Bioventix Presentation: October 2017 Bioventix & antibodies for - PowerPoint PPT Presentation

1 Bioventix Presentation: October 2017  Bioventix & antibodies for blood testing  Bioventix portfolio of antibodies and their advantages  2016/17 results and analysis  Business continuity  Shareholders & the Board  Conclusions & outlook

2  Farnham location  12 staff in a Bioventix- owned property

3 Automated Blood Testing  Bioventix creates and manufactures sheep monoclonal antibodies (SMAs). Customers incorporate these antibodies in reagent packs for use on automated blood-testing machines antigen antibody  Bioventix sells liquid “physical” SMAs and derives royalties from their downstream use

4 Creating Antibodies Myeloma fusion partner  Immortal  Secretes nothing of use White blood cell (B cell)  mortal  Secretes a single antibody Polyethylene glycol (PEG)  Bioventix’s business is based on the ability of sheep to make better antibodies than mice  Better antibodies can facilitate better tests

5 Why SMAs? (testosterone)  In 2003, it became clear that testosterone testing for women was inadequate  Roche published their prototype assay in 2008 and launched this assay in 2009  It is the Bioventix antibody that made this possible

6 Why SMAs? (troponin)  Troponin is a component of heart muscle that leaks out after a heart attack  A new improved Siemens assay for troponin  Magnetic  Fluorescent was released in ex-US markets in May 2017 particle label

7 Thyroid  Clinician education and familiarisation and the need to change hospital protocols is likely to mean sales from the new Siemens assay gear up during 2018 Heart failure Fertility

8 2016/17: Headlines  Turnover: £7.2M (2015/16: £5.5M) +31%  Profit before tax: £5.8M (2015/16: £4.2M) +37%  Profit after tax £4.9M (2015/16: £3.5M) +41%  Cash at 30 June: £6.2M (2015/16: £5.4M) +£0.8M  Second interim dividend: 31p/share (Oct 2016: 26p) +20%  Special dividend: 40p/share  Dividend policy continues to embrace continuity

9  Royalties have increased across many antibodies  Physical antibody sales boosted by drug-testing SMAs

10 Key Financials (Oct 2017) £ (‘000) Year to Year to Year to Year to 30.6.14 30.6.15 30.6.16 30.6.17 Sales 3,535 4,333 5,517 7,245 P/(L) before tax 2,231 3,106 4,219 5,771 P/(L) after tax 1,815 2,557 3,494 4,922 Year-end cash 3,351 4,130 5,380 6,166 Dividend distribution 1,200 1,630 3,200 4,600 Total dividend per share (p) 24 32.6 42.5 51 Split between Spring/Autumn 9.6/14.4 11/21.6 16.5/26 20/31 Special dividend 20 40 Q3 share price (p) 600 11.00 11.00 22.00 Dividend yield (total/Q3; %) 4.0 3.0 4.0 2.3 [including special] 5.7 4.1

11 Pipeline Development high Secretoneurin (CardiNor) Troponin (Siemens) [2017/18] ← Increasing potential value Amyloid (Pre-Diagnostics) medium virus (contract) Thyroid (contract) Low Thyroxine/T4 Andro [2018/19] Vitamin (contract) Cancer (contract) [2019/20] Low Medium high Increasing probability of success →  New research projects actively being sought

12 Business Dynamics +1 year Prototype test 2-4 years Old test = 3-5 years total  Bioventix takes about 1 year to make antibodies  Customers take 2-4 years to: formulate a prototype test; conduct field trials; submit data to regulatory authorities; obtain marketing approval  This is an impediment to revenue growth – but delivers longer term revenue continuity

13 Selected Shareholder Base (Sept 2017) Institution Shares % (1000s) Miton Group 614 11.9 Peter Harrison 508 9.9 Livingbridge 384 7.5 Sanford DeLand 375 7.3 Canaccord (Hargreave Hale) 329 6.4 Wasatch Advisors, Inc 151 3.0 Total shares = 5,138,674  Shares admitted to AIM 29 April 2014

14 Bioventix Directors  Peter Harrison, CEO  Ian Nicholson, Chairman  >30 years experience of  >30 years experience of antibody technology at commercial development Celltech, KS Biomedix & within biotechnology Bioventix including Amersham, Celltech, Chroma, Clinigen & Consort Medical  Nick McCooke, Non-  Treena Turner, Finance executive Director Director  >30 years experience of  Partner at Wise & Co biotech industry (including accountants in Farnham. diagnostics R&D) at >10 years experience of Celltech, Solexa & Pronota Bioventix and accounts preparation

15 Conclusions and Outlook  2016/17: excellent results for the year as additional growth comes from our vitamin D antibody and other antibodies  2017/18: high sensitivity troponin project expected to gear up during 2018 and help balance revenues lost through termination of NT-proBNP revenues of ~£1,000k  2018-2020: growth linked to success of Siemens & their high sensitivity troponin project  2020-2030: growth linked to new products emerging from the company’s R&D pipeline and collaborative work with new biomarkers