectively Hexvix / Cysview is used by cancer cells in with a blue light enabled the bladder cystoscope, from Karl making them Storz, Wol
Slide 9: You Cannot Treat What You Cannot See
BLUE LIGHT CYSTOSCOPY: CREATING A NEW STANDARD OF CARE “YOU CANNOT TREAT WHAT YOU CANNOT SEE!” Risk that 20-35% of cancer patients will be missed, if Blue Light Cystoscopy is NOT used1,2 Risk of wrong risk-classification leading to mismanagement of disease, if Blue Light Cystoscopy is NOT used White
Slide 10: Complete 1st TURBT – Critical for Patient Outcomes
BLUE LIGHT CYSTOSCOPY CAN PROVIDE AN ACCURATE AND COMPLETE 1ST TURBT – CRITICAL FOR PATIENT OUTCOMES Bladder Cancer Progression and Recurrence NMIBC MIBC 98 Key therapeutic aim is to avoid progression from 88 non-muscle invasive bladder cancer (“NMIBC”) to muscle invasive bladder cancer (“MIBC”) 63
Slide 11: Q2 2020 Financials
Q2 2020 Financials - ae
Slide 12: Segment Performance Second Quarter 2020
SEGMENT PERFORMANCE SECOND QUARTER 2020 Amounts in NOK million Q2 ’20 Q2 ‘19 Change YTD ’20 YTD ‘19 Change Commercial Franchise Commercial Franchise • U.S.: Q2 revenue decline driven by Covid-19. YTD US revenue 21.5 24.5 -12% 49.8 45.6 9% unit sales 2% below last year Nordic revenue 13.9 10.7 30% 26
Slide 13: Consolidated Income Statement Second Quarter 2020
CONSOLIDATED INCOME STATEMENT SECOND QUARTER 2020 Amounts in NOK million Q2 ‘20 Q2 ‘19 Change YTD ‘20 YTD ‘19 Change • Operating expenses, increase driven by Hexvix/Cysview revenue 53.5 52.1 3% 107.9 103.3 4% – Significant FX impact, average approximately Other revenue 0.2 0.9 0.8 1.9 10% Total reve
Slide 14: Cash Flow Second Quarter 2020
CASH FLOW SECOND QUARTER 2020 • Cash flow from operations in Q2 improved Amounts in NOK million Q2 ’20 Q2 ‘19 YTD ’20 YTD ‘19 mainly due to working capital (accounts Operations cash flow 11.4 -4.0 14.4 -19.7 receivables, accruals) while YTD Earnings before tax -13.8 -6.7 -18.7 -12.6 improvement was
Slide 15: Balance Sheet 30 June 2020
BALANCE SHEET 30 JUNE 2020 30.06 31.12 Amounts in NOK million 2020 2019 • Non-current assets Non-current assets 55.9 70.5 – Net investments of NOK 8.7 million, driven by investments in Cysview phase 3 project. This project will be fully amortized in Investments 8.7 13.6 2020 Tax asset 30.6 38.3 – De
Slide 16: Solid Financial Position to Meet Our Ambitions
SOLID FINANCIAL POSITION TO MEET OUR AMBITIONS – NOK 500 MILLION IN CASH AT HAND • Photocure had NOK 499.4 million in MNOK cash at the end of Q2 600 – Positive net cash flow from operations – Private placements on 27 April and 24 June, raising a total net of NOK 303 million 500 – Bank financing of N
Slide 17: Expand and Acquire Worldwide Rights to Hexvix
Expand and Acquire Worldwide Rights to Hexvix
Slide 18: Photocure Unlocks Tremendous Potential in Europe
PHOTOCURE UNLOCKS TREMENDOUS POTENTIAL IN EUROPE Strategic opportunity Value-creation opportunity • Apply commercial success & strong growth in the • After transition year targeting 20-30% annual revenue Nordic and the U.S. markets to the European region growth in current Ipsen territories • Deep kn
Slide 19: Large Untapped Potential in the EUR 150 Mill European Market
LARGE UNTAPPED POTENTIAL IN THE EUR 150 MILL EUROPEAN MARKET (CURRENT EU PENETRATION (EXCEPT DACH) <5% WITH OPPORTUNITY TO REACH NORDIC LEVEL OF 40%) Europe U.S. Europe: 165,000 new US: 82,500 new cases NORDICS cases and more than and more than 18,000 40% penetration 50,000 deaths deaths annually1 a
Slide 20: Positioned for Growth
Positioned for growth
Slide 21: U.S.: Accelerated Momentum
U.S.: ACCELERATED MOMENTUM H1 2020 REVENUES EXCEED H1 2019 DESPITE COVID-19 IMPACT 53019 52471 45635 34893 28785 20983 21459 15814 14650 H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 H1 19 H2 19 H1 20 U.S. (1000 NOK)* 21 *Sales in NOK ‘000 and excluding one-off accrual for terminated Medicaid rebate program.
