NorDiag ASA DnB NOR Markets SMB Seminar rd March 2010 CEO Mårten Wigstøl. Automated solutions for diagnostics & lifescience

Transcription

1 NorDiag ASA DnB NOR Markets SMB Seminar rd March 2010 CEO Mårten Wigstøl Automated solutions for diagnostics & lifescience 1

2 Disclaimer This presentation includes forward-looking statements regarding NorDiag ASA, including projections and expectations, which involve risk and uncertainty. Such statements are included without any guarantee as to their future realization. Although NorDiag believes that the expectations regarding the Company reflected in such forward-looking statements are based on reasonable assumptions, no assurance can be given that such projections will be fulfilled. Any such forward-looking statement must be considered along with knowledge that actual events or results may vary materially from such predictions due to, among other things, political, economic, financial or legal changes in the markets in which NorDiag does business, and competitive developments or risks inherent to the Company s business plans. Many of these factors are beyond NorDiag s ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on any forwardlooking statements. The Company does not intend, and does not assume any obligation, to update any such forward-looking statements as of any date subsequent to the date hereof. 2

3 Agenda 1. Introduction 2. Financial overview 3. Business overview 4. Outlook 5. Appendix 3

4 Introduction Company history & structure 2002: NorDiag ASA established December 2005: IPO March 2007: Acquisition of Genpoint Genpoint established in 1998 Acquired Swedish MBS (now NorDiag AB) in November to date: Integration of businesses within NorDiag ASA Established NorDiag Inc in august 2007 Revised strategy: focus on automated sample preparation based on difficult samples Bullet launched in 2008 Arrow launched in 2009 NorDiag ASA 100% 100% 50% Olerup NorDiag AB NorDiag Inc International AB* (Norway) (US) (Sweden/Vienna) *Joint venture with LinkMed AB (25%) and SSP Primers AB (25%) July 2009: Joint Venture Olerup International AB established 4

5 Introduction The business opportunity Difficult and challenging samples contain vast amounts of clinical information not accessible or analyzable due to lack of appropriate sample preparation solutions High performance sample preparation solutions for difficult and challenging samples will expand the scope of genetic based diagnostic tests Difficult & challenging clinical samples Urine Sputum Faeces/Stool Blood* * Large volume, bacterial & virus NorDiag s core competence Isolating DNA from difficult and challenging samples making the samples ready for analysis 5

6 Introduction Key Message Private Placement and repair issue successfully completed - Secures NorDiag s operations until expected quarterly break-even in 2011 Instrument base continue to grow according to plan - Accumulated number of Bullet instruments sold/leased per 2009: 31 - Accumulated number of Arrow instruments sold per 2009: 25 Reagent sales continue to increase driven by strong and flexible application offering Revenues in 2009 of MNOK 62,1 versus MNOK 14,2 in 2008 OEM agreement signed with Hain Diagnostics for the Arrow instrument and reagents Cooperation agreement with Molzym automated pathogen detection system 6

7 Agenda 1. Introduction 2. Financial overview 3. Business overview 4. Outlook 5. Appendix 7

8 Financial overview Financial development Infectious Diseases segment NOK million Revenues and EBITDA trending upwards Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Operating revenues EBITDA Excluded option costs Including former Cancer segment Opex and cash burn trending downwards NOK million 20 Operating expenses (ex COGS) NOK million Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q Cash burn (investments & operations) Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q

9 Financial overview: Facts and figures Infectious Diseases Operating revenues Product mix (% of operating revenues) Figures in NOK million Yearly growth of 43% EBITDA * 31 Bullet instruments sold/leased per December Arrow instrument sold per December 2009 * Including former Cancer segment 9

10 Financial overview: Facts and figures HLA Typing (JV Olerup International) Operating revenues Product mix (% of operating revenues) Figures in NOK million Currency effect on Q4 operating revenue First Arrow sold in Q KSF: Successful introduction of Arrow and XM-One EBITDA * Q Q * Including gain from bargain purchase of NOK 2.3 million in Q

11 Agenda 1. Introduction 2. Financial overview 3. Business overview 4. Outlook 5. Appendix 11

12 Business overview Global distribution network The Bullet is most suited in Nordic countries, UK, Benelux,Germany and US The Bullet is most suited for the infectious disease market The Arrow fits all countries The Arrow fits many markets beyond the infectious disease market 12

13 Business overview: Infectious diseases Instrument base drives kits sales No. of NOK mill. Similar effect is expected to be experienced for Arrow going forward 13

14 Business overview: Infectious diseases Business model summary Input to instruments Patient Samples Urine Swabs Stool Sputum Blood Reagent kit Sell or lease automated sample preparation solutions to clinical laboratories and OEM partners (incl. reagent rentals) The product offering includes: Instruments that carries out automated sample preparation of multiple samples simultaneously Tailor-made software that controls the process in the instrument Reagent kits and consumables (plastic ware and pipettes) NorDiag s most important success criterion is to place as many instruments as possible in order to drive sales of reagent kits and consumables Output from instruments Applied towards Chlamydia MRSA/VRE Swine flu Influenza A & B Noro Virus Respiratory viruses C-diff Stomach Ulcers Tuberculosis 14

15 Business overview: Infectious diseases Bullet Kits and Applications Instrument Bullet Viral NA Kit Bullet Blood DNA Kit Bullet BUGS n BEADS TM Kit New Bullet Kit Applications Influenza HSV Corona Virus VZV EBV Adeno virus CMV Norovirus Human Par Genetic markers STI MRSA Norovirus VRE Tuberculosis Stool Echovirus 15

