2015 Full Year Results
Transatlantic Healthcare Technology Group
Focused on value creation through execution
François R Martelet, M.D. Chief Executive Officer Mark Nanovich Interim CFO 7 April 2016
2015 Full Year Results Transatlantic Healthcare Technology Group - - PowerPoint PPT Presentation
2015 Full Year Results Transatlantic Healthcare Technology Group Focused on value creation through execution Franois R Martelet, M.D. Chief Executive Officer Mark Nanovich Interim CFO 7 April 2016 Disclaimer This present at ion is not an
2015 Full Year Results
Transatlantic Healthcare Technology Group
Focused on value creation through execution
François R Martelet, M.D. Chief Executive Officer Mark Nanovich Interim CFO 7 April 2016
NetScientific Group PLC
Francois R. Martelet, M.D – 20 years industry experience
Digital Health, Diagnostics & Therapeutics
Divested non-core investments with significant savings
High calibre CEO’ s recruited for Wanda, ProAxsis, Vortex, Glycotest
£18.2m fundraising
£23.2m available cash resource, divestment of non-core assets Portfolio
Critical patent granted. Manufacturing partners selected to support placements
S ignificant team scale up, new software releases
Commercial launch of first lab-based immunoassay in Q3. New data released
Continued development of HCC panel and added board member
Development of the alpha prototype
Biotechnology Positive preliminary data showing strong T-cell responses in pre-cervical cancer
Full year results: highlights
2015 was a turnaround year for the Group
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NetScientific Group PLC
Professor S tephen S mith – distinguished clinician, ex-CEO and entrepreneur
Ian Postlethwaite to j oin, ex-FD at Allergy Therapeutics. Lean PLC team in London Portfolio
VTX-1 instrument to be shipped to leading US researches in Q2 for Beta testing
Two new commercial agreements in Q1 – HRS & Dignity Health (Oncology)
World class S cientific Advisory Board appointed
Medical Advisory board appointed
Biotechnology S igned a Cooperative Research and Development Agreement with the US National Cancer Institute to co-develop novel cancer immunotherapies through Phase II clinical trials
Post period-end highlights
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Vijay Barathan, MD Chief Investment Officer Ian Postlethwaite CFO (start date TBD) Francois Martelet, MD CEO
Healthcare Investment Banker Peel Hunt and Piper Jaffray Medical Doctor NHS
Ernest Schneider Commercial-Legal Director
Partner Reynolds Porter Chamberlain and Mishcon De Reya Founder Schneider Page FD Allergy Therapeutics Senior finance positions as AFS, Ericsson, Philips Electronics CEO Topotarget CEO Avax Technologies Senior positions at Merck & CO, Novartis, Schering-Plough and Eli Lilly
PLC Group management team strong and focused
CEO, Chairman of GSK Chairman NHS London Rector Imperial College Fellow Royal Society & Academy
President of Medtronic President of Lederle President of BMS Europe
Jonathan Paisner NED Barry Wilson NED Sir Richard Sykes Chairman
Founder LMN Capital Lawyer Mathias Gentle Page Hassan Board Shore Capital
NED
CEO Imperial College Trust Dean Medicine, Dentistry and health science University of Melbourne Founder Metris Therapeutics and GNI Group
PLC Board significant experience to leverage and build value
Strong and focused management team and Board
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USA UK
Digital Health Diagnostics Therapeutics Digital Health Diagnostics
Listing AIM (NSCI) Funds raised c.£48m
51,075,695 Share price (6/ 4/ 2016) 72.5p Market Cap (6/ 4/ 2016) £37m Shareholders (>3% ) 45.1% Woodford Investment Management 18.1% Invesco Asset Management 9.2% JO Hambro 20.4% Azima Family Trusts
NetScientific’s mission is to change the paradigm of care in chronic diseases
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Commercial st age Development st age
Gene Walther Steve Curd David Ribeiro Larry Cohen
Leadership Deputy Director Gates Foundation Chairman GenturaDx President diagnostics Novartis and Chiron CIO United Health COO WebMD COO NANTHEALTH CEO CareinSync Business Manager EU Pharmaxis Unit Director Pfizer Global product Director Solvay CEO Exalenz Bioscience CEO SenGenix CEO IVD Solutions President ITC VP J&J Product Cancer diagnostic instrument for isolation and collection of circulating tumour cells Advanced chronic disease management platform based on machine learning Respiratory diagnostic test for monitoring patients with Cystic Fibrosis and COPD Blood tests for liver diseases Business model Instrument and consumable cartridge sales Clinical research labs Software as a service Providers/ payors/ pharma Test kits and point of care device sales Pharma/ clinics/ home Lab sales CLIA labs Grant funding £1.6m £7.7m £1.0m £5.9m NetScientific Investment as at 31 Dec 15 £5.6m (£6.9m as at 31 Mar 16) £5.1m (£6.0m as at 31 Mar 16) £0.1m (£0.6m as at 31 Mar 16) £1.2m (£1.5m as at 31 Mar 16) NetScientific shareholding 95% 71.3% 56.5% 87.5% 7
Game changing portfolio with new management teams
2016 / 2017 – building value in PLC
Exit
Priority Portfolio
Growth Capital Pipeline
Capital returned to shareholders
Series A financings
IPO / M&A
H2 2016 2017
Global institutions, technology incubators, deep healthcare network 8
Financials – results for the year
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2015 £’000 2014 £’000 Loss from Continuing operations 11,229 6,179 Loss from Discontinued operations 1,517 948 Loss for the year 12,746 7,127 Loss from Continuing operations R&D 7,256 3,098 G&A 3,182 2,495 Other costs 1,077 717 Tax credit/Income (286) (131) 11,229 6,179
Financials – balance sheet & cash flow
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2015 £’000 2014 £’000 Balance Sheet - highlights Cash at bank ** 23,239 16,867 Investment in PDS 1,757 1,757 Net assets 24,583 18,696 ** Balance as at 31 March 2016 - £19.5m Cash flow Net proceeds Capital raising 17,147
(10,714) (6,631) Other (273) (2,189) Increase/(decrease) in cash 6,160 (8,820)
PLC has completed its turnaround
value creation with game-changing assets PLC is working on building shareholder value
from portfolio company financings
eries A for Wanda, ProAxsis and Glycotest
Summary and outlook
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Executive summary
technology that could revolutionize cancer research, drug development, diagnosis, monitoring and treatment
(sensitivity)
also providing clinical information from CTCs
* J.P. Morgan Liquid Biopsy Report – May 27, 2015
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The Company
Career Award for Science and Engineering) winner Dino Di Carlo at UCLA
liquid biopsy market
and marketing staff and critical publications will drive demand
medical devices
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Leadership team
Elodie Sollier-Christen, Ph.D
CSO & VP R&D
Michael Kochersperger
CTO & VP Engineering
Diagnostics
Gates Foundation
for blood sample prep.
