Bionics Future is becoming Reality January 2020 ATONR PARTNERS SA - - PowerPoint PPT Presentation

Bionics – Future is becoming Reality

January 2020

ATONRÂ PARTNERS SA 7, rue de la Croix d’Or - 1204 GENEVA – SWITZERLAND - Tel: + 41 22 906 16 16 www.atonra.ch

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Bionics Natixis Certificate details Issuing bank: Natixis, Calculation agent: Natixis SA ISIN: XS1317063912 Currency: USD Fees: 1.65% management fee

Bionics Certificate

➢ We are living longer but not necessarily better. Bionics is taking on human body disfunctions and disabilities and helping improve the wellness and lifespan of the world population. ➢ Bionics provides better solutions to patients and hospitals while reducing healthcare spending. ➢ Bionics is a defensive sector. Having a disease is not tied to any economic cycle.

Investment Case

Bionics is the merger between Biology and Electronics…

Bionics JPMorgan Certificate details Issuing bank: JPMorgan Chase Bank, Calculation agent: JPMorgan Securities plc ISIN: XS1668108415 Currency: USD Fees: 1.50% management fee

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Key Growth Drivers (I): An Aging World Population

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Source: UN World Population Prospects

➢ The increase of certain diseases (cancer, heart diseases, diabetes, and chronic diseases) is fuelled by rapid urbanization, sedentary lifestyles, changing diets and an increasing elderly population. ➢ According to the UN, population aged 60 years and over will grow from 962M in 2017 to 2.1Bn in 2050, while the population >80 years old will grow from 137M to 425M over the same timeframe. ➢ Leading causes of diseases are all age-related diseases, meaning age is a significant risk factor.

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Key Growth Drivers (II): The Organ Shortage Crisis

➢ More than 120K people in the US are waiting for lifesaving organ transplants ➢ As a result, 20 people die every day waiting for an organ transplant ➢ Even if transplanted, there is a high risk of rejection; ✓ respectively 25% and 40% of kidney and heart recipients experience some type of acute rejection within the first year after transplant. ➢ The demand for tissue and organs is pushing science to new frontiers of medicine: ✓ Regenerative medicine ✓ Artificial organs ✓ Wearable devices ✓ Healthcare 3D printing

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Organ Candidates in the waiting list (2019)

Kidney 94 855 Liver 13 426 Pancreas 858 Kidney / Pancreas 1 623 Heart 3 765 Lung 1 365 Heart / Lung 45 Intestine 241

Source: waiting list length increases with time; optn.transplant.hrsa.gov

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Key Growth Drivers (III): Healthcare Cost Pressure

➢ The global healthcare spending is expected to increase at an annual rate of 5.4% over 2018-2022, a considerable rise from 2.9% in 2013-2017. ➢ U.S. health care spending reached $3.5 trillion in 2017 and hospitals represents a significant cost driver (about 30% of the total U.S. health care spending). Bionic devices allow hospitals to save costs. ➢ A bionic device can allow people to keep working or return to work more quickly and contribute to society and the economy.

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Wearables are predicted to decrease hospital costs by 16 percent in the next five years, and remote monitoring technology could cut our health care costs by some $200 billion over 25 years.

CDW Healthcare

‘’On average, a telehealth visit costs about $79, compared with about $146 for an office visit.’’

The journal Health Affairs

‘’Robotic surgery resulted in immediate conservative savings estimate of $608,546 during a 1-year period at an academic center performing 557 elective thoracolumbar instrumentation cases.’’

The Journal Neurospine

‘’If 15 to 20 percent of current outpatient consultations and home health visits were to occur electronically, health care spending could potentially be cut by $25 billion to $40 billion.’’