16 Business overview: Infectious diseases Arrow Kits and Applications Instrument Arrow Viral NA Kit Influenza Arrow Blood DNA Kit HLA Arrow BUGS n BEADS TM Kit MRSA Arrow Stool DNA Kit H-Pylori New Arrow Kit(s) Life science Applications HSV VZV Entero virus Candida Norovirus Genetic markers STI Norovirus VRE Tuberculosis Bordetella C-Diff Human DNA Pertussis 16

17 Business overview: Infectious diseases Strong competitive edge and differentiation for Arrow Extractor Company Closed system List Price Price per isolation Extract Number Run Time Scalable sample volume Scalable DNA & Cell separation Arrow NorDiag Yes $ 15,000 $ 6, min. Yes Yes EZ1 Qiagen No $ 30,000 $ 6, min. No No MagNa Pure Compact Roche No $ 35,000 $ 6, min. No No Maxwell 16 Promega No $ 24,500 $ 5, min. No No SPRI-TE Becton Dickenson No $ 31,500 $ 7, min. No No Source: Company management 17

18 Business overview: Infectious diseases Scalable business model Geographic expansion Nordic Europe US Far East Market expansion Infectious diseases HLA Life Sciences Other Application expansion DNA Cells Proteins System expansion Multi system Integrated system 18

19 Business overview: Infectious diseases Arrow market expansion NorDiag is entering the life USD 18 billion Life Science market with the Arrow technology platform Diagnostics Established Life Science In progress Will expand product portfolio with new applications (cell separation, RNA, Tissue. Parafin Embedded tissue) For future consideration Veterinary Environmental Forensic Launch of Life Science applications in Q3-10 Market expansion can take place through a strategic partner or through a strong distribution partner 19

20 Business overview: HLA Typing (JV Olerup International AB) Status and future So far, all revenues comes from Olerup SSP. The market for Olerup SSP products is driven by number of organs available for transplantations and a moderate growth is expected. XM-One products challenge the existing antibody testing products in the HLA Typing market. The products are used to test for antibodies both before and after transplantation in cases of transplantation success, and growth is expected over time. The Arrow will be attractive for laboratories in the HLA market, since both cell and DNA isolations are used in routine testing in this market. Going forward, both XM-One products and Arrow instruments are expected to become a larger share of revenues Access to $ 260 million market 20

21 Business overview: HLA Typing (JV Olerup International AB) Strategic rational' NorDiag s goals for the JV are: 3 product lines Rapid access for the Arrow in the HLA market Accelerate the way to breakeven Topline growth Cost savings Complementary products 21

22 Business overview: Infectious diseases OEM Agreement Hain Diagnostics OEM agreement for the Arrow instrument with Hain Diagnostics signed February 15 Hain will buy both instruments and reagent kits OEM Hain has tests for Tuberculosis, H. Pylori and C-diff The agreement is capable of covering approximately 20% of Arrow goals in 2010 and First deliveries expected in Q

23 Business overview: Infectious diseases Collaboration Agreement Molzym New collaboration agreement with Molzym signed February 17 First to market with automated system for pathogen identification consisting of NorDiag s Arrow instrument and Molzym reagents Sepsis (blood poisoning) is the most significant application but the market for individual pathogen detection is also large NorDiag has distribution rights in US, Canada and Nordic countries, while Molzym distributors will sell the system in rest of the world Revenues and profit on revenues from strategic deals will be agreed upon a fixed split 23

24 Agenda 1. Introduction 2. Financial overview 3. Business overview 4. Outlook 5. Appendix 24

25 Outlook Positive development towards profitable operations Attractively positioned with the most flexible high performance solutions in the highest growing segment of the sample preparation market Significant potential add-on business through OEM and other strategic partnerships OEM agreement for the Arrow instrument Hain Diagnostics New cooperation agreement with Molzym Distribution in US has a high priority Positioning of the Arrow in the life science market Restructuring completed - streamlined business model with high leveragability Strong revenue growth - in line with expectations for 2009 Quarterly break-even (at EBITDA level) estimated to be reached in

26 Agenda 1. Introduction 2. Financial overview 3. Business overview 4. Outlook 5. Appendix 26

27 Appendix Key Financials (unaudited) (unaudited) Full Year NOK 1,000 Q Q Q Q Q Operating revenues Gross margin 30 % 49 % 29 % 58 % 47 % 32 % 57 % Other revenues/governmental grants EBITDA EBIT Net income Minority interest (net income) Total comprehensive income, net of tax EPS -0,58-0,13-0,56-0,51-0,28-1,44-0,92 Intangible assets Equipment and other fixed assets Current assets Total equity Equity ratio 77 % 85 % 72 % 87 % 89 % 77 % 85 % Non-current liabilities and provision for obligations Current liabilities Net cash from operating activities Net cash from investing activities Net cash from financing activities Net change in cash Cash at end of period

28 Appendix Largest shareholders (as of Jan ) Name Number of shares % share 1 Sarsia Life Science Fund AS ,80 % 2 MP Pensjon ,76 % 3 Sparebanken Vest Aksjer ,71 % 4 Holberg Norden ,39 % 5 SSP Primers AB ,89 % 6 Storebrand Livsforsikring P ,81 % 7 Holberg Norge ,49 % 8 Alden AS ,42 % 9 VPF Nordea SMB ,27 % 10 DnB NOR SMB VPF ,17 % 11 L. Meltzers Høyskolefond ,74 % 12 Storebrand Vekst ,71 % 13 KLP LK Aksjer ,67 % 14 Skagenkaien Eiendom ,61 % 14 Parra AS ,61 % 16 KLP Aksje Norge ,57 % 17 Terra Vekst VPF ,45 % 18 Spar Investor Norge ,42 % 19 Colon AS ,20 % 20 Storebrand Norge ,11 % 20 largest shareholders ,79 % Other shareholders ,21 % Total per 31/01/ ,00 % 28