Investor Presentation • Feb 16, 2023
Investor Presentation
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February 16th, 2023
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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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.
USD 1.8bn serviceable market with 5-10% annual growth
Team with proven trackrecord and industry expertise from market leading IVD companies
Long-term ambition of NOK 1bn revenue and 40% EBITDA margin**
2 'blockbuster' tests in market and product development
| 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 |
Avoidance of underestimation of NT-proBNP due to glycosylation |
| Pancreas | fPELA | Diagnosis of pancreatic elastase insufficiency in combination with fCAL |
Reducing time-consuming and costly colonoscopy |
| Total Addressable Market, USDm |
Total Serviceable Market, USDm |
Target market share, unrisked |
Gentian's revenue take |
Serviceable Market annual growth rate, next 4-6 years |
|
|---|---|---|---|---|---|
| Established products | 2,200 | 220 | ~25% | 30-50% | 5-10% |
| GCAL infection (sepsis) |
1,000 | 440 | ~15% | 30-50% | 7% |
| GCAL inflammation | 1,250 | 250 | Under evaluation | 30-50 | Under evaluation |
| NT-proBNP | 1,700 | 900 | ~15% | 30-50% | 5-10% |
| Total | 6,100 | 1,810 | >15% | 30-50% | 5-10% |
Key risks to target market shares include market adoption rates for GCAL, and successful launch of NT-proBNP
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 which should increase laboratory productivity and reduce overall costs. Additional benefit may include addressing the underestimation issue caused by glycosylation.
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
Njaal Kind
Consulting Founder Erling Sundrehagen
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. 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.
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 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.
CSO
Norway.
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,
Global distribution agreement for GCAL®, initial roll-out in Europe
Long-standing commercial partnership for Cystatin C
Partnership for fCAL initiated through Bühlmann Laboratories
| Sales | Gross margin |
|---|---|
| MNOK 27.9 | 50% |
| +28% vs 4Q21 | 48% in 4Q21 |
| EBITDA | New GCAL |
| MNOK -1.5 | distribution |
| MNOK -8.5 in 4Q21 | agreement |
NOKm
| MNOK | 4Q22 | 4Q21 | 2022 | 2021 |
|---|---|---|---|---|
| US | 1.1 | 0.5 | 6.5 | 2.5 |
| Europe | 19.5 | 13.6 | 71.5 | 55.6 |
| Asia | 7.3 | 7.6 | 23.6 | 25.0 |
| Total | 27.9 | 21.7 | 101.6 | 83.1 |
| MNOK | 4Q22 | 4Q21 | 2022 | 2021 |
|---|---|---|---|---|
| Cystatin C | 9.4 | 10.5 | 40.0 | 36.2 |
| fCAL®turbo | 11.7 | 5.8 | 36.3 | 28.0 |
| Other | 6.8 | 5.4 | 25.3 | 18.9 |
| Total | 27.9 | 21.7 | 101.6 | 83.1 |
NOKm
| MNOK | 4Q22 | 4Q21 | 2022 | 2021 |
|---|---|---|---|---|
| Sales and marketing expenses |
6.3 | 4.1 | 21.5 | 15.1 |
| Administration expenses | 5.8 | 13.3 | 28.0 | 32.8 |
| Research and development expenses |
6.4 | 5.5 | 22.8 | 24.4 |
| Total | 18.5 | 22.9 | 72.3 | 72.3 |
| Cash | Capex | ||||
|---|---|---|---|---|---|
| MNOK 81.6 | MNOK 1.1 | ||||
| MNOK 114.9 in 4Q21 | MNOK 2.6 in 4Q21 | ||||
| FCF | Equity ratio | ||||
| MNOK -11.6 | 82.1% | ||||
| MNOK -15.7 in 4Q21 | 82.2% at year-end 2021 | ||||
| Free cash flow positive pre-R&D |
