Investor Presentation • Aug 25, 2021
Investor Presentation
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August 25th, 2021
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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Hilja Ibert
CEO
Njaal Kind CFO & COO
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.
7* tests contributing to saving costs and protecting life
Revenue ambition of NOK 1bn in 5-7 years
Delivered ~30% annual revenue growth 2017-20
• Increasing average age and population growth drives increase in chronic diseases and infectious diseases globally
Addressable Market: Total demand within targeted markets 2020 (Kalorama 2020). Serviceable Market: The segment of the TAM targeted by Gentian's products (company estimates). Gentian's target market share is ~15-20%. Share of revenues net of partner take is 30-50% on average with product variations. Market growth rates = CAGR.
60%+ Gross margin at volume production
Long-term EBITDA margins 40%
| Sales | EBITDA |
|---|---|
| NOK 25m | NOK -1m |
| +48% vs Q2'20 | NOK -1m vs Q2'20 |
| Cash | Profitable |
| NOK 139m | pre-R&D |
| NOK -22m vs Q2'20 | based on current revenue from four established products |
The early inflammation and infection biomarker GCAL ® is the first calprotectin test available on high-throughput analysers, with first sales realized in 2019. Clinical studies confirm the potential of GCAL ® for the early detection and prediction of severe infectious diseases. Sepsis kills 11 million people each year, and fast results provided by GCAL ® could save lives and significantly reduce healthcare costs.
The aim with SARS-CoV-2 Ab, measuring COVID-19 immunity, is to offer the first such test for high-throughput analysers with focus on commercialisation in the Nordic markets.
Gentian's NT-proBNP is the first test to support diagnosis of congestive heart failure available on high-throughput analysers – contributing to better diagnosis, monitoring and treatment.
Partnerships prove viability of go-to-market model
Long-standing commercial partnership for Cystatin C
Partnership for fCAL initiated through Bühlmann Laboratories
Collaboration agreement for Canine CRP
3 NOKm
NOKm
| NOKm | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 |
|---|---|---|---|---|
| Sales | 24.6 | 16.6 | 44.2 | 32.9 |
| Other revenues |
6.9 | 3.2 | 11.5 | 6.1 |
| Total revenues | 31.5 | 19.9 | 55.7 | 39.0 |
| COGS | 11.4 | 6.3 | 21.8 | 16.2 |
| Employee benefit expenses | 8.7 | 9.4 | 18.4 | 18.4 |
| D&A | 2.0 | 1.6 | 4.0 | 3.1 |
| Other OPEX | 12.3 | 3.9 | 18.3 | 9.1 |
| EBITDA | -0.9 | 0.2 | -2.8 | -4.7 |
| EBIT | -2.8 | -1.3 | -6.8 | -7.8 |
| NOKm | Q2 21 | Q2 20 | H1 21 | H1 20 |
|---|---|---|---|---|
| US | 1.0 | 1.0 | 1.4 | 1.7 |
| Europe | 15.7 | 9.9 | 29.7 | 21.1 |
| Asia | 7.9 | 5.7 | 13.1 | 10.1 |
| Total | 24.6 | 16.6 | 44.2 | 32.9 |
| NOKm | Q2 21 | Q2 20 | H1 21 | H1 20 |
|---|---|---|---|---|
| Cystatin C | 11.1 | 8.5 | 18.5 | 15.0 |
| fCAL® turbo | 8.3 | 3.9 | 16.7 | 9.2 |
| Other | 5.2 | 4.3 | 9.0 | 8.7 |
| Total | 24.6 | 16.6 | 44.2 | 32.9 |
OPEX
| NOKm | Q2 21 | Q2 20 | H1 21 | H1 20 |
|---|---|---|---|---|
| Sales and marketing expenses |
3.7 | 3.0 | 7.8 | 6.4 |
| Administration expenses |
8.9 | 6.0 | 14.4 | 11.0 |
| Research and development expenses |
10.7 | 5.0 | 18.3 | 10.7 |
| Total | 23.3 | 14.0 | 40.5 | 28.1 |
| NOKm | Q2 21 | Q2 20 | H1 21 | H1 20 |
|---|---|---|---|---|
| Operating activities | -2.9 | 1.1 | -11.8 | -8.6 |
| Investing activities |
-4.0 | -1.2 | -6.2 | -1.7 |
| Financing activities |
-0.6 | -0.1 | -1.2 | -0.1 |
| Changes in cash and cash equivalent | -7.5 | -0.2 | -19.2 | -10.4 |
| Cash and cash equivalent at the beginning of period |
146.1 | 161.4 | 158.0 | 171.6 |
| Cash and cash equivalent at the end of period |
138.6 | 161.2 | 138.6 | 161.2 |
| ESTABLISHED PRODUCTS | GCAL® | SARS-COV-2 AB | NT-PROBNP | |
|---|---|---|---|---|
| S | Targeting additional large commercial partners |
Clinical studies confirming relevance for early detection of infections and with this the |
Successful validation and launch, scheduled for Q4 2021 |
Successful verification during 2021 |
| E N O T S E L |
Additional regulatory approvals, including IVDR* |
support to avoid sepsis and the severity assessment of COVID 19 patients – 6 ongoing |
Entering commercial partnerships for the Nordics |
Publication on the reference method for standardisation |
| MI 022 021-2 |
Securing endorsements from key opinion leaders |
Successful validation and launch, scheduled for Q1 2022 |
||
| 2 | Securing global commercial partnerships and continuation of EU rollout |
Securing endorsements from key opinion leaders and global commercial partnerships |
Further potential milestones in pipeline with 3 biomarkers currently in exploration and 'proof of concept'
* IVDR: A new regulation coming into force 26 May 2022, requiring extensive documentation of the safety, performance and quality of each diagnostic test from manufacturers through several studies on both analytical and clinical performance.
