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ArcticZymes Technologies — Investor Presentation 2015
Mar 12, 2015
3538_iss_2015-03-12_91804181-feef-4f2a-9b8a-0f180d9cf3df.pdf
Investor Presentation
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Biotec Pharmacon ASA
Carnegie Healthcare Seminar 12th March 2015 Svein W. F. Lien – CEO
Outline
Company overview
Financial highlights
Business areas
Summary
Tromsø
This is Biotec Pharmacon
Biotec BetaGlucans
- Proprietary Beta-Glucans. Immunomodulary substance activating the immune system
- Focus on Wolugan® Gel, an advanced "medical device" for treatment of advanced wounds
- A large market in need of new product
- Supply of Beta-Glucans to animal health and nutrition
ArcticZymes
- Business based on unique cold adapted enzymes for the life science industry
- Core role in PCR contamination control
- Strong IP position for marketed products
- Large unexploited market
- Strong pipeline secured through strategic alliances
25 years of research in key areas – strong IP based science
Outline
Company overview
Financial highlighs
Business areas
Summary
Financial highlights
| NOK million | Q4 2014 |
Q4 2013 | 2014 | 2013 |
|---|---|---|---|---|
| Enzymes | 4.3 | 4.0 | 16.3 | 15.8 |
| Beta-Glucans | 5.7 | 1.3 | 16.8 | 6.3 |
| Sales revenues | 10.0 | 5.3 | 33.0 | 22.1 |
| Enzymes | -1.1 | -0.5 | -3.8 | -2.6 |
| Beta-Glucans | -4.7 | -5.8 | -17.4 | -18.9 |
| EBITDA | -5.8 | -6.3 | -21.2 | -21.6 |
| Profit before tax | -5.8 | -6.7 | -22.0 | -22.9 |
* The segment figures reflect that all costs are allocated to the two operating units
Solid financial head room
| NOK million |
Q4 2014 |
Q4 2013 | 2014 | 2013 |
|---|---|---|---|---|
| Operating activities | 1.3 | -0.9 | -21.2 | -17.4 |
| Investing activities | -0.5 | -0.9 | -1.9 | -1.6 |
| Financing activities | 0.9 | 0 | 77.7 | 43.2 |
| Changes in cash and cash equivalents |
1.6 | -1.8 | 54.6 | 24.3 |
| Cash and cash equivalents at the beginning of period |
86.7 | 35.5 | 33.7 | 9.4 |
| Cash and cash equivalents at end of period |
88.3 | 33.7 | 88.3 | 33.7 |
Outline
Company overview
Financial highlighs
Business areas
Summary
Different products – one source
Woulgan® Biogel
- Unique product based on proprietary beta-glucans
- Advanced medical device; Class 3, Rule 13 – can argue for an ancillary medicinal product effect
- CE mark approved in April 2014
- Main initial indications will be diabetic ulcers, leg ulcers, pressure ulcers and burns
Broad indication area
• The European market counts ~9 million wounds in the initial indication areas
Diabetic ulcers, leg ulcers, pressure ulcers, burns
• Approved also for other major wound areas
Post-surgery wounds, trauma wounds, lacerations, and abrasions
Europe represents ~1/3 of the total available global wound market
Clear beneficial effects
SBG™ effect in healing of diabetic foot ulcers covered in article published in the 2014 Journal of Diabetes:
"Macrophage stimulating agent soluble yeast b-1,3/1,6 glucan as a topical treatment of diabetic foot and leg ulcers: A randomized, double blind, placebo-controlled phase II study" –Zykova et al 2014
0 10 20 30 40 50 60 0 1 2 3 4 5 6 7 8 9 10 11 12 Duration of therapy (weeks)
44% healing after 8 weeks vs 17% with placebo 56% healing after 12 weeks vs 37% with placebo
Patients with complete healing (%)
Woulgan® Biogel market penetration route
| Market Segments: | Paid by: | ||
|---|---|---|---|
| Hospitals and Wound Clinics | Dependent on country but normally funded by Budget |
||
| Primary Care | Reimbursement = National application and process |
||
| OTC/Individuals | Reimbursement and individuals |
Smith & Nephew evaluation study
- The market evaluation study carried out by Smith & Nephew is continuing at 8 sites in UK and 10 sites in Germany
- The study is expected to be completed by the end of Q1 2015
- Preliminary results from the evaluation study published at "Wounds UK" in December