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% in 2021 to 60%+ at volume production
revenue potential of NOK 1bn in 5-7 years Revenue ambition of NOK 1bn in 4-6 years*
* Dependent on timing of NT-proBNP launch
| ESTABLISHED PRODUCTS | GCAL | NT-PROBNP | PIPELINE | |
|---|---|---|---|---|
| S E N O T S E L MI |
Targeting additional large and medium size commercial partners globally Additional regulatory approvals |
Clinical studies confirming patient outcomes and relevance for the early detection of infections, which supports the avoidance of sepsis as well as diagnosis of inflammatory diseases Securing endorsements from key opinion leaders and inclusion in clinical guidelines Securing further global commercial partnerships with phased regional rollout |
Successful optimisation of the assay Securing endorsements from key opinion leaders Obtain progress on global commercial partnerships |
Finalise proof of concept of two new projects Identify and confirm opportunities in exploration phase |
Aiming to bring a steady stream of high-impact diagnostic tests to the market and all the way to commercial success
2001
Employees
~50
Total revenue 2022 MNOK 112 Up 12% Oslo listing OSE: GENT Market cap ~BNOK 0.6
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
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
| MNOK | 4Q22 | 4Q21 | 2022 | 2021 |
|---|---|---|---|---|
| Sales | 27.9 | 21.7 | 101.6 | 83.1 |
| Other revenues |
3.0 | 3.2 | 10.3 | 16.9 |
| Total revenues | 30.1 | 24.9 | 111.9 | 100.0 |
| COGS | -13.8 | -10.6 | -52.6 | -43.2 |
| Employee benefit expenses | -10.3 | -12.3 | -40.9 | -39.5 |
| D&A | -2.8 | -1.0 | -10.2 | -7.4 |
| Other OPEX | -8.2 | -10.6 | -31.4 | -32.8 |
| EBITDA | -1.5 | -8.5 | -13.0 | -15.5 |
| EBIT | -4.3 | -9.5 | -23.2 | -22.8 |
| MNOK | 4Q22 | 4Q21 | 2022 | 2021 |
|---|---|---|---|---|
| Operating activities | -10.5 | -13.1 | -15.5 | -27.1 |
| Investing activities |
-1.1 | -2.6 | -14.8 | -12.8 |
| Financing activities |
-0.1 | -0.1 | -2.7 | -3.1 |
| Changes in cash and cash equivalent | -12.4 | -16.5 | -33.0 | -43.0 |
| Cash and cash equivalent at the beginning of period |
93.9 | 131.3 | 114.9 | 158.0 |
| Cash and cash equivalent at the end of period |
81.6 | 114.9 | 81.6 | 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 | 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, 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 Sweden. |
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. |
| 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 | 973 999 | 6.32 % |
| Safrino AS | 800 000 | 5.19 % |
| Skandinaviska Enskilda Banken AB | 492 150 | 3.19 % |
| Salix AS | 363 235 | 2.36 % |
| Verdipapirfondet DNB SMB | 361 291 | 2.34 % |
| Verdipapirfondet Storebrand Vekst | 341 484 | 2.21 % |
| J.P. Morgan SE | 325 000 | 2.11 % |
| Portia AS | 300 000 | 1.95 % |
| Equinor Pensjon | 245 047 | 1.59 % |
| Krefting, Johan Henrik | 236 500 | 1.53 % |
| Cressida AS | 235 000 | 1.52 % |
| Verdipapirfondet Equinor Aksjer NO | 227 880 | 1.48 % |
| Carpe Diem Afseth AS | 221 797 | 1.44 % |
| Lioness AS | 220 000 | 1.43 % |
| Marstal AS | 212 407 | 1.38 % |
| Mutus AS | 210 465 | 1.36 % |
| Vingulmork Predictor AS | 184 083 | 1.19 % |
| Other Shareholders | 4 523 718 |
29.33 % |
| Total shares | 15 422 350 | 100 % |
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