Photocure ASA · OSL:PHO
Photocure ASA — Q4 2017 Earnings Presentation
21 slides from Photocure ASA's earnings presentation, Feb 27, 2018
Slide 1: Results for Fourth Quarter and Full Year 2017
PHOTOCURE ASA RESULTS FOR FOURTH QUARTER AND FULL YEAR 2017 27 FEBRUARY 2018 Kjetil Hestdal, MD, President & CEO Erik Dahl, CFO
Slide 2: Disclaimer
DISCLAIMER The information included in this Presentation contains certain forward-looking statements that address activities, events or developments that Photocure ASA (“the Company”) expects, projects, believes or anticipates will or may occur in the future. These statements are based on various as
Slide 3: Delivering on Key 2017 Objectives
DELIVERING ON KEY 2017 OBJECTIVES • US sales revenue up 27% YoY in 4Q and 39% FY, driven by in-market volume increase in 4Q of 21% and 31% FY Increase growth of Cysview® in US based • New increased CMS reimbursement for Blue Light Cystoscopy (BLC™) with on increased investment in US Cysview for use
Slide 4: Hexvix/Cysview Update
Hexvix/Cysview Update
Slide 5: Hexvix/Cysview Two Significant Milestones Reached
HEXVIX/CYSVIEW TWO SIGNIFICANT MILESTONES REACHED Working closely with CMS1 to Q3’13 Q2’17 Sep-17 Jan-18 provide appropriate stronger New ruling reduces payment CMS proposes an AUA and Congressional New reimbursement opportunity for to hospitals using Cysview, increase in members sends reimbursement
Slide 6: Expanded US Market Opportunity Through Supplemental New Drug Approval
EXPANDED US MARKET OPPORTUNITY THROUGH SUPPLEMENTAL NEW DRUG APPROVAL • February 2018 obtained US FDA approval of an extension of the Cysview indication • Blue Light Cystoscopy (BLC) with Cysview indicated to be used in bladder cancer patients undergoing surveillance cystoscopy for bladder cancer •
Slide 7: Medicare Reimbursement of an Additional USD 1,000 per TURBT from 2018
MEDICARE REIMBURSEMENT OF AN ADDITIONAL USD 1,000 PER TURBT FROM 2018* Medicare (~55% of TURBT) Private payer (~45% of TURBT) • Procedure fee for cystoscopy • Procedure fee for cystoscopy • Cysview paid at contracted rate (ASP** +6 to Cystoscopy • Cysview paid at ASP** +6% 15%) • No change from 2017
Slide 8: Maximizing Sales Efficiency Targeting Top US Markets
MAXIMIZING SALES EFFICIENCY TARGETING TOP 25 US MARKETS – FOCUS ON 400 MAJOR HOSPITALS • Focus efforts to establish and build TURBT Heat Map and current BLC accounts Cysview business in top 25 TURBT markets (MSAs) • 400 major hospitals represents ~40% of total US TURBT market • Established well know
Slide 9: Increasing Market Awareness of BLC with Cysview Among Bladder Cancer Patients
INCREASING MARKET AWARENESS OF BLC WITH CYSVIEW AMONG BLADDER CANCER PATIENTS Patient Survey Questions? January January 2018 2017 Number of patients participated in the survey* 550 568 Percentage of patients received BLC with Cysview 87% 79% Percentage of patients where BLC with Cysview 88% 81% help
Slide 10: Significant Growth Opportunity with New US Label
HEXVIX/CYSVIEW SIGNIFICANT GROWTH OPPORTUNITY WITH NEW US LABEL BLC with Total Number Number of Market Peak sales value with Peak sales value with Peak sales value with Cysview of Cystoscopy Procedures potential in 5% market share in 10% market share in 20% market share in top Market Procedures in t
Slide 11: Hexvix/Cysview Continued Strong Momentum in US
HEXVIX/CYSVIEW CONTINUED STRONG MOMENTUM IN US Approval in • Photocure own sales revenue in the US in 2017 Receive surveillance market increased 39% YoY Increase US reimbursement code in US • Driven by YoY in-market volume growth of 31% market penetration Increase • Permanent Blue Light Cystoscope p
Slide 12: Record Hexvix Sales Revenue in Nordic in 4Q2017
HEXVIX/CYSVIEW RECORD HEXVIX SALES REVENUE IN NORDIC IN 4Q2017 • Photocure own sales revenue in the Nordics increased YoY 35% in fourth quarter to NOK 12.9 MNOK and 11% FY • Driven by growth in Norway and Denmark, with Denmark reversed following the decline earlier in 2017 • In market unit growth of
Slide 13: Hexvix/Cysview Partner Update
HEXVIX/CYSVIEW PARTNER UPDATE In-market unit sales (by Q) • Partner revenue increased 17% YoY in fourth quarter, driven by inventory build-up • In-market unit sales declined 9% partly due to uneven purchase patterns and partly to declined demand. Germany at level with 4Q 2016 • Full year revenue gro
Slide 14: Financials
Financials
Slide 15: Segment Performance Fourth Quarter 2017
SEGMENT PERFORMANCE FOURTH QUARTER 2017 MNOK Q4 '17 Q4 '16 FY '17 FY '16 Commercial Franchise: Commercial Franchise • Hexvix/Cysview total revenue increased YoY 25% in the Nordic revenues 12.9 9.6 43.3 39.0 fourth quarter. Growth in all regions, partly driven by US revenues 10.2 8.0 42.4 30.5 invent
Slide 16: Consolidated Income Statement Fourth Quarter 2017
CONSOLIDATED INCOME STATEMENT FOURTH QUARTER 2017 • Total revenue increases YoY 3% fourth quarter and 5% MNOK Q4 '17 Q4 '16 FY '17 FY '16 full year Hexvix / Cysview revenues 39.4 31.6 149.0 131.0 – Strong growth for Hexvix/Cysview partly offset by Other sales revenues (API) 0.0 5.2 0.2 5.2 reduction
Slide 17: Cash Flow Fourth Quarter 2017
CASH FLOW FOURTH QUARTER 2017 • Cash flow from operations fourth quarter NOK 7.5 MNOK Q4 '17 Q4 '16 FY '17 FY '16 million, full year NOK -23.6 million Cash flow from: – Working capital impact full year NOK 6.4 million - Operations 7.5 49.9 -23.6 19.2 (FY 2016 NOK -8.8 million) - Investments -1.2 25.
Slide 18: Balance Sheet December 2017
BALANCE SHEET 31 DECEMBER 2017 MNOK 31.12 31.12 • Year end working capital at NOK 6.0 million (2016: 2017 2016 NOK 12.4 million) Non-current assets 87.5 74.1 • Non current assets include NOK 34.6 million in Inventory & receivables 46.2 43.0 investments in tangible and intangible assets and Cash & eq
Slide 19: Summary and Outlook
Summary and Outlook
Slide 20: Delivering on Key 2017 Objectives
DELIVERING ON KEY 2017 OBJECTIVES • US sales revenue up 27% YoY in 4Q and 39% FY, driven by in-market volume increase in 4Q of 21% and 31% FY Increase growth of Cysview® in US based • New increased CMS reimbursement for Blue Light Cystoscopy (BLC™) with on increased investment in US Cysview for use
Slide 21: Focus & Objectives 2018
FOCUS & OBJECTIVES 2018 • Continue investment in the US operations to increase Cysview revenues and achieve 2020 revenue target Increase growth of Cysview® in US • Expand the number of hospitals with blue light enabled scopes TURBT market market • Continue to increase the awareness of the medical be