For personal use only Perth - Australian Securities · PDF fileFor personal use only Perth,...
Transcript of For personal use only Perth - Australian Securities · PDF fileFor personal use only Perth,...
Avita MedicalAvita MedicalAvita MedicalAvita MedicalAnnual General MeetingAnnual General Meeting
11 November 2008
Perth, Australia ,
For
per
sona
l use
onl
y
Corporate OverviewCorporate Overview
N M t• New Management• New Sales Team• New Sales Team• New Operation TeamNew Operation Team
For
per
sona
l use
onl
y
Corporate OverviewCorporate Overview
R l h d• Relaunched• Refocused• Refocused• RevitalizedRevitalized
For
per
sona
l use
onl
y
Corporate OverviewCorporate Overview• Global, multi-enterprise medical
device companyp y• Expanded entity created through
acquisition of Visiomed by C3acquisition of Visiomed by C3• Two product areas in large and
idl i k trapidly growing markets:• Regenerative medicineRegenerative medicine• Respiratory medicineF
or p
erso
nal u
se o
nly
Corporate SnapshotCorporate Snapshot
ASX Code: AVH
Number of shares on issue 93 474 millionNumber of shares on issue 93.474 millionPercentage (%) of AVH held by top 20 shareholders
25.88%
$Cash reserves $8.1m @ 30/9/08Cash backing per share 8.6cAverage weighted share price (Oct 08) 4.6cg g p ( )Average market capitalisation (Oct 08) $4.29 millionRevenues 1Q 08/09 $708,701Revenues 1Q 07/08* $13,185
* Prior to acquisition of Visiomed GroupFor
per
sona
l use
onl
y
Financial PerformanceFinancial PerformanceRevenues Gross Profit
EBITA
For
per
sona
l use
onl
y
Experienced BoardExperienced Board
DALTON GOODING ChairmanBBus, ACA, FCA• Partner Gooding Pervan Chartered
Accountants
IAN MACPHERSONDeputy ChairmanB.Comm, CA• Founder of accounting firm Ord Partners
Chartered AccountantsAccountants• Former partner at Ernst & Young• Board member of several listed companies
Chartered Accountants• Former partner at Arthur Anderson & Co
DR FIONA WOOD DR WILLIAM DOLPHINDR FIONA WOODNon-Executive Director(Founder)FRCS, FRACS• Director of Burns Service, WA
DR WILLIAM DOLPHINManaging DirectorPhD Biophysics• 25 years senior executive experience in
international med-tech industry• 2005 Australian of the Year• Order of Australia• Chairman McComb Research Foundation
• 1989, 1991 recipient of US National Institutes of Health Research Service Award
• 5 US and international patents
DR PAUL WATTDR PAUL WATTNon-Executive DirectorPhD BioChemistry• VP Drug Discovery, PhylogicaFor
per
sona
l use
onl
y
Senior ManagementSenior ManagementggWilliam F. Dolphin, Ph.D., CEO, 25 years international executive
experience; significant M&A experience; Appointed as CEO in July 2008.CEO in July 2008.
John Geisel, Senior VP Business Development 30 years experience in medical sales and general management; p g g ;joined Avita in July 2008.
Lorraine Glover, General Manager, Asia Pacific 17 years in the commercial biotechnology and medical devices industry; Joined Visiomed in 2002.
William Marshall, VP Operations 30 years industry experience; expertise in lean manufacturing, quality and regulatory systems; Joined Avita Medical in July 2008.
Matthieu LeClec Chavel VP Sales & Marketing 15 years in international medical sales and marketing; Joined C3 in December 2005December 2005
For
per
sona
l use
onl
y
Strategic PlanStrategic Plan
Clear, focused and consistent: Aim to be a leading global to be a ead g g obamulti-enterprise medical devices company
For
per
sona
l use
onl
y
Growth StrategyGrowth StrategyKey areas of strategic growth plan:
Increase sales in domestic and international marketsFocus sales efforts on key high demand, high potential markets with
regulatory clearance in placeImprovements to operations and manufacturingImprovements to operations and manufacturing
Application of “Continuous Improvement” modelObtain regulatory approvals for current products in key markets
US FDA approval for ReCellTight management of working capital
- Secure high operating margins as company grows.Secure high operating margins as company grows.- Continuous improvement to increase operational efficiencies
Enhancement of product portfolio and expand applications of i t ll t l tintellectual property- Acquire market leading products in early stages of commercialisation- Seek acquisitions, strategic partnerships, licensing relationships and other corporate activityactivity
For
per
sona
l use
onl
y
Revenue StreamsRevenue StreamsRevenue StreamsRevenue StreamsMarket focus– Limited number of key,
high value markets with Country / Region ReCell Respiratory
major growth potentialSales of current product
Australia
United Kingdom
Francelines– Direct sales force
Di t ib t
France
ItalyUSA
– DistributorsLicensing agreements with third party manufacturersmanufacturers– Royalty streams from third party sales– Joint marketing / sales partnershipsJoint marketing / sales partnershipsFor
per
sona
l use
onl
y
Our ProductsOur ProductsBreathBreath--AA--TechTechReCelReCell FunhalerFunhaler
Spacer designed for adolescents & adults
Autologous cell harvesting device
Paediatric Incentive Spacer
75% market share in AustraliaRetail pharmacies
Treatment of burns, wounds, skin defectsBurns, plastics and
Demonstrated to improve compliance in children p, p
cosmetic surgeons Retail pharmacies
For
per
sona
l use
onl
y
Respiratory Opportunity:Respiratory Opportunity:Market Trends Market Trends -- Drug Delivery and ComplianceDrug Delivery and Compliance
f• Lack of compliance with prescribed medication regime a key healthcare issue.