McKinsey

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Investment Universe

Digital Health Artificial organs Medical robots 3D printing Synthetic Biology Genomics Regenerative Medicine Bionics Certificate

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CAGR 2018-2024

Medical Robots ($18B) Digital Health ($509B) Healthcare 3D Printing ($5B) Synthetic Biology ($90B) Genomics ($41B)

38% 21% 21% 14% 28%

MedTech ($613B)

5%

AtonRâ Bionics

Artificial Organs ($21B) Regenerative Medicine ($49B)

25% 9%

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Source: Industry ARC, Grandview Research, Market Watch, Zion Market Research, Global Market Insights, AtonRâ Partners

A $733B Market By 2024 Growing At A CAGR Of 27%

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Innovation Is At The Core Of Bionics

➢ In 2017, 13,090 MedTech patents were filed globally, a number higher than any other category of products, representing a 6.2% increase from 2016. ➢ Technological advances in fields such as robotics, optoelectronics and, more in general, semiconductors will boost the growth of existing Bionics’ sectors and will induce the birth of new ones. ✓ Improvements in imaging sensors will provide new tools to help endoscopic and diagnostic market ✓ Improvements in power management and battery life allow medical wearable devices to last longer

Fields of technology Patent Applications in 2017 Medical technology 13,090 Digital communication 11,694 Computer technologies 11,174 Pharmaceuticals 6,330 Biotechnology 6,278 All fields 16,5590

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European Patent Applications by Field

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Biology is becoming programmable…we are now able to re-write the code that powers life.

Synthetic Biology: Making the Impossible Possible Digital Health: The Era of Patient Empowerment

The human body is becoming the biggest data platform… and Bionics companies are capturing this value.

Genomics: Towards Precision Medicine Healthcare 3D Printing: The solution to the organ shortage crisis?

Today texts and images are printed on a paper by controlling and placing ink or toner on the surface of the paper. In a similar way, 3D printers print… medical devices, drugs and even living organs! Each patient is different and unique in front of a disease → so must be the treatments.

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Bionics’ Diverse And Innovative Sectors

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With over 16,500 hospitals worldwide medical robots can help reduce costs, while also improving outcomes for patients and operations’ effectiveness.

Medical Robots: New Means for Better Medicine Regenerative Medicine: A bit of Me

Some animals have impressive regenerative capabilities. The Axololot is able to regrow limb, tail, eye, jaw, and heart. What about humans?

Artificial Organs: The Bionic Man is now a Reality

Artificial organs (limbs, ears, eyes, heart, pancreas) are already being used to improve people’s quality of life and some others are under way…

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Bionics’ Diverse And Innovative Sectors

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Major Catalysts (I): Health Coverage Is Gradually Expanding

➢ Encouragingly, coverage by Medicare in the US seems to be heading in the right direction as there is evidence

• n the benefit of the devices and the declining cost for the healthcare sector.

➢ As more evidence about social welfare and reduction in healthcare spending is gathered, coverage will expand

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✓ CMS announced this year to speed up Medicare coverage and new technology add-on payments for breakthrough devices granted marketing authorization by FDA. ✓ The rising number of insured everywhere and the expansion of healthcare coverage in developing markets (expansion of China’s healthcare coverage system and the rollout of a new health insurance program in India). ✓ Declining costs of device is a major catalysts for expanded health coverage. Technological progress and new manufacturing techniques have the potential to drastically reduce costs.

Prosthetics can cost up to $100,000. The UK-company Open Bionics is now selling its 3D-printed Hero Arm prosthetic for $3,000.

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Major Catalysts (II): FDA To Speed Up The Time Review

➢ A series of recent initiatives by the FDA are going to accelerate the time to market of new technologies, sparking industry innovation.

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Modernizing the regulatory pathway Pre-Cert Pilot Program Expedited access to life-threatening conditions De Novo Pathway for class II devices Breakthrough Designation

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Major Catalysts (III): Tech Companies Investing Heavily Into This Field

➢ A direct link to the consumer market of medical devices that accelerates innovation

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✓ Verily Life Sciences (independent subsidiary

• f Alphabet)

✓ Cloud storage and analytics for precision medicine ✓ Electrocardiogram (EKG) feature on the Apple Watch ✓ Access to electronic medical records on the iPhone ✓ Uber Health → providing non-emergency medical transportation ✓ Online pharmacy ✓ Ali Health (subsidiary) ✓ Distribution platform for medical supplies ✓ AI-assistant Alexa

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« Any sufficiently advanced technology is indistinguishable from magic.»

Thanks to bionics, babies born deaf can hear, people who have lost their sight can see, those living with paralysis can walk, upper-limb amputees can type on a keyboard, and lower-limb amputees can dance again Bionics Certificate

Bionic Devices Make Occurrences Once Considered Miracles Happen Every Day

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