ZOLL Medical Corporation The Global Leader in Resuscitation March - - PowerPoint PPT Presentation

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ZOLL Medical Corporation The Global Leader in Resuscitation March - - PowerPoint PPT Presentation

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ZOLL Medical Corporation The Global Leader in Resuscitation March 11, 2015 ZOLL Medical 1 Agenda Basic Mission History/Background Main Business Discussion Longer Term Plans Summary ZOLL Medical 2 Agenda Basic

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1

ZOLL Medical

ZOLL Medical Corporation

The Global Leader in Resuscitation

March 11, 2015

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2

ZOLL Medical

Agenda

  • Basic Mission
  • History/Background
  • Main Business Discussion
  • Longer Term Plans
  • Summary
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SLIDE 3

3

ZOLL Medical

Agenda

  • Basic Mission
  • History/Background
  • Main Business Discussion
  • Longer Term Plans
  • Summary
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4

ZOLL Medical

Delivering Life-saving Technology

ZOLL helps health care professionals, emergency responders, and non-medically trained rescuers save many thousands of lives each year with products that deliver superior clinical performance.

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ZOLL Medical (F)

ZOLL Revenue (March Year-End)

Ten Year CAGR

16% Achieved #1 share position in all four businesses

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6

ZOLL Medical

Basic Definitions

TREATMENT

Emergency defibrillation Catheterization procedure to reopen block vessel

TERMS

Sudden cardiac arrest (SCA) Acute myocardial infarction (AMI)

SEVERITY

Death if not immediately treated Injury or death over a number of hours

CAUSE

CARDIAC ARREST occurs when the heart malfunctions and stops beating unexpectedly due to fibrillation. Cardiac arrest is an “ELECTRICAL” problem. A heart attack is a “CIRCULATION” problem. A HEART ATTACK occurs when blood flow in an artery to the heart is blocked.

CARDIAC ARREST? HEART ATTACK?

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ZOLL Medical

Basic Definitions

WEIGHT 5-10 kg <2 kg .07 kg

Types of Defibrillators

WHEN USED Emergency During recovery period After long term risk is established DURATION OF USE During emergency 1-6 Months Many years CUSTOMERS Hospitals, ambulances, fire departments, the public Cardiologists Electrophysiologists EXTERNAL WEARABLE INTERNAL

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ZOLL Medical

Basic Definitions

Time to defibrillation is critical for cardiac arrest

Provides blood flow to maintain brain and heart until defibrillator arrives

Cardiopulmonary resuscitation (CPR) can change survival rates

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9

ZOLL Medical

The Problem

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ZOLL Medical

1% 7% 31% 42% 92%

Survival Rates Can Dramatically Improve

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11

ZOLL Medical

The Chain of Survival

*

* Advanced cardiac life support

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12

ZOLL Medical

Only ZOLL Addresses Every Link in the Chain

RescueNet ePCR*

* Electronic patient care reporting

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13

ZOLL Medical

Agenda

  • Basic Mission
  • History/Background
  • Main Business Discussion
  • Longer Term Plans
  • Summary
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14

ZOLL Medical

Paul M. Zoll, MD Father of Modern Electrophysiology

Paul M. Zoll, Physician Co-founder

  • Professor of

Medicine at Harvard Medical School

  • Lasker Award in

Medicine

  • American Heart

Association Lifetime Achievement Award

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ZOLL Medical

1950-1980 Clinical Foundation First external defibrillation, first implanted pacemaker, first cardiac rate monitor, first external pacer

ZOLL Medical Over the Years

1980’s Commercialization ZOLL founded in Massachusetts, NTP1000, PD1200, uniform operating system, multi-function electrodes 1990’s Investment Smallest full-featured defibrillator, LifeCor, ZOLL Data Systems, superior defibrillator waveform 2000’s Integration AEDs, AutoPulse, fluid resuscitation, temperature management, LifeVest 2010’s Expansion International build out, new clinical indications, rapid salesforce expansion, joined Asahi Kasei Group

