Photocure ASA · OSL:PHO
Photocure ASA — Q3 2020 Earnings Presentation
28 slides from Photocure ASA's earnings presentation, Nov 10, 2020
Slide 1: Photocure ASA Results for 3rd quarter 2020
Photocure ASA Results for 3rd quarter 2020 10 November 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”) for
Slide 3: Thousands of bladder cancer patients have received our breakthrough product
Thousands of bladder cancer patients across the Photocure Marketing Authorization Partner for Marketing Authorization world have received our breakthrough product Partner - Marketing Authorization in process Direct sales in U.S. & Europe with worldwide partnerships Approved for use in $32M ~30 total
Slide 4: Our Mission: Delivering transformative solutions to improve the lives of bladder cancer patients
Our Mission: Delivering transformative solutions to improve the lives of bladder cancer patients Photocure’s four step strategy to deliver on our mission & vision 4 3 Transform Build a global Bladder Cancer Company 2 Acquire Partner and in-license Build pipeline – partner/ acquisitions 1 Expand Gene
Slide 5: Highlights in the 3rd quarter
Highlights in the 3rd quarter: European Partnership +17% +14% operations news: U.S. unit sales Hexvix/Cysview live on Cevira NMPA approval growth Revenue Growth to start P3 in China (adjusted) 1 October Genotests: Hexvix in Chile Photocure – Presentation of Q3 2020 Results 5
Slide 6: Bladder cancer has been chronically underserved
Bladder cancer has been chronically underserved COMMON (6th most common cancer worldwide1) EXPENSIVE Highest USD 550K 200K per patient new cases annually1 deaths annually of which 75% lifetime treatment costs of any 5.7B Cost of Bladder Cancer in the U.S., projection are men1 cancer2 for 20203 RECUR
Slide 7: Blue Light Cystoscopy: Creating a New Standard of Care
Blue Light Cystoscopy: Creating a New Standard of Care “You cannot treat what you cannot see!” Improved detection vs. white light cystoscopy alone1–4 Hexvix®/Cysview® is a drug that preferentially accumulates in bladder cancer cells, making them glow bright pink during blue light cystoscopy5 Hexvix
Slide 8: Supportive environment for becoming the standard of care
Supportive environment for becoming the standard of care for the detection & management of bladder cancer Recommended in global & national guidelines: Photocure – Presentation of Q3 2020 Results © Photocure - Confidential 8
Slide 9: The Patient Journey: Characterized by long term follow-up with repeat procedures
The Patient Journey: Characterized by long term follow-up with repeat procedures NMIBC MIBC Urologist performs TURBT initial cystoscopy procedure, biopsy to Blood in the If suspected confirm Chemotherapy or urine or other bladder cancer diagnosis, BCG treatment symptom diagnosis, refer remove all ba
Slide 10: Q3 2020 Financials
Q3 2020 Financials Photocure – Presentation of Q3 2020 Results 10
Slide 11: Q3 Financial Highlights - Strong Development Negatively Impacted by one-off Transition Costs
Q3 Financial Highlights - Strong Development Negatively Impacted by one-off Transition Costs Amounts in NOK million Reported Q3 ‘20 Transition Impact * Adjusted Q3 ‘20 Q3 ‘19 Strong Sales Development in Key Markets U.S. volume growth 17% Unit Sales (‘000) 16.9k - 16.9k 15.8k Europe volume growth 7%
Slide 12: Segment Performance Third Quarter 2020
Segment Performance Third Quarter 2020 Commercial Franchise Amounts in NOK million Q3 ’20 Q3 ‘19 Change YTD ’20 YTD ‘19 Change U.S.: Q3 Revenue increase of 20% reflecting rebound Commercial Franchise from Covid-19 U.S. Revenue 30.3 25.2 20% 80.1 70.9 13% Q3 unit sales 17% above last year Nordic Reve
Slide 13: Consolidated Income Statement
Consolidated Income Statement Third Quarter 2020 Revenue, Significant One-off Items Amounts in NOK million Q3 ‘20 Q3 ‘19 Change YTD ‘20 YTD ‘19 Change Excluding one-off’s Q3 YoY revenue increases 13% Hexvix®/Cysview® Revenue 49.6 51.1 -3% 157.5 154.4 2% Q3 2020: Transition items Ipsen NOK 8.9 millio
Slide 14: Cash Flow
Cash Flow Third quarter 2020 Cash Flow from Operations Amounts in NOK million Q3 ’20 Q3 ‘19 YTD ’20 YTD ‘19 Operations Cash Flow -9.9 9.9 4.5 -9.8 Q3 impacted by lower earnings than prior year as well Earnings before Tax -14.2 5.3 -32.8 -7.4 as inventory return from Ipsen (working capital). Working
Slide 15: Balance Sheet
Balance Sheet 30 September 2020 2020 2019 2019 Non-Current Assets Amounts in NOK million Sept. 30 Sept. 30 Dec. 31 Net investments of NOK 5.9 million, driven by investments in Cysview Non-Current Assets 226.7 73.1 70.5 phase 3 project. This project will be fully amortized in 2020 Investments 5.9 16.
