NASDAQ, TASE: MZOR. May, 2018

Transcription

1 1 NASDAQ, TASE: MZOR May, 2018

2 FORWARD LOOKING STATEMENT This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Forward-looking statements are not historical facts, and are based upon management s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management s expectations, beliefs and projections will be achieved and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements, including risks detailed in Mazor Robotics Ltd. s ( Mazor Robotics or the Company ) annual reports on Form 20-F filed with the U.S. Securities and Exchange Commission. The following solutions are not yet cleared for use: Navigation, Guidewireless Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. 2

3 Healing through Innovation Strategic Vision Mazor as a growing patient-focused, global innovative leader, delivering advanced image based robotic guidance products in and out of spine. Growth through continued market leadership and focus on partnership with Medtronic Evidence Based Medicine with predictability and efficiency for the healthcare community Strategic and Economic Value through innovative products and procedural solutions for our partners Innovation for safer and predictable surgery with clinically-evidenced outcomes for patients 3

4 Current Snapshot From Vision to Experienced Market Leader Strategic partnership with Medtronic (Mazor X in spine) Mazor Core technology with three generations of commercial products 60+ peer-reviewed articles and strong evidence of improved patient outcomes 33,000+ Patients, 100s of surgeons, wide spectrum of procedures Surgical technique used for precise placement of 230,000 + implants 4

5 Mazor Robotic Guidance Systems Predictability, Precision and Efficiency through Innovation 1. Planning 2. Guided Execution 3. Intra Op Verification 5

6 Mazor Core Surgical Planning Suite Anatomy Recognition Engine Patient Connection Platform Cross-modality image registration 3D analytics and virtual tools developed to determine procedure goals and surgical plan. The suite of tools allow creation of a surgical blueprint that separates the surgeon s analytical planning process from the actual surgery. During surgery, the surgeon executes the plan as an efficient and predictable procedure with no anatomical surprises. Implants are pre-selected and prepped, the team knows what to expect. The advanced anatomy recognition engine reads images and recognizes anatomical features based on advanced and proprietry algorithms. The engine is fundamental for planning and serves as the underlying technology for features such as vertebral segmentation, image registration and alignment calculations. Set of biocompatible devices that rigidly affix the robotic system/arm to the patient s skeletal anatomy during surgery, ensuring precision through a stable, solid connection. This unique feature maintains patientmachine unity during the operation and is a major contributor to accuracy. Sophisticated registration tool with the ability to analyze and match images from different modalities and body positions, e.g. pre-op CT with intra-op fluoroscopy. Each vertebra is registered independently of the others and irrespective of modality, date of the image, or patient position. 6

7 Commercial Success Launch and Adoption of Mazor X 2017 Execution (0-50 Systems) Worldwide Installed Base * Renaissance MazorX Intuitive Surgical Launch 1999 Data estimated based on published data Renaissance launch 2011, Mazor X Launch

8 Medtronic and Mazor Activity Spectrum Mazor X Global Commercial Partner* Commercial Activity 100 s strong Medtronic sales team driving: Growing Mazor X Installed Base Supporting Procedure Volume * For Spinal procedures only Market Development Mazor X & Mazor X w/nav Medtronic Investment in: Market Development Medical Education Bioskill Labs Society Meetings Promotion Public Relations Sales Training Launch Plan Joint Development Mazor X Platform w/nav 8

9 Evidence-based Medicine From Accuracy to Outcomes Consistent Accuracy with Improved Outcomes Proven Reduction in Complications and Revisions (1) 18.1% 5.2% 5.8% 0.9% 1 2 Dr. Thomas Sweeney,, Orthopaedic Surgeon, FL Proven Reduction in Exposure to Radiation (2) I have been doing minimally-invasive surgery since Mazor Robotics Renaissance 's revolutionary approach to spinal surgery has transformed my practice so I no longer need to do any open thoracic and lumbar surgery.. 1. Based on published data: Cannestra, e-poster NASS 2014; Kantelhardt, ESJ 2011; Ringel, ESJ 2012, Roser, Freehand represents the average fluoro radiation exposure during a freehand operation as a baseline for comparison to Renaissance only. 9