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ZOLL Medical DIRECT OPERATIONS MANUFACTURING ZOLL DISTRIBUTION DEDICATED PERSONNEL SUB/REP OFFICE

Canada New Zealand Australia Singapore Jordan India Russia Japan S Korea Taiwan China Malaysia Italy Switzerland France UK Germany Austria Netherlands Panama Puerto Rico Finland Sweden Pakistan Spain Brazil Argentina Philippines Vietnam Indonesia Chelmsford San Jose Pittsburgh Broomfield

HEADQUARTERS

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17

ZOLL Medical

Agenda

  • Basic Mission
  • History/Background
  • Main Business Discussion
  • Longer Term Plans
  • Summary
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ZOLL Medical

Four Main Businesses

  • 1. Defibrillation/CPR – Worldwide

Hospital/ambulance/fire/public resuscitation from SCA

  • 2. Data – US/Germany

Software to run emergency services (ambulance/fire)

  • 3. LifeVest – US/Germany/Japan

Wearable defibrillator for patients at high risk of SCA

  • 4. Temperature Management – Worldwide

Cooling/warming of patients/ post SCA/fever

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ZOLL Medical

Defibrillation/CPR Business

ZOLL Progress

  • #1 in U.S. hospital
  • #1 in U.S. EMS
  • #2 in world public access defibrillation
  • Rapid traction outside United States

(23% YTD ’14 Growth)

  • Japan is key to attaining #1 position

Competitor Highlights

  • Philips restructuring and regulatory issues
  • Physio concentrating on automated CPR
  • Expect competition from China

Market

Others Physio Control Philips ZOLL

5YR CAGR FORECAST 8% 2014 World Market $1.7B

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20

ZOLL Medical

Data Business

ZOLL Progress

  • Transition to Software as a Service (SaaS)
  • International market is big opportunity

– ZOLL has German product

  • Community paramedicine/

distributed health

– ZOLL product launching now

Competitor Highlights

  • Most competitors are small,

single product

– Only ZOLL competes across all categories

ZOLL TriTech Other ImageTrend

5YR CAGR FORECAST 8% 2014 US Market $110M

Market

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21

ZOLL Medical

LifeVest Business

ZOLL Progress

  • Protection from high temporary risk

– >200,000 patients protected so far – US penetration <20% of patients

  • U.S. field sales force >400

– Platform for other products

  • Japan just started

– Reimbursement < price – >125 patients protected Competitor Highlights – ZOLL is not aware of any competing product in development – “Doing Nothing” is still our main competitor

U.S. Germany Rest of World Japan

5YR CAGR FORECAST 25% World Market Potential >$2B

Market

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ZOLL Medical

Temperature Management Business

ZOLL Progress

  • Targeted temperature management (TTM)

Trial has created a headwind for SCA

– “Doing Nothing” is an option

  • Recent InnerCool purchase makes

ZOLL only intravascular player

  • Gross margin is up to 58%

– Potential for high 60s

  • Clinical trials ongoing for AMI

– Potential for >$1B market Competitor Highlights

  • Bard is strong but facing same TTM issues

ZOLL Other Bard

5YR CAGR FORECAST >10% Current Indications Only World Market Potential >$300M

Market

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ZOLL Medical

Multiple Business Models Provide Strength

Business Structure Approximate Recurring Revenue Operating Margin Potential Defib/CPR Capital Equipment 15% Mid Teens Data License Plus Ongoing Maintenance 30% Low 20s LifeVest Rental w/ Services 50% Mid 20s Temperature Management Razor/Razor Blade 70% Mid to High Teens

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ZOLL Medical

Different Medical Systems

Defib/CPR Data LifeVest Temp United States Capital Capital Rental to Patient Covered by Insurance (45% Government) Operating Expenses Germany Same Same Same Small Reimbursement Japan Same N/A Rental to Hospital Reimbursement to Hospital (100% Government) Decision Pending

