Investor Presentation • Oct 27, 2022
Investor Presentation
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October 27th, 2022
This presentation has been prepared by and is the sole responsibility of Gentian Diagnostics ASA (the "Company" or "Gentian"). The presentation is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The information herein and any other material discussed is subject to change.
The presentation contains certain forward-looking statements relating to the business, future financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. Any forward-looking statements contained herein, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts
which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Potential investors are expressly advised that financial projections, such as the revenue and cash flow projections contained herein, cannot be used as reliable indicators of future revenues or cash flows. The Company (nor any of its parent or subsidiary undertakings) does not provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments. No obligation is assumed to update any forward-looking statements or to conform these forwardlooking statements to our actual results.
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Nothing in this presentation shall constitute an offer to sell or a solicitation of an offer to buy any shares in the Company in any jurisdiction in which such offer or solicitation is unlawful.
Nothing contained in this presentation is or should be relied upon as a promise or representation as to the future. Except where otherwise expressly indicated, this presentation speaks as of the date set out on its cover. In addition, no responsibility or liability or duty of care is or will be accepted by the Company for updating this presentation (or any additional information), correcting any inaccuracies in it which may become apparent or providing any additional information.
The growing diagnostic market puts increasing pressure on laboratories. Still, many of the existing, clinically relevant biomarkers are only available on slow and inefficient platforms.
By converting biomarkers to the most efficient automated, high-throughput analysers, Gentian contributes to saving costs and protecting life.
Ambition to bring a steady stream of high-impact diagnostic tests to market
Annual revenue ambition of NOK 1bn in 4-6 years**
USD 1.3bn serviceable market with 8-9% annual growth
Team with proven trackrecord and industry expertise
2 'blockbuster' tests in market and product development
CEO Hilja Ibert
25+ years' experience from the international diagnostic industry, including VP International Diagnostic Solutions at Hologic and senior positions within Becton Dickinson and bioMerieux. She was previously the CEO for miDiagnostics in Belgium. Dr. Ibert holds a PhD degree in Nutrition Science from the University of Bonn, Germany.
CFO & COO
20+ years experience and extensive track-record from financial management and reporting, corporate governance and Investor Relations. Mr. Kind has served as the CFO for TiZir, UK, Business Analyst in Eramet Comilog Manganese, France, and Investment Director in Tinfos. Kind holds a MSc from BI Norwegian Business School.
Njaal Kind
CSO Erling Sundrehagen
Erling Sundrehagen, cofounder of Gentian, holds 25 int. patents. He has headed the development of a dozen diagnostic products, creating businesses with NOK 1bn+ revenue. Dr. Sundrehagen held management positions in Axis-Shield, Axis Biochemicals and Axis Research, and is dr.med. & cand.real from University of Oslo, Norway.
CCO Markus Jaquemar
30+ years experience in life science and diagnostics commercialisation and marketing. He held marketing, sales and business management positions at Beckman Coulter, Agilent Technologies and Becton Dickinson. He holds a Master's degree in Biology from Vienna University, Austria.
VP Science/Clinical Alexandra Havelka
Extensive experience in laboratory medicine. She was previously Biochemist and Unit Manager at Karolinska University Laboratory, with research focusing on biomarkers for inflammation and infection. Dr Havelka holds a PhD in Experimental Oncology from Karolinska Institute in Stockholm, Sweden.
VP R&D Torsten Knüttel
18+ years' experience from the diagnostic industry and commercial supply chain. His background includes OEM/B2B business development at Thermo Fisher Scientific and development and production at GE Healthcare. He holds a PhD in Chemistry from the Leibniz University Hannover, Germany.
VP QA & RA Anne-Mette Horsrud Akre
20+ years of pharma industry experience, including production of pharmaceuticals and medical devices, quality management and assurance and management positions at GE Healthcare and Fresenius Kabi. She holds a Msc in Biotechnology from the Technical
VP BD Jack Andreassen
20+ years of experience from sales, market and business development from the global diagnostics industry. He was previously Associate Director, Global Market Development for OEM at Thermo Fisher. He holds a Msc in Chemistry, Biochemistry/Molecular Biology from the University of Oslo, Norway.