Gene Walther, MBA
CEO
Steven Crouse, MBA
CCO
Bob Englert, MBA
VP Manufacturing
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Circulating tumor cells (CTCs) detach from a solid tumor and enter the blood stream playing a crucial role in cancer metastasis. Challenges to CTC isolation
blood
Vortex liquid biopsy captures circulating tumor cells…
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Technology
‘focused’ into an equilibrium position
‘Vortex’
analysis in cytopathology, propagation, drug development, treatment selection/effectivity and next generation sequencing
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VTX-1 Workflow
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CTC Analysis (Viability, Purity, Automation)
CTC Enumeration (Efficiency, Cost)
* JP Morgan liquid biopsy report – May 27, 2015
CTC potential
$22B market by 2020*
Cancer Research Personalized Medicine Drug Development Cancer Diagnostic Cancer Monitoring
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Opportunities – focused growth
CTCs ctDNA
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Cell affinity Filtration Active forces Inertial microfluidics
Marker independent Most cancers No pre-processing
Depends
High-purity Rapid processing
Depends
Large input volume Live cells Flexible collection Other body fluids Companies
J&J CellSearch, Biocept, Cynvenio Rarecell, Creatv Microtech Angle, Apocell Clearbridge, J&J/MGH
VTX-1 is potentially best in class technology…
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Product overview
Name Vortex VTX-1 Liquid Biopsy System Key Dates Soft Research Market Launch, April 2016 Global Commercial Launch, Q1 2017 Instrument price ASP ~ $120,000 (TBC – pricing study) Cartridge price Target GP % ASP ~ $200 (TBC – pricing study) 80+% Key Partnerships Accel to manufacture first 5 units Gener8 selected as contract manufacturer for VTX-1 Symbient/Z-Microsystems for cartridge Sales Strategy Direct to user (US), academic and industry Internationally (TBD)
Cartridge bottom Gasket material Cartridge top with deep pocket
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Commercial Milestones
2016 2017
Q1 Q2 Q3 Q4 Q1 Q2-4
Beta placements AACR soft launch (Research market) KOL placements Full commercial launch VTX-1 contract manufacturing Cartridge contract manufacturing Gener8 Z Microsystems
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Chronic condition management company that aims to reduce hospitalization costs and improve patient quality of life New CEO hired – Steve Curd proven digital health leader $2B initial market opportunity – exponential growth* Patented systems developed from over 12 years of clinical research at UCLA Commercialisation underway – 2 new customers
*Investec analyst note
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CEO
Mark Heinemeyer
CCO
Foad Dabiri, Ph.D
CTO
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75% of the $3.0 trillion fighting chronic
conditions
50% of patients treated for heart failure
are re-hospitalized within 6 months These readmissions cost the U.S. $17 billion/year
Even worse are the human costs. Patients suffering from chronic conditions
experience disabling and long-term symptoms. In addition, 7 out of every
10 deaths are a result of these costly and often preventable diseases
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WANDA aims to reduce this trillion $ burden by preventing hospital admissions and reducing readmissions through a bifurcated consumer and clinical strategy
Predict Clinicians Intervene based on actionable insights Reduce readmission s Inform & Guide Reduce admissions Engage Collect data
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Science and research driven
study
True predictive analytics and machine learning Contextual data and real-time vitals Mobile application
Patient engagement/adherence driven by the worlds largest, most validated personality database Revenue generating
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Analytics RMS Engagement
MD Revolution Accolade Tactico MDLive Sotera VitalConnect HealthCatalyst MedeAnalytics Cloud-MedX SyTrue
Sentrian Viterion
VivifyHealth ZypherLIFE
Omada
Enables ubiquitous care Engage, monitor and prioritize patients with chronic conditions, to improve efficiency & workflow Reduce hospitalizations and cost Delegate more care to the patient Provide clinicians with actionable insight Patient Engagement – Mobile App
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Home Health system Large hospital groups Payers Skilled nursing facilities
Target customers:
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HR HRS
On One call h hi-tech nur nursing & rehab
and COPD
discharge process for patients with chronic conditions
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Targeting customers earlier in the value curve to have more impact Access pay-for-performance market through growth into population health
Stage A (early onset) Stage B Stage C
Currently engage patients after they have experienced a hospitalization
D2C
CHF Population Max impact
Stage D (late stage)
Economic impact
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2016 Goals Drivers
Participants registered 4,000
Revenue $800K
Commercial agreements 4
Wanda Health Management Releases 4
Predictive Modules 3
Oncoverse Releases 3
Android & Apple iOS Mobile Releases 4
NetScientific.net