Slide 22: U.S. Accelerated Momentum: Installations Fuel Future Growth
U.S. ACCELERATED MOMENTUM: INSTALLATIONS FUEL FUTURE GROWTH Annual New Installations Cumulative install base continues strong trend 70 65 70 60 60 54 19 50 50 8 40 40 30 30 23* 21 23 20 18 46 47 4 15 14 20 11 10 10 20 19 12 15 15 17 10 10 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 2012
Slide 23: Hexvix/Cysview – Key Market Enablers in Place
HEXVIX®/CYSVIEW® – KEY MARKET ENABLERS IN PLACE: READY FOR GROWTH AND OUR AMBITION TO BECOME THE STANDARD OF CARE Penetration POSITION IN THE LIFE CYCLE KEY SUCCESS FACTORS 100% Approval Surgical & surveillance 75% Acceptance Major & local guidelines* Denmark Permanent and 50% Access favorable reimb
Slide 24: Growing Interest from the Scientific Community for Blue Light Cystoscopy
GROWING INTEREST FROM THE SCIENTIFIC COMMUNITY FOR BLUE LIGHT CYSTOSCOPY WITH HEXVIX®/CYSVIEW® Role of blue light AUA virtual Ongoing investigation into cystoscopy in educational session: further areas of utility of detecting invasive “Surgical Techniques: Hexvix/Cysview: bladder tumor: Tips & Trick
Slide 25: IP Protection Strategy
IP Protection Strategy att
Slide 26: Drug-Device Combination – Hurdles to Market Entry
DRUG-DEVICE COMBINATION ‒ HURDLES TO MARKET ENTRY NO PDT PRODUCTS HAVE EXPERIENCED GENERIC COMPETITION (VISUDYNE, METVIX) TO DATE 1 IP*/Intellectual Property 3 Technical/Manufacturing 4 Regulatory hurdles Review multiple patents, regulatory data hurdles A drug-device combination product. ANDA1 for p
Slide 27: Cevira License Agreement
Cevira® License Agreement
Slide 28: Cevira: License Agreement with Asieris
CEVIRA®: License Agreement terms: LICENSE AGREEMENT WITH ASIERIS USD 250 mill potential in total: ASIERIS MEDITECH • Asieris is a subsidiary of the China-based Jiangsu New in July 2020: Asieris received China NMPA’s CO., Ltd. Yahong Meditech Co., Ltd., a specialty pharma Approval to start a Global P
Slide 29: Summary and Outlook
Summary and outlook = ——
Slide 30: Optimistic to Rebound from Covid-19 Impact in H2
OPTIMISTIC TO REBOUND FROM COVID-19 IMPACT IN H2 BLCTM with Hexvix®/Cysview® can play an integral part in this situation: postponed procedures* do not postpone aggressive cancer progression • Patient safety through better detection of bladder cancer tumors, in spite of the potential longer check-up
Slide 31: Guidance: Approximately 1BN Revenue in 2023
GUIDANCE: APPROXIMATELY 1BN REVENUE IN 2023 • Current-year guidance: – Strong back-half of Q2 momentum continues – Temporary pressure on revenue due to COVID-19 impact • Postponed procedures / restricted access to OR • Unknown impact on installed base growth in near term: capital equipment budgets a
Slide 32: Creating the Leading Bladder Cancer Company
CREATING THE LEADING BLADDER CANCER COMPANY 1 2 3 4 Accelerate Expand Acquire Transform • Drive the breadth •A Generate sales in • Partner and in- • Build a global and depth of new geographies license synergistic Bladder Cancer Hexvix/Cysview assets to Company usage in key •B Enhance the value stren
Slide 33: Q&A
Q&A