USCOM LIMITED — Investor Presentation 2015

Jun 25, 2015

**Investor

Presenta,on June
2015 Global
Momentum**

Rob Phillips PhD(med), MPhil(med), FASE, DMU(cardiol) Associate Professor, Critical Care Research Group, School of Medicine, The University of Queensland CEO

The Measure of Life

1

Disclaimer

This
presenta,on
is
intended
to
provide
a
general
outline
only
and
is
not
intended
to
be
a
defini,ve statement
on
the
subject
ma9er.
The
informa,on
in
this
presenta,on,
whether
wri9en
or
verbal,
has been
prepared
without
taking
into
account
the
commercial,
financial
or
other
needs
of
any
individual or
organisa,on. While
Uscom
(the
"Company”)
has
taken
due
care
in
compiling
the
informa,on,
neither
the
Company nor
its
officers
or
advisors
or
any
other
person
warrants
the
accuracy,
reliability,
completeness
or ,meliness
of
the
informa,on
or
guarantees
the
commercial
or
investment
performance
of
the Company.
Certain
informa,on
may
relate
to
protected
intellectual
property
rights
owned
by
Uscom. The
informa,on
does
not
cons,tute
advice
of
any
kind
and
should
not
be
relied
on
as
such.
Investors must
make
their
own
independent
assessment
of
the
Company
and
undertake
such
addi,onal enquiries
as
they
deem
necessary
or
appropriate
for
their
own
investment
purposes.
Any
and
all
use of
the
informa,on
is
at
your
own
risk.

2

3

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http:// news.bbc.co.uk /2/hi/uk_news/england/nottinghamshire/8525901.stm

Uscom Vision

Company
of
the
Year,
2014 Johnson
&
Johnson
Innova9on
Industry
Excellence
Awards “A
milestone
driven
Australian
bio
device company,
with
real
products,
real
revenue,
and real
growth
which
is
approaching profitability…”

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4

Current Business

§ Premium
noninvasive
cardiovascular
monitoring
devices

§ Addressing
the
growing
threat
of
superbugs

§ Validated,
clinically
accepted,
cost
and
life
saving
devices

§ Patent
protected
with
regulatory
approvals

§ Rapidly
growing
revenues
in
major
markets
and
mul,ple
untouched
markets

**Board

&
Management**

Corporate

• § ASX
  listed
  (UCM)

• § Rob
  Phillips,
  Chairman
  &
  CEO

• § Headquartered
  in
  Sydney

• § Sheena
  Jack,
  Director

  • (HCF,
    Money,me
    Health)

• § Market
  cap
  of
  $18m

• § Chris,an
  Bernecker,
  Director (Stream)

• § 80m
  shares
  on
  issue

• § Rob
  Phillips,
  Founder
  and § Nick
  Schicht,
  General
  Manager

• CEO,
  holds
  21%
  of company

**2015

Financials**

• § Sales
  +125%
  H1
  2015
  YOY[] § Revenue
  +147%
  H1
  2015 YOY[]

• § Gross
  Margins
  ~
  78%

• § Cash
  at
  bank
  $0.60m[**]

5

• Includes
  revenue
  to
  ME
  May
  15
  plus
  probable
  sales
  for
  June
  15 **
  Quarter
  ended
  31
  March

Current Products

**USCOM

1A Cardiac
Output
Monitor**

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**USCOM

1A**

• § World
  leading
  technology
  offering
  huge
  poten,al savings
  to
  global
  healthcare
  systems

• § Sold
  into
  hospitals,
  emergency
  departments,
  ICUs, anesthesia
  and
  paediatrics

• § Growing
  global
  distribu,on
  and
  revenue
  –
  US targeted Non-­‐invasive,
  real
  9me,
  beat-­‐to-­‐beat haemodynamics

BP+ Blood
Pressure
Monitor

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BP+

• § Next
  genera,on
  blood
  pressure
  monitoring providing
  central
  and
  brachial
  BP
  measurement

• § Sold
  to
  hypertension
  &
  research
  clinics
  and
  ICUs § Pulsecor
  acquired
  and
  integrated
  by
  Uscom
  in 2012
  now
  preparing
  for
  mass
  market

• § US
  targeted

A
stand-­‐alone,
non-­‐invasive,
accurate and
compact
system

6

Targeting Strong Revenue Growth

USCOM
1A BP+ Cardiac
Output
Monitor Blood
Pressure
Monitor

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USCOM
1A

• § US$1.3bn global
  market
  with
  CAGR
  of
  7.6%[*
  ]