University of Trondheim,
Norway.
| DISEASE GROUP | PRODUCT | APPLICATION | ATTRACTIVE CLINICAL BENEFITS |
|---|---|---|---|
| Kidney disease |
Cystatin C | Early detection of reduced kidney function | Preventing severe kidney failure |
| Inflammation & infection |
fCAL | Fast diagnosis of inflammatory bowel disease | Reducing time-consuming and costly colonoscopy |
| GCAL | Early detection of severe infections, including sepsis | Reducing chance of fatality and treatment costs | |
| SARS-CoV-2 Ab | Measuring COVID-19 immunity | Supporting community management | |
| Canine CRP | Early detection and diagnosis of inflammation in dogs | High relevance of results due to dog specific CRP | |
| Cardiac | NT-proBNP | Diagnosis, monitoring and assessment of congestive heart failure |
Contributing to standardization of NT-proBNP assays |
| Pancreas | fPELA | Diagnosis of pancreatic elastase insufficiency in combination with fCAL |
Reducing time-consuming and costly colonoscopy |
Measuring NT-proBNP levels in plasma supports diagnosis of congestive heart failure. The Gentian assay will be the first test of its kind available on high-throughput analysers. It is equally precise as the currently available expensive and slower assays and can contribute to better diagnosis, monitoring and treatment. Additional benefits may include results standardization, which is a current issue with the existing assays in the market.
| Total Addressable Market, USDbn |
Total Serviceable Market, USDm |
Target market share, unrisked |
Gentian's revenue take |
Serviceable Market annual growth rate, next 4-6 years |
|
|---|---|---|---|---|---|
| Established products | 1.5 | 180 | ~25% | 30-50% | 5-10% |
| GCAL | 2.0 | 300 | ~15% | 30-50% | 15% |
| NT-proBNP | 1.6 | 800 | ~15% | 30-50% | 5-8% |
| SARS-CoV-2 Ab | 2.0 | 20 | ~25% | 50% | n.m. |
| Total | 7.1 | 1,300 | 15-25% | 30-50% | 8-9% |
Key risks include market adoption rates for GCAL, and successful launch of NT-proBNP
Sources: Kalorama 2020, company estimates. Note: Potential upside from 3 biomarkers in exploration and 'proof of concept' not included.
Total revenue* and CAGR Partnerships prove viability of go-to-market model
Global distribution agreement for GCAL®, initial roll-out in Europe
Long-standing commercial partnership for Cystatin C
Partnership for fCAL initiated through Bühlmann Laboratories
* Including grants and other non-customer related revenue.
| Sales | Gross margin |
|---|---|
| NOK 23.1m | 45% |
| +34% vs Q3'21 | 37% in Q3'21 |
| EBITDA | IVDR |
| NOK -6.1m | certification |
| NOK -4.2m in Q3'21 | achieved |
| MNOK | Q3 22 | Q3 21 | YTD 22 | YTD 21 |
|---|---|---|---|---|
| Europe | 17.3 | 12.4 | 52.0 | 42.0 |
| Asia | 3.1 | 4.3 | 16.3 | 17.4 |
| USA | 2.6 | 0.6 | 5.4 | 2.0 |
| Total | 23.1 | 17.2 | 73.7 | 61.4 |
| MNOK | Q3 22 | Q3 21 | YTD 22 | YTD 21 |
|---|---|---|---|---|
| Cystatin C | 8.7 | 7.3 | 30.6 | 25.7 |
| fCAL®turbo | 9.0 | 5.4 | 24.6 | 22.2 |
| Other | 5.4 | 4.5 | 18.6 | 13.5 |
| Total | 23.1 | 17.2 | 73.7 | 61.4 |
NOKm
| Q3 22 | Q3 21 | YTD 22 | YTD 21 | |
|---|---|---|---|---|
| Sales and marketing expenses |
3 760 | 3 338 | 15 166 | 11 080 |
| Administration expenses | 7 873 | 5 073 | 22 184 | 19 465 |
| Research and development expenses |
6 735 | 4 369 | 16 404 | 18 898 |
| Total | 18 368 | 12 780 | 53 754 | 49 443 |
| Cash NOK 93.9m NOK 131.3m in Q3'21 |
Capex NOK 3.1m NOK -1.0m vs Q3'21 |
|---|---|
| FCF | Break-even |
| NOK 1.8m | pre-R&D |
| NOK 7.9m vs Q3'21 | based on current revenue |
Four established products with potential to grow 20%+ annually
Prove clinical relevance of GCAL and bring NT-proBNP to market
Bring a steady stream of high-impact diagnostic tests to market
Secure one new contract with a global commercial partner per year
Grow gross margin from ~50% currently to 60%+ at volume production
revenue potential of
Revenue ambition
of NOK 1bn
in 4-6 years*
NOK 1bn
in 5-7 years
* Dependent on timing of NT-proBNP launch
| ESTABLISHED PRODUCTS | GCAL | SARS-COV-2 AB | NT-PROBNP | |
|---|---|---|---|---|
| S E N O T S E L MI |
Targeting additional large commercial partners, while increasing direct sales Bring additional established products to the market, including 3rd party products |