- Biotec and Smith & Nephew continue the process to clarify the basis for a long-term agreement while the study is being completed
Strong strategic position
- As the exclusivity agreement with Smith & Nephew has expired, consequently strengthening the Company's strategic position, parallel and attractive routes to commercialize Woulgan® Biogel are pursued
- With the strong test feedback for Woulgan® Biogel, the company is confident that the product can obtain a strong market position in the advanced wound care market
- Several regional and global alternatives exist
- However, being a novel advanced product, it will require a clear focus and a strong priority by any partner(s) to obtain a high market penetration and to receive the market position the product deserves. This focus and priority is key when selecting the market channels going forward
Woulgan® Biogel status Norway
- Biotec facilitated a soft launch in Norway at the annual conference of the Norwegian Wound Healing Society 5-6 th of February 2015
- More than 400 delegates attended the event
- The intention of the launch is to facilitate Norwegian health care professionals to use the product and test the market potential for Woulgan Biogel in a limited market without disturbing the overall partner process
- At the launch event, Biotec BetaGlucans presented the results from a survey among Norwegian healthcare professionals (HCP) whom have tested Woulgan® Biogel in a clinical setting
Survey design and specifics
Survey Norway (56 pasients pr 13.Febr)
Survey design and specifics II
Survey Norway (56 pasients pr 13.Febr)
Results: High degree of patient comfort
Results verify Woulgan® Biogel potential
Survey Norway (56 pasients pr 13.Febr)
The other Biotec BetaGlucan areas
- Cancer
- Continue cooperation with Memorial Sloan Kettrin Cancer Center in New York and explore other opportunities for drug adjuvant
- Nutrition
- Exclusive agreement expires January 2016
- Explore opportunities and consider positioning
- Animal health
- Reentered the market during 1st half of 2014
- Supply agreement with Skretting
- Seeking other business alternatives
Outline
Company overview
Financial highlighs
Business areas
Summary
ArcticZymes
Develops, manufactures and sells unique marine enzymes for molecular DNA/RNA analysis used in research and diagnostics
Cold adapted enzymes - beneficial properties
Cold adapted enzymes can be inactivated easily by heat after use, providing simpler workflow, safer and more sensitive assays
Marine bioprospecting in practice
- Unique enzymes based on genetic information from the marine Arctic
- In close cooperation with academic institutions
- ArcticZymes formulates, develops and manufacture customized applications
B2B partnering means long term focus
- The majority of molecular biology business is related to large multinational corporations and specialised diagnostic players
- ArcticZymes shall be a creative and reliable long term partner to these companies
- The future is a mix of own unique products and customer initiated development
- ArcticZymes access to bioprospecting and library is unique and key to success
25 It's not just products – it's partnering
Outline
Company overview
Financial highlighs
Business areas
Summary
Summary and 2015 outlook
Biotec BetaGlucans
- Woulgan® Biogel represents a game changer for the company
- Market evaluation for Woulgan® Biogel by Smith & Nephew expected to be concluded by the end of Q1 2015
- Following the completion of the study, Biotec Pharmacon expects to enter into agreement(s) with distribution partner(s)
ArcticZymes
• Establishing commercial relations with most of the larger players in the molecular diagnostics and research market. Appointing a limited number of regional distributors for sale of own label products
Q&A
Svein W. F. Lien Mob: +4792289323 Email: [email protected] www.biotec.no