• § Increasing
  unit
  sales globally

• § Australian reimbursement
  expected
  Q1
  2016

• § 80%
  Gross
  Margins &
  $12k
  profit
  /
  unit[**]

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BP+

§ US$1.7bn global
market
with
CAGR
of
11.5%[
] § US$7m
$1.4m
pa China
distribu,on
agreement signed[**]

§ US reimbursement
obtained
for
Q1
2016

§ 70%
Gross
Margins &
US$1.1k
profit
/
unit[**]

• ---

Source:
MedTech
Insight;
Transparency
Market
Research

Average
(figures
vary
from
sale
to
sale)

Global
revenues
which
are
only just
beginning
to
be
tapped

• **

Distribu,on
con,ngent
on
CFDA
approval

7

Uscom Growth

**Fluid,

Sepsis &
Heart
Failure**

• § US
  1.3bn
  market[

• ]

• § CAGR
  of
  7.6%[
  *]

**Hypertension

& Vascular
Health**

• § US
  1.7bn
  market[
  *]

• § CAGR
  of
  11.5%[
  *]

+

USCOM
1A Cardiac
Output
Monitoring

BP+ Blood
Pressure
Monitoring

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Complementary
products
and
technology

8

• Source:
  MedTech
  Insight;
  Transparency
  Market
  Research

Growth in Distribution

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Distribution Agreements
40
34
35
+30%
30
27
25
+125%
20
15
12
10
5
0
2013 2014 2015
----- End of picture text -----*

Further
distribu9on
growth
through investment
in
people

9

• FY to date

Under NDA

Sales and Profit Trends

Quarterly Sales Revenue

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$600k
$500k
$400k
$300k
$200k
$100k
$0k
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----- Start of picture text -----

Annual Net Loss
2011 2012 2013 2104 2015 2016
$0k
-$500k
-$1,000k
-$1,500k
-$2,000k
-$2,500k
-$3,000k
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A
number
of
key
future
USCOM
1A
and
BP+ revenue
drivers
already
in
train

10

• Estimate

BP+ US Reimbursement

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US
Category
1
CPT
Code
recommended by
AMA
CPT
panel § Provides
financial
model
for
Drs
to
use
BP+ § CPT
Category
1
Code
(9300X1)
BP+
has
US
FDA
clearance § Non-­‐invasive
calcula,on
and
analysis
of
central
arterial
pressure waveforms
with
interpreta,on
and
report § Effec,ve
January
2016 Key
revenue
driver
for
BP+
in
the
most
important market
globally*

11

USCOM 1A Around the World

• •• ••• •[•] •[•][•] • • • •[•] •[•] •• • •[•] • • • • • • • • • • • • •[[•]]

•[[•]]

Over
700
USCOM
units
sold
worldwide

12

Uscom Products

_**Two

products
each
at commercializa9on
phase**_

	Concept	Product	Pilot	Valida,on	Regulatory	Revenue	Global Distribu,on	Proft 2016
USCOM	✓	✓	✓	✓	✓	✓	✓	±✓
Uscom BP+	✓	✓	✓	✓	✓	✓	✓	±✓

Turning
unrecognised
IP
into
balance
sheet
value

13

Regulatory Strategy

_ *Global

regulatory
approvals**_

Global regulatory approvals *	Global regulatory approvals *	Global regulatory approvals *
§ Both devices are FDA, CE and TGA approved § Next step is CFDA approval for BP+
	USCOM 1A	BP+
FDA	✓	✓
CE	✓	✓
CFDA	✓	P
TGA	✓	✓

✓ Approved

P[Preparation for submission ]

14

Reimbursement Strategy _**Head

of
reimbursement
affairs
appointed**_

	USCOM 1A	Uscom BP+
MSAC (Aus)	Ini,ated	Background
CPT (USA)	Background	Granted
NHS (UK)	Review	Background
ROW	-	-

Timelines

§ USCOM
1A :
Australia
Aug
2015;
UK
Oct
15;
US
2016 BP+ § :
Australia
Nov
2015;
UK
Nov
2015

Reimbursement
a
key
driver
of
future sales
revenue

15

Broad Patent Portfolio

_**Core

technology
patent
protected,
with
patents
running
to 2024
and
beyond**_

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USCOM
1A

22 § granted
patents

§ 5 pending
applica,ons

BP+

34 § granted
patents

§ 4 registered
trademarks

§ 2 registered
trademarks

IP
protected
in
key
markets

16

De-Risked Technology Featured
in
400+
peer
reviewed
publica9ons
and
presenta9ons

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Sepsis, Heart failure, Hypertension, Fluid management, Emergency, Pediatrics, Cardiac transplantation, Electrophysiology, Emergency transport, Anesthesia, Liver transplantation, ICU, Pre-eclampsia, Pulmonary hypertension, Nurse outreach, Organ procurement, Haemodialysis, Neonates, infants, Children etc……..

