Photocure ASA · OSL:PHO
Photocure ASA — Q1 2019 Earnings Presentation
28 slides from Photocure ASA's earnings presentation, May 14, 2019
Slide 1: Photocure ASA Results for First Quarter 2019
PHOTOCURE ASA RESULTS FOR FIRST QUARTER 2019 14 May 2019 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: Delivering on Key 2019 Objectives
DELIVERING ON KEY 2019 OBJECTIVES Accelerate Cysview® Create opportunities Significant growth of Increase Hexvix® / in US flexible vis-à-vis our Cysview® in US Cysview® global in- cystoscopy strategic TURBT market market unit sales surveillance market partnerships • Q1 revenue growth in US$ 52%, in-
Slide 4: Accelerated Momentum: Consecutive Quarters of Record Revenues in US
ACCELERATED MOMENTUM 5 CONSECUTIVE QUARTERS OF RECORD REVENUES IN US US (1000 NOK) 25000 +15% vs Q418 20000 +12% vs Q318 +3% vs Q218 +26% vs Q118 15000 +25% vs Q417 10000 5000 0 4 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
Slide 5: Accelerated Momentum: Installed Base of Cystoscopes in the US
ACCELERATED MOMENTUM INSTALLED BASE OF CYSTOSCOPES IN THE US 180 171 157 160 140 120 104 100 83 80 65 60 49 40 36 25 20 0 Actual 2012 2013 2014 2015 2016 2017 2018 Q1 2019
Slide 6: Strategic Focus: Transforming Bladder Cancer Detection and Management
STRATEGIC FOCUS TRANSFORMING BLADDER CANCER DETECTION AND MANAGEMENT Profitable Hexvix®/Cysview® ~$35M global in-market sales* (FY’18) commercial franchise Over 500k patients treated with Hexvix®/Cysview® worldwide Strong Unique and complex drug-device procedure competitive position Leading regulato
Slide 7: Hexvix/Cysview Update
Hexvix®/Cysview® Update — a
Slide 8: Non-Muscle Invasive Bladder Cancer: Significant Recurrence Rate and High Disease Burden
NON-MUSCLE INVASIVE BLADDER CANCER SIGNIFICANT RECURRENCE RATE AND HIGH DISEASE BURDEN ~650K ~2.2M surgical procedures surveillance cystoscopies annually in USA and EU annually in USA and EU Tumor as seen through 50% 10% – 30% a cystoscope disease recurrence disease progression $3.7 Billion in direc
Slide 9: Hexvix/Cysview: A Dramatic Impact on Bladder Cancer Patient Care
HEXVIX® / CYSVIEW® A DRAMATIC IMPACT ON BLADDER CANCER PATIENT CARE WLC BLC with Hexvix® / Cysview® Key benefits Key feature Improve diagnostic Better visual contrast accuracy between benign and malignant cells Achieve optimal surgical results Significant reduction of disease recurrence Reduction in
Slide 10: Tremendous Opportunity in the US: Cysview Ready for Accelerated Growth
TREMENDOUS OPPORTUNITY IN THE US CYSVIEW® READY FOR ACCELERATED GROWTH! Focused Execution • Optimizing Commercial Resources • Increasing BLC awareness • Expanding installed BL Cystoscopes • Increasing BLC procedures in each clinic 10
Slide 11: Our Ambition: Make Hexvix/Cysview the Standard of Care
OUR AMBITION: MAKE HEXVIX®/CYSVIEW® THE STANDARD OF CARE Keys to Success – The Five A’s Approval • Indication in surveillance as well as the surgical cystoscopy market Acceptance • AUA, EAU, SUO and many regional and local guidelines Access • Permanent and favorable reimbursement “Activated” Awarene
Slide 12: Approval: Expanded Indications: Surveillance, Repeat Use, and CIS
APPROVAL EXPANDED INDICATIONS: SURVEILLANCE, REPEAT USE, AND CIS The global flexible surveillance market is approximately 3X bigger than the rigid TURBT market ~650K surgical procedures TURBT annually in USA (350k) and EU (300k) Operating room Hexvix®/Cysview® Rigid opportunity: TURBT and flexible ~
Slide 13: Acceptance: Included Prominently in Major World Guidelines
ACCEPTANCE INCLUDED PROMINENTLY IN MAJOR WORLD GUIDELINES Strongly recommended by European and national guidelines as well as expert panels Supportive environment Strongly recommended by US guidelines and expert panels 13
Slide 14: Acceptance Growing: Significant Publications 2019 Including Flex
ACCEPTANCE GROWING SIGNIFICANT PUBLICATIONS 2019 INCLUDING FLEX! Nature Reviews Urology: • Expert Consensus Statement: Blue light flexible cystoscopy with Cysview (hexaminolevulinate) in non- muscle-invasive bladder cancer World Journal of Urology: • The prognostic impact of hexaminolevulinate-based