Employees
~50
Revenue 2020 NOK 79m Up 32% OSE: GENT
~NOK 0.9bn
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
| 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 |
| Total Addressable Market, USDbn |
Total Serviceable Market, USDm |
Target market share, unrisked |
Gentian's revenue take |
Serviceable Market annual growth rate, next 5-7 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 | 15-20% | 30-50% | 8-9% |
Key risks include market adoption rates for GCAL, and successful launch of NT-proBNP
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
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
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.
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.
CFO & COO
20+ years experience and
financial management and reporting, corporate governance and Investor Relations. Mr. Kind has served as the CFO for
in Eramet Comilog Manganese, France, and Investment Director in Tinfos. Kind holds a MSc from BI Norwegian Business School.
Njaal Kind
VP R&D Torsten Knüttel
extensive track-record from TiZir, UK, Business Analyst 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 Clinical Affairs 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 Global Sales 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 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 University of Trondheim,
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.
Norway.
| Tomas Settevik |
Espen Tidemann Jørgensen |
Ingrid Teigland Akay |
Kari E. Krogstad |
Susanne Stuffers |
Runar Vatne |
Tomas Kramar |
|---|---|---|---|---|---|---|
| Chair of the Board |
Board member | Board member | Board member | Board member | Board member | 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. 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. |
Ingrid Teigland Akay is a life science investor and medical doctor. She has previously served as a Senior Investment Manager at Inventages. Ms. Akay has broad clinical experience in internal medicine and surgery at Scandinavian and UK hospitals. Today she is Managing Partner of Hadean Ventures, a life science investment firm with focus on the Nordics. Ms. Akay holds a medical degree from Medizinische Hochschule Hannover and an MBA in Finance from London Business School. |
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. |
Mr. Vatne is the principal and owner of Vatne Capital, a family office investing in financial assets and real estate. He is co-founder of Søylen Eiendom, a leading Oslo based real estate company, and was previously partner and stock broker in Pareto Securities. Mr. Vatne also serves as board member of listed companies Solon Eiendom ASA and Self Storage Group ASA. Vatne and associated companies currently own 14.49% of the outstanding shares in Gentian Diagnostics AS. |
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. |
| Shareholder | No of Shares | % |
|---|---|---|
| Vatne Equity AS | 2 010 224 | 13,04 % |
| Norda ASA | 1 250 068 | 8,11 % |
| Holta Life Sciences AS | 1 188 702 | 7,71 % |
| Safrino AS | 1 050 000 | 6,81 % |
| Verdipapirfondet Delphi Nordic | 817 045 | 5,30 % |
| Salix AS | 786 903 | 5,11 % |
| Skandinaviska Enskilda Banken AB | 783 903 | 5,09 % |
| Verdipapirfondet Storebrand Vekst | 425 572 | 2,76 % |
| Verdipapirfondet DNB SMB | 377 682 | 2,45 % |
| Equinor Pensjon | 337 320 | 2,19 % |
| Portia AS | 300 000 | 1,95 % |
| Cressida AS | 235 000 | 1,52 % |
| Lioness AS | 220 000 | 1,43 % |
| Silvercoin Industries AS | 214 692 | 1,39 % |
| Marstal AS | 212 407 | 1,38 % |
| Mutus AS | 210 465 | 1,37 % |
| Vingulmork Predictor AS | 184 083 | 1,19 % |
| Bård Sundrehagen | 181 645 | 1,18 % |
| OM Holding AS | 179 000 | 1,16 % |
| Viola AS | 170 916 | 1,11 % |
| Other Shareholders | 4 276 262 | 27,75 % |
| Total Shares | 15 411 889 |
100.00% |
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