17

USCOM Saving Lives

• § 10
  Million
  women
  get
  pre-­‐eclampsia
  per
  year

• § 76,000
  mothers
  die
  per
  year
  (200
  per
  day)
  and
  500,000 unborn
  babies
  (1300
  per
  day)

• § Early
  detec,on
  and
  treatment
  associated
  with
  be9er outcomes

• § USCOM
  detects
  pre-­‐eclampsia
  at
  5
  weeks
  not
  20
  weeks as
  current

• § USCOM
  recommended
  as
  pregnancy
  screening
  method to
  detect
  pre-­‐eclampsia
  –
  one
  USCOM
  in
  every obstetrician’s
  office?

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G.M.
Tiralongo,
D.
Lo
Pres,,
I.
Pisani,
G.
Gagliardi,
R.L.
Scala,
G.P.
Novelli,
B.
Vasapollo,
A.
Andreoli,
H.
Valensise.
Assessment
of
total vascular
resistance
and
total
body
water
in
normotensive
women
during
the
first
trimester
of
pregnancy.
A
key
for
the
preven,on
of preeclampsia.
Hypertension
pregnancy
2015;
5(2):DOI:
hcp://dx.doi.org/10.1016/j.preghy.2015.02.001

18

USCOM Saving Lives _**Na9onal

ICU
Study
–
Sepsis
and
sep9c
shock
mortality 6yr
Australian
Prac9ce
Audit
ANZICS
CORE
Adult
database**_

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----- Start of picture text -----

30
25
20
15
BUSH protocol
10
introduced
5
0
2006 2007 2008 2009 2010 2011 2012
Bathurst USCOM Australia Australian Rural
----- End of picture text -----

Smith
BE,
Phillips
RA,
Madigan
V,
West
MJ.
Decreased
Mortality,
Morbidity
and
Emergency
Transport
in
Sep,c
Shock;
A
New
Protocol

Based
on
Advanced
Noinvasive
Haemodynamics
(USCOM)
and
Early
An,bio,cs.
Crit
Care
Med
2012;
40(12):1023.
doi:
10.1097/01.ccm. 0000424114.76434.7a

19

USCOM Reducing Costs Na9onal
ICU
Study 6
yr
Australian
Prac9ce
Audit
ANZICS
CORE
Adult
database Mean Cost per Admission 2007- 2012

$60,000
	$48,000
$50,000
$40,000		$41,645
$30,000			$26,273
$20,000
$10,000
$0
	Australian	Australian Rural	BUSH

Mean
cost
per
hospitalisa,on
for
sepsis
and
sep,c
shock
pa,ents
between
2007
-­‐
2012 assuming
$1233
per
ward
day
and
$4427
per
ICU
day.

Smith
BE,
Phillips
RA,
Madigan
V,
West
MJ.
Decreased
Mortality,
Morbidity
and
Emergency
Transport
in
Sep,c
Shock;
A
New
Protocol

Based
on
Advanced
Noinvasive
Haemodynamics
(USCOM)
and
Early
An,bio,cs.
Crit
Care
Med
2012;
40(12):1023.
doi:
10.1097/01.ccm. 0000424114.76434.7a

20

USCOM 1A Competitive Advantage

Method	Manufacturer	Technology	Rel+Rep	Non- invasive	Simple	Cost	Portable	SV beat to beat
USCOM 1A	Uscom	Doppler	✓	✓	✓	✓	✓	✓
BioZ	Samsung	BioImpedance	✗	✓	✓	✗	✓	✗
NiCOM	Cheetah	BioReactance	✗	✓	✓	✗	✓	✗
Nexfin	Bmeye	APP	✗	✓	✓	✓	✓	✗
CardioQ	Deltex	Doppler	✓	✗	✓	✗	✓	✗
LiDCO	LiDCO	LiCl dilutio +APP	✓	✗	✗	✗	✗	✗
LiDCOrapid	LiDCO	APP	✗	✗	✓	✗	✗	✗
PiCCO (mod Tx + PP)	Pulsion	APP	✓	✗	✗	✗	✗	✗
FloTrac	Edwards	APP	✗	✗	✗	✗	✗	✗
PAC (Tx)	Many	Thermodilution	✗	✗	✗	✗	✗	✗