10 Evidence-Based Medicine MIS-ReFRESH Prospective Study (Presented at NASS 2017 Emerging Technologies) Significantly fewer complications in robotic arm Compared to fluoro-guided, robotic-guided surgeries were at 5.3 times LOWER risk for a complication Significantly fewer revisions in robotic arm Compared to fluoro-guided, robotic-guided surgeries were at 7.1 times LOWER risk for a revision 78% less fluoro time/screw in robotic arm Caveats: Interim report only 92 control patients Only 2 surgeons in control arm 6-month average follow-up High event rate in fluoro-guided arm 10

11 How could Mazor Core impact health economics? If a surgeon changes 100 Fluoro-guided MIS cases to Mazor Core MIS per year: Event type Baseline number of events* of events* Relative Risk* Relative Risk* Anticipated number of events* Anticipated number of events* Reduction in number of events* Reduction in number of events* Cost of event** Cost of event** Reduced costs costs Complications $9K $198K $200K Revisions $28K $84K Total speculated savings /100 surgeries/year $282K * Projected based on MIS ReFRESH data **Based on Medicare costs (From Culler 2013 & Adogwa 2016) 11

12 Updated Business Model Three Sources Capital Sales Per Case Revenue Per System Revenue Mazor X Distributor Sales Disposable Kits Annual Service revenues Renaissance: Direct Sales Synergy fee revenue:* (*) under certain conditions 12

13 Renaissance New Business Model Technology Mazor Core + Brain 10% of accounts include Renaissance Brain Business Model: Geographic areas where Mazor X regulatory clearance is not imminent Target Market: Medicare accredited ASCs in the United States International Global Sales Organization Active distributors in China, Taiwan, Australia, Thailand, Vietnam, Germany Pipeline Simplified workflow to fit single level procedure 13

14 Revenue Breakdown Year Ended December, 2017 $70,000 $60,000 $50,000 Disposables, Service and Others Systems $64,947 43% $40,000 $36,379 $30,000 $20,000 $12,175 $19,983 $21,208 32% 43% $26,096 49% 46% 57% $10,000 $0 29% $3,973 $5,904 26% 30% 74% 70% 71% 68% 57% 51% 54% Gross margin 76% 68% 76% 79% 79% 78% 72% 64% 14

15 Income Statement Income Statement Year Ended December 31, 3 Months Ended March 31, ($ in thousands) Revenue $64,947 $36,379 $15,507 $11,719 Cost of sales $23,684 $10,330 $6,465 $4,149 Gross Profit $41,263 $26,049 $9,042 $7,570 % margin 64% 72% 58% 65% Operating Expenses Research and development, net $8,192 $5,736 $2,387 $1,792 Selling and marketing, net $39,499 $33,637 $6,081 $9,893 General and administrative $7,375 $5,697 $2,022 $1,571 Total operating expenses $55,066 $45,070 $10,490 $13,256 % of revenue 85% 124% 68% 113% Loss from operations ($13,803) ($19,021) ($1,448) ($5,686) Net loss ($12,419) ($18,668) ($1,277) ($5,232) 15

16 Balance Sheet As of March 31, As of December 31, ($ in thousands) Assets Consolidated Statements of Financial Position Cash and Cash equivalent $47,003 $46,376 Short-term investments $62,484 $56,708 Trade receivables $1,608 $5,460 Other accounts receivable $2,445 $2,054 Inventory $7,954 $7,864 Total current assets $121,494 $118,462 Total non-current assets $12,399 $12,534 Total Assets $133,893 $130,996 Current liabilities $15,277 $16,819 Total non-current liabilities $472 $414 Equity $118,144 $113,763 Total liabilities and Equity $133,893 $130,996 16

17 Mazor Robotics 2018 Strategic Partnership with Medtronic for Mazor X New Market Strategy for the Renaissance Leverage Robotics Spine and Out-of-Spine 17