Slide 16: Launching Hexvix Operations in Europe on October
Launching Hexvix® Operations in Europe on 1 October Photocure – Presentation of Q3 2020 Results 16
Slide 17: Large Untapped Potential in the 150 Mill EUR European Market
Large Untapped Potential in the 150 Mill EUR European Market Europe U.S. Established Photocure Europe: 165,000 new US: 82,500 new cases Markets cases and more than and more than 18,000 50,000 deaths annually1 deaths annually1 Nordics: 40% penetration EU5: 360,000 TURBTs US: 315,000 TURBTs Ave. Hexvi
Slide 18: Launching Hexvix Operations in Europe
Launching Hexvix® Operations in Europe Key commercial resources in place and direct promotion initiated on 1 October 100% of previously Ipsen DACH Hexvix sales force now employed by Photocure ensuring no disruption in service and support Distribution channels built across all of Europe Legal Entitie
Slide 19: U.S. Positioned for Growth
U.S. Positioned for Growth Photocure – Presentation of Q3 2020 Results 19
Slide 20: U.S. demonstrated strong signs of recovery in Q3
U.S. demonstrated strong signs of recovery in Q3 amidst Covid-19 resurges with 17% unit growth from Q3 2019 3500 1400 3000 1200 2500 1000 YTD KITS BY QUARTER 2000 800 KITS 1500 600 1000 400 500 200 0 Q1 Q2 Q3 0 QUARTERS BY YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP 2018 2019 2020 2018 2019 2020 Photoc
Slide 21: U.S.: Continued blue light cystoscope placements despite challenges of pandemic
U.S.: Continued blue light cystoscope placements despite challenges of pandemic Annual New Installations Cumulative install base continues strong trend Tower placements by year 70 300 65 60 250 33 50 54 26 220 200 197 40 150 8 150 30 30 * 100 20 23 104 21 18 83 15 14 50 65 10 51 11 36 25 0 0 2012 20
Slide 22: Hexvix/Cysview key market enablers in place: ready for growth
Hexvix®/Cysview® – key Market enablers in place: ready for growth and our Ambition to become the standard of Care POSITION IN THE LIFE CYCLE KEY SUCCESS FACTORS Penetration 100% APPROVAL SURGICAL & SURVEILLANCE 75% ACCEPTANCE MAJOR & LOCAL GUIDELINES* 50% PERMANENT AND FAVORABLE Nordic ACCESS REIMBU
Slide 23: Increasing media attention for the BLC procedure and bladder cancer
Increasing media attention for the BLC® procedure and bladder cancer AUA News article Sept 2020 UroToday 11 and 24 June, 13 September 2020 Norwegian patient association magazine Sept 2020 Photocure – Presentation of Q3 2020 Results
Slide 24: Increasing media attention by Photocure taking over Hexvix in Europe markets
Increasing media attention by Photocure taking over Hexvix in Europe markets HealthTalk Norway 6 October 2020 Dagens Medisin 5 October 2020 Finansavisen 18 August 2020 Photocure – Presentation of Q3 2020 Results Finansavisen 1 July 2020 24
Slide 25: Summary and outlook
Summary and outlook Photocure – Presentation of Q3 2020 Results 25
Slide 26: Guidance: approximately 1bn revenue in 2023
Guidance: approximately 1bn revenue in 2023 Current-year guidance: In Q3 the rebound continued Potential increased pressure on revenue in Q4 due to COVID-19 impact: Hospitals are better prepared for a second wave of the pandemic Procedures may be postponed Restricted access to the OR Capital equipme
Slide 27: Our Mission: Delivering transformative solutions to improve the lives of bladder cancer patients
Our Mission: Delivering transformative solutions to improve the lives of bladder cancer patients Photocure’s four step strategy will deliver our mission 4 3 Transform 2 Acquire Build a global Bladder Cancer Company 1 Expand Partner and in-license Build pipeline – partner/ acquisitions synergistic as
Slide 28: Leading change in bladder cancer Q&A
Leading change in bladder cancer Q&A Photocure – Presentation of Q3 2020 Results 28