21

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BP+ Competitive Advantage

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Uscom BP+	TensioMed	BPLab	IEM	Centron	AtCor
Australia	Hungary	Russia	Germany	UK	Australia
USD 3,950	USD 6,000	USD 7,000	USD 7,000	USD 6,300	USD 14,000
1 min	2 min	2 min	2 min	1 min	1 min
Stand-alone	ABP, needs computer	ABP, needs computer	ABP, needs computer	Stand-alone	Needs computer
CE, FDA, TGA	CE	CE	CE, FDA	CE	CE, FDA
Aortic + brachial waveform	Central systolic BP	Rough waveform	Rough waveform	Rough waveform	Rough waveform
Physical model	Statistical regression	Transfer function	Transfer function	Transfer function	Transfer function

22

Indicative pricing and may vary in different markets

✓

Why ?

Independent published research – BP+ most clinically applicable cBP monitor

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Cambridge University, Weill Cornell, University of California, Wales Heart Institute

McEniery CM, Cockcroft JR, Roman MJ, Franklin SS, Wilkinson AB. Central blood pressure: current evidence and clinical importance. Euro Heart J 2014;doi10.1093/eurojeartj/eht565

23

Uscom - The measure of life

Testimonials

“This
machine
is
saving
lives,
there
are
no
two
ways
about
it.”

Professor
Brendan
Smith,
AnestheCst,
Intensivist
and
Emergency
Physician,
N.S.W.
Dept
of
Health,
Australia

“USCOM
has
changed
the
way
I
look
at
the
cardiovascular
status
of
my
paCents. It’s
part
of
the
iniCal
shock
evaluaCon
and
monitored
regularly
thereaPer….
USCOM
has
now
been established
as
the
standard
of
care.”

Dr
Akash
Deep,
Director
of
Paediatric
ICU,
King's
College
Hospital,
London

“The
USCOM
device
is
a
simple
method
of
accurately
and
noninvasively
measuring
central
circulaCon,
a goal
of
cardiology
for
many
years.
The
device
has
the
potenCal
to
change
the
way
we
approach management
of
sepsis,
heart
failure
and
hypertension.”

Professor
Malcolm
West,
Cardiologist,
Mayne
Professor
of
Medicine
at
The
University
of
Queensland
School
of
Medicine,
Brisbane,
Australia
and
Uscom
Medical
Advisory
Board Member.

“I
have
used
USCOM
for
over
5
years
now
on
our
very
sick
children,
and
use
it
to
guide
management. We
are
now
beginning
mulC-­‐centre,
global
research
which
will
define
the
way
USCOM
is
used
in Paediatric
Departments
across
the
world.”

Dr
Joe
Brierley,
Consultant
Intensivist,
Great
Ormond
Street
Hospital
for
Sick
Children,
London,
UK.

“The
USCOM
device
is
really
good;
I
use
it
in
all
my
aneastheCcs.
I
think
there
should
be
one
on
every ICU
bed
and
on
every
anaestheCc
paCent.”

Dr
Steve
Woodford,
Consultant
AnaestheCst,
circulatory
researcher
at
Australian
School
of
Advanced
Medicine,
and
Uscom
Investor,

“To
parents
and
doctors
this
machine,
USCOM,
is
priceless.
This
machine
is
thought
to
have
saved
baby

Abbie’s
life.

BBC
Documentary
“New
machine
helps
save
babies
life”,
2010,
No]ngham
Children’s
Hospital

24

Revenue Drivers

ü USCOM
1A
growth

ü US
BP+
Re-­‐imbursement
-­‐
CPT
category
1
code
(9300X1)
effecCve
January 2016

ü BP+
CFDA
–
China
sales

ü USCOM
1A
and
BP+
sales
pipeline
growing
(Pioneer
+
Europe)

ü Increased
distribuCon
(Uscom
and
BP+)
–
increases
revenue
for
all
products ü New
clinical
science

ü 2
products
–
airacCve
to
higher
volume
distributors

25

Uscom

Value
at
many
levels

✓ Revenue
growth ✓ Approved
products ✓ Life
saving
clinical
applicaCons ✓ Growing
organisaCon ✓ Global
opportuniCes

26

**Investor

Presenta,on June
2015**

Thank You

Rob Phillips

PhD(med), MPhil(med), FASE, DMU(cardiol) Associate Professor, Critical Care Research Group, School of Medicine, The University of Queensland

CEO

The Measure of Life Uscom - The measure of life

27