Securing additional global commercial partners and continue EU rollout Continue clinical study program confirming relevance for the early detection of infections Securing additional endorsements from key opinion leaders |
Initiating rollout in the EU with focus on the Nordics Entering commercial partnerships for the Nordics, while initiating direct sales |
Progress on remaining challenges in optimisation phase Publication on the reference method for standardisation Securing endorsements from key opinion leaders and global partners |
Pipeline: Finalize proof-of-concept of one new project
Employees
~50
Revenue 2021 NOK 100m Up 27% Oslo listing OSE: GENT Market cap ~NOK 0.6bn
A growing diagnostics market puts increasing pressure on clinical laboratory efficiency
Many of the existing, but clinically relevant biomarkers are available only on slow and inefficient platforms
Hours from initiation of analysis to results
Particle-enhanced turbidimetric immunoassays (PETIA) based on proprietary nanoparticle technology and knowhow
Converting existing biomarkers to the most efficient automated, high-throughput analysers
10 minutes from initiation of analysis to results
3-10x higher throughput significantly improves laboratory productivity and costefficiency
Early disease detection and faster availability of clinically relevant information leads to better treatment decisions
Avoiding interference enables conversion to PETIA
Antibodies: Proteins used by the immune system to identify bacteria and viruses
Avian antibodies: Extracted from hen eggs. Avoids interference due to lack of complement system binding antibodies and molecules, enabling analysis at lower concentrations than mammalian antibodies and conversion of existing biomarkers to PETIA
Advantages: Gentian uses avian antibodies when applicable and believes extraction from eggs rather than puncturing animals contributes to better animal welfare while also offering a cost advantage at scale
Removing separation steps increases throughput and reduces cost
Immunoassays: Biochemical tests measuring molecule presence or concentration in human cells using an antibody
Particle-enhanced turbidimetric immunoassays: Enables moving immunoassays from low-volume to high-volume clinical analysers
Advantages: Moving immunoassays to PETIA enables removing separation steps, which increases throughput and laboratory efficiency compared to the traditional ELISA and other methods
Note: Chance of launch refers to completion of the phase.
Ambition to secure one new contract with global commercial partner per year
Accelerating time to revenue and awareness
Distribution agreements in several European countries and South Korea for GCAL, Cystatin C and Canine CRP
Direct sales to select end-users and key opinion leaders, including laboratory and hospitals
| NOKm | Q3 22 | Q3 21 | 2021 |
|---|---|---|---|
| Sales | 23.1 | 17.2 | 83.1 |
| Other revenues |
2.0 | 2.2 | 16.9 |
| Total revenues | 25.1 | 19.4 | 100.0 |
| COGS | 12.8 | 10.8 | 43.2 |
| Employee benefit expenses | 10.0 | 8.9 | 39.5 |
| D&A | 2.7 | 2.4 | 7.4 |
| Other OPEX | 8.4 | 3.9 | 32.8 |
| EBITDA | -6.1 | -4.2 | -15.5 |
| EBIT | -8.7 | -6.6 | -22.8 |
| NOKm | Q3 22 | Q3 21 | 2021 |
|---|---|---|---|
| Operating activities | 4.9 | -2.1 | -27.1 |
| Investing activities |
-3.1 | -4.1 | -12.8 |
| Financing activities |
0.0 | -1.1 | -3.1 |
| Changes in cash and cash equivalent | 1.8 | -7.3 | -43.0 |
| Cash and cash equivalent at the beginning of period |
92.1 | 138.6 | 158.0 |
| Cash and cash equivalent at the end of period |
93.9 | 131.3 | 114.9 |
| Tomas Settevik |
Espen T. Jørgensen |
Tomas Kramar |
Kari E. Krogstad |
Susanne Stuffers |
Fredrik Thoresen |
Monika Neuman |
Frank Frantzen |
|---|---|---|---|---|---|---|---|
| Chair of the Board |
Board member | Board member | Board member | Board member | New board member |
New board member |
New board member |
| Tomas Settevik has experience in both life sciences and retail and is currently an independent investor and non - exec director in several companies. He was previously CEO of Stokke, and CEO of Pronova BioPharma after serving as Vice President Pharmaceuticals and Manufacturing. Mr. Settevik has also held several senior positions – VP Northern Europe, VP Marketing and R&D, and Managing Director UK/Nordic – at Tyco Healthcare EMEA. Mr. Settevik holds a degree from Copenhagen Business School. |