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ZOLL Medical

International Growth Investments

  • Japan

– 61 ZOLL employees, ~$10M 2014 forecast revenue – Defibrillators, Automated CPR, LifeVest approved – Post SCA indication for temperature management pending approval – >$100M revenue target in 5 years

  • International LifeVest expansion

– France and India next targets – China approval still pending

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26

ZOLL Medical

Agenda

  • Basic Mission
  • History/Background
  • Main Business Discussion
  • Longer Term Plans
  • Summary
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ZOLL Medical

ZOLL’s Longer Term Plan

  • Achieve revenue > $2B by 2020
  • ZOLL internal plans even more aggressive
  • Broaden focus beyond resuscitation to:

Acute Critical Care

  • M&A will be necessary
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ZOLL Medical

Acute Critical Care

  • Medical equipment/devices/tools/software/IT/services

which are necessary for:

a) therapy/treatment of patients facing acute critical conditions, or, b) diagnostics to predict such conditions, or, c) preventing such patients from escalation to acute conditions.

  • Products must contribute to an increase in cost

effectiveness.

Definition

AMI, Stroke, Trauma, Respiratory Arrest, Cardiogenic Shock…

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ZOLL Medical

M&A Strategy

Data

  • Links between each business
  • Links between areas of care

Early detection/ intervention to acute cardiac diseases

  • LifeVest
  • Mobile cardiac

telemetry

Resuscitation Focus

  • Defibrillation/

monitoring

  • CPR support
  • Airway

maintenance

Cooling Focus

  • IVTM
  • Surface/other

techs

  • Pre‐hospital

temperature management

5th /6th Division

  • Established business model
  • No/few short‐term synergies

with existing Divisions but expect mid/long term synergies

Acute Critical Care

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ZOLL Medical

Recent M&A Activity

Business What it Adds Philips InnerCool

  • Consolidates IVTM Patent Position
  • OEM Surface Product

IMPACT Instrumentation

  • Portable/Emergency/Military Ventilators
  • Platform to Combine with Defib/CPR

Advanced Circulatory Systems, Inc.

  • Intrathoracic Pressure Regulation

Technology

  • ResQPOD Adds to ZOLL’s

CPR Product Portfolio

  • ResQPOD Pump
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ZOLL Medical

ResQCPR System

ResQPOD ResQPUMP ResQCPR System - PMA P110024 Approved March 6, 2015

Single use, disposable enhances circulation Reusable device performs active compression decompression CPR. Optimizes CPR using a suction cup to pull up on the chest.

Survival Endpoints S-CPR

(Control)

ACD-CPR + ITD

(Intervention)

ACD-CPR + ITD Difference P value Survival to hospital discharge 10% 12% 20% ↑ 0.12 MRS ≤ 3* 6% 9% 53% ↑ 0.019 Survival to 1 year 6% 9% 50% ↑ 0.030

PI VOTAL STUDY: Rescue Trial (Aufderheide et al. Lancet 2011)

* Study primary endpoint

FDA I ndication for Use (I FU): The ResQCPR system is intended for use as a CPR adjunct to improve the likelihood of survival in adult patients with non-traumatic cardiac arrest.

+ =

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ZOLL Medical

Agenda

  • Basic Mission
  • History/Background
  • Main Business Discussion
  • Longer Term Plans
  • Summary
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ZOLL Medical

ZOLL as Part of Asahi Kasei

* Includes equivalent backlog

Twelve Months Prior to Asahi Kasei Acquisition Last Twelve Months

Revenue Revenue

67% Growth*

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ZOLL Medical

Asahi Kasei – ZOLL synergies

  • Asahi Kasei has allowed ZOLL to invest

to achieve faster growth

  • ZOLL’s planning horizon expanded to five years
  • Asahi Kasei is asking ZOLL to move beyond

resuscitation

  • Asahi Kasei technologies now being explored for

ZOLL products

  • Fit and motivation from ZOLL perspective has

been very good

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ZOLL Medical

ZOLL Summary

  • Both revenues and profits growing

aggressively

  • Much opportunity still available for

existing businesses

  • New businesses are being explored to

expand ZOLL’s domain