Slide 15: Acceptance: Key Reference Centers Across the US
ACCEPTANCE KEY REFERENCE CENTERS ACROSS THE US Established in >140 key cancer hospitals and leading institutions The numbers will grow with optimized US commercial footprint in 74% in 56% of in 74% of top NCCN centers NCI centers 25 Best Hospitals High Adoption Rates 15
Slide 16: Access: Favorable and Permanent US Reimbursement 2019
ACCESS FAVORABLE AND PERMANENT US REIMBURSEMENT 2019 • Commercial Payers – Cysview is separately reimbursed normally at ASP + 6% to 15% depending on the contracted rates for all sites of care • Coding: A9589 – Cysview (hexaminolevulinate acetate) • Medicare – Office / Clinic: Cysview is separately r
Slide 17: Activated Awareness: 99% of Bladder Cancer Patients Seek BLC with Cysview
“ACTIVATED” AWARENESS 99% OF BLADDER CANCER PATIENTS SEEK BLC™ WITH CYSVIEW® ! 1. Survey of self-selected patients completed through the Bladder Cancer Advocacy Network (BCAN) sponsored by Photocure. Jan. 2016 n=222, Jan. 2017 n=568, Jan. 2018 n=550, Jan. 2019 n=600 17
Slide 18: Activated Awareness: AUA 2019 – A Success
“ACTIVATED” AWARENESS AUA 2019 – A SUCCESS BLC™ with Cysview® was featured in several sessions at the AUA meeting, including: • Blue Light Cystoscopy for the diagnosis of Bladder Cancer - Dr. Badrinath Konety, University of Minnesota • Surgical Techniques: Tips & Tricks: Oncology - Dr. Yair Lotan, U
Slide 19: Activated Awareness: EAU 2019 – Blue Light Flex Cystoscopy on the Main Stage
“ACTIVATED” AWARENESS EAU 2019 – BLUE LIGHT FLEX CYSTOSCOPY ON THE MAIN STAGE • Dr. Yair Lotan, M.D., Professor of Urology, University of Texas Southwestern Medical Center presented on “Blue Light Flexible Cystoscopy with Hexaminolevulinate for Surveillance of Bladder Cancer”. 19
Slide 20: Activated Awareness: Media/Advertising Programs: Providers
“ACTIVATED” AWARENESS MEDIA/ADVERTISING PROGRAMS: PROVIDERS HCP UroToday UroCare Live: LUGPA
Slide 21: Accelerate: Optimized and Focused US Commercial Footprint
ACCELERATE OPTIMIZED AND FOCUSED US COMMERCIAL FOOTPRINT Targeting top 750 Reference Centers and major LUGPA and IDNs Re-focused Existing Headcount • 27 Sales Reps – Key Hospitals • 4 Key Account Managers – LUGPA & IDNs (Integrated Delivery Networks) • 4 Regional Managers LUGPA = Large Urology Group
Slide 22: Financials
Financials
Slide 23: Segment Performance First Quarter 2019
SEGMENT PERFORMANCE FIRST QUARTER 2019 Amounts in NOK million Commercial Franchise Q1 ’19 Q1 ‘18 Change FY ‘18 • Continued strong revenue growth in US, first Commercial Franchise quarter revenue growth in US$ 52% Nordic revenue 13.1 12.1 8% 47.0 – Installed base of rigid and flex BLC 171 at quarter
Slide 24: Consolidated Income Statement First Quarter 2019
CONSOLIDATED INCOME STATEMENT FIRST QUARTER 2019 • Recurring EBITDA significantly improved from Amounts in NOK million Q1 ‘19 Q1 ‘18 Change FY ‘18 last year. Improvement is revenue driven Hexvix/Cysview revenue 51.2 40.7 26% 172.9 – Increased Hexvix/Cysview revenue driven by US Other revenue 1.0 0.9
Slide 25: Cash Flow First Quarter 2019
CASH FLOW FIRST QUARTER 2019 • Cash flow from operations first quarter at NOK Amounts in NOK million Q1 ’19 Q1 ‘18 FY ’18 -15.7 million, improvement from Q1 last year of Operational cash flow -15.7 -18.5 -24.1 NOK 2.8 million – Improvement driven by improved EBITDA EBITDA, recurring -1.5 -4.0 -10.5
Slide 26: Balance Sheet 31 March 2019
BALANCE SHEET 31 MARCH 2019 31.03 31.12 • Non current assets Amounts in NOK million 2019 2018 – Investments of NOK 21.5 million in tangible and Non current assets 84.9 77.8 intangible assets is driven by investments in Investments 21.5 24.6 Cysview phase 3 project Tax asset 53.4 52.4 – Deferred tax
Slide 27: Summary and Outlook
Summary and Outlook —_ es
Slide 28: 2019 Outlook
2019 OUTLOOK Growth drivers USA Growth drivers Europe • Optimized customer facing commercial team • Strongly recommended by • Target 750 largest reference center hospitals European/National guidelines and LUGPAs • Strengthened customer facing • BLC™ Recommended in bladder cancer commercial team in N