Espen Tidemann Jørgensen is currently Portfolio Manager of Holta Invest and Managing Director of Holta Life Sciences, a large shareholder in Gentian Diagnostics. He has 18 years of financial markets experience as equity analyst at DNB Markets and investor. Mr. Jørgensen was previously member of the Board of Directors at Weifa and Cortendo, and is currently board member at Decisions. Mr. Jørgensen holds a Msc in Economics and has completed 3 years of Medicine studies at the University of Oslo. |
Mr. Kramar has more than 40 years of experience from the diagnostic industry including Siemens, Abbott and Roche Diagnostics. Mr. Kramar has held several senior positions like Global Business Manager, Business Director and CEO, as well as being a founding partner in the Kramar Group. In addition, Mr. Kramar has held several board positions over the years. Mr. Kramar holds an MSc degree in Chemistry from the Faculty of Engineering at Lund University in Sweden. |
Kari Krogstad has more than 25 years of experience from the biomedical industry, from commercial leadership roles within the pharma, biotech and medtech sectors. Ms. Krogstad has held her current role as President and CEO at Medistim ASA since 2009. She was previously General Manager at Invitrogen Dynal. Ms. Krogstad holds a Cand. Scient. degree in Molecular Biology from the University of Oslo as well as a Business degree from IHM Business School. |
Susanne Stuffers is currently managing partner of P53 Invest AS. Previously she was an equity analyst with Arctic Securities covering the healthcare sector, and management consultant at EY. Ms. Suffers has held medical and commercial roles at Novartis and has had clinical practice as a resident in oncology at OUS Ullevål. Ms. Stuffers holds an M.D. degree from the Erasmus University Rotterdam and a Ph.D. degree in cancer biomedicine from the Norwegian Radium Hospital. |
Fredrik Thoresen is a partner in Andenaesgruppen where he joined in 2021. Mr. Thoresen has previous buy - and sell -side experience from Storebrand, SEB, DNB and Sector Asset Management. Mr. Thoresen has an MBA in International Business from Middlebury Institute of International Studies, Monterey, California and a bachelor's degree in Computer Science and Economics from Augustana University, Sioux Falls, South Dakota |
Monika Neuman has 20 years of experience from the diagnostics industry and is currently Managing Director for Sarstedt Group in the Nordics. During the past 4 years, Ms. Neuman has been working at Siemens Healthineers Laboratory Diagnostics HQ in Tarrytown, NY, to set a successful strategy for launch and implementation of a new product portfolio on the global IVD market. Ms. Neuman holds a MSc degree in Biochemistry and a PhD degree in Clinical Bacteriology from Medical Faculty at Göteborg University in |
Frank Frantzen has more than 35 years of experience from the diagnostic industry. He has served as principal scientist and has directed larger R&D units in international IVD companies Axis - Shield, Alere and Abbott. Mr. Frantzen left his Senior Director R&D position at Abbott in 2021 and is currently serving as Chief Technology Officer in CardiNor AS. Mr. Frantzen holds a master's degree in chemistry and a PhD, both from the Norwegian University of Science and Technology in Trondheim. |
Sweden.
| Shareholder | No of shares | % |
|---|---|---|
| Vatne Equity AS | 2 110 224 | 13.68% |
| Kvantia AS | 1 623 368 | 10.53% |
| Holta Life Sciences AS | 1 214 702 | 7.88% |
| Verdipapirfondet Delphi Nordic | 970 934 | 6.29% |
| Safrino AS | 800 000 | 5.19% |
| Skandinaviska Enskilda Banken AB | 489 000 | 3.17% |
| Salix AS | 390 689 | 2.53% |
| Verdipapirfondet DNB SMB | 361 291 | 2.34% |
| Verdipapirfondet Storebrand Vekst | 344 292 | 2.23% |
| Equinor Pensjon | 300 047 | 1.95% |
| Portia AS | 300 000 | 1.95% |
| Cressida AS | 235 000 | 1.52% |
| J.P. Morgan SE | 232 922 | 1.51% |
| Lioness AS | 220 000 | 1.43% |
| Marstal AS | 212 407 | 1.38% |
| Mutus AS | 210 465 | 1.36% |
| Carpe Diem Afseth AS | 208 797 | 1.35% |
| Krefting, Johan Henrik | 196 400 | 1.27% |
| Vingulmork Predictor AS | 184 083 | 1.19% |
| Silvercoin Industries AS | 175 657 | 1.14% |
| Other Shareholders | 4 642 612 |
30.10% |
| Total Shares | 15 422 350 |
100.00% |
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