• Major drugs off patent; drive for• Major drugs off patent; drive for reformulations
• Inhaled medication: rapidly growing,Inhaled medication: rapidly growing, preferred delivery pathway for an increasing range of drugs
• Sales of drug delivery products predicted to increase by 100% over next 5 years 1.
• Drug delivery is expanding faster than the• Drug delivery is expanding faster than the total pharmaceutical market
1. Source: Informa Pharmaceuticals / Jain PharmaBiotech1. Source: Informa Pharmaceuticals / Jain PharmaBiotech
For
per
sona
l use
onl
y
Th ld id k t f i tTh ld id k t f i t
Respiratory: MarketsRespiratory: MarketsThe worldwide market for respiratory The worldwide market for respiratory
pharmaceuticals and drug delivery: US$22 Bpharmaceuticals and drug delivery: US$22 B
Paediatric AdultPopulation Incidence Population IncidencePopulation Incidence Population Incidence
Asthma 55,000,000 12 – 16% 85,000,000 8 – 10%
COPD 5,000,000 1 – 2% 100,000,000 10 -15%
• Lung disease 3rd leading cause of death in the US, responsible for 1 in 7 deathsAsthma is the most common chronic childhood disease• Asthma is the most common chronic childhood disease
For
per
sona
l use
onl
y
Why Spacers?Most respiratory medications are inhaled Recommended by all major medical organisations R d id ff t f di tiReduce side effects of medications Provide superior drug delivery● 45% more drug delivered to lung; 60% less to body45% more drug delivered to lung; 60% less to body
(mouth, stomach etc)
With spacer: Good delivery With spacer: Good delivery of medication; majority of medication; majority
deposited in lungdeposited in lung
Without spacer: Poor Without spacer: Poor delivery of medication; delivery of medication;
majority deposited in mouth majority deposited in mouth and stomachand stomach
Devadason et al ERJ 2003
and stomachand stomach
For
per
sona
l use
onl
y
Spacer Product Line: Products:
Funhaler: – Premium paediatric incentive spacerPremium paediatric incentive spacer– Specifically designed for children– Encourages children to take their
asthma medication => improved compliancecompliance
Breath-A-Tech– Low cost adolescent / adult spacer– Market leader in Australian market with
75% shareHigh gross marginsExpanding market US EU and AsiaExpanding market US, EU and AsiaDistribution in AUS in placeWorldwide distribution –
– licensing agreement with Respironics(NASDAQ:RESP)
– In process in EU, USPatents and regulatory approvals in place
For
per
sona
l use
onl
y
Respiratory: Respiratory: Growth StrategyGrowth Strategy• Funhaler
• Increase market penetration in Australia, EU and US• Establish the product in the key global paediatric
markets underpinned by strong marketing push
• Breath-A-Tech • Maintain leading market position in Australia and
continue roll out in Asia Pacific• Maximise opportunity through Respironics royalty in
other global marketsFor
per
sona
l use
onl
y
Respiratory: SummaryRespiratory: Summary• Good cash flow business• High marging g• Opportunity for significant growth in
EU, US and Asian marketsEU, US and Asian markets
For
per
sona
l use
onl
y
Regenerative MedicineRegenerative MedicineRegenerative MedicineRegenerative Medicine‘Prometheus Unbound’‘Prometheus Unbound’
• Goal: Utilize body’s regenerative capabilities to regrow andcapabilities to regrow andrestore lost, damaged or aging tissues and organs in the human bodythe human body
• A major ‘new frontier’ in medical sciencescience
For
per
sona
l use
onl
y
ReCell Autologous Cell HarvesterReCell Autologous Cell HarvesterReCell Autologous Cell HarvesterReCell Autologous Cell HarvesterPatented and proprietary autologous tissue engineering processengineering process – Provides for treatment of
Burns Acute or chronic woundsAcute or chronic woundsReconstructive and cosmetic skin procedures.
Key Product : ReCell®– Unique and Innovative device for harvesting, U que a d o a e de ce o a es g,
processing and reapplying patient’s skin cells – Sold as 'lab-in-a-box' kit replacing skin graft
techniquesAd t i l dAdvantages include:– On-site processing for immediate harvest and
spray-on application Increased viability and increased healing rates– Increased viability and increased healing rates
– Minimised scarring– Ability to be processed by clinician, not specialised
laboratory staff. yFor
per
sona
l use
onl
y
ReCell: Changes body’s response toReCell: Changes body’s response toReCell: Changes body s response to ReCell: Changes body s response to wound from ‘stop’ to ‘grow’wound from ‘stop’ to ‘grow’
Utilises body’s natural capability to regenerate tissue to enhance and accelerate healing processaccelerate healing processBurns, scalds and donor sitesScar revisions to improveScar revisions to improve colour and textureGlaborous skin loss injuriesE id l d f t hEpidermal defects such as acnePigmentation disorders such as Vitiligosuch as VitiligoProphylactic cosmetic rejuvenation proceduresF
or p
erso
nal u
se o
nly
ReCell: Growth ProspectsReCell: Growth ProspectsReCell: Growth ProspectsReCell: Growth Prospects
If ReCell is such a great technology… Why hasn’t it been more widelyWhy hasn t it been more widely adopted? Why taking so long to getWhy taking so long to get meaningful level of sales?
For
per
sona
l use
onl
y
ReCell: Growth ProspectsReCell: Growth ProspectsReCell: Growth ProspectsReCell: Growth Prospects‘Game-changing’, ‘disruptive technology’technologyConcept saleRequires changing the way surgeonsRequires changing the way surgeons practise medicine:– From “cut & stitch” to “scrap & spray”
Major customers:– Plastic, cosmetic, burns surgeons,
d t l i tdermatologists– Specialist medical facilities
F h Mi i t f H lth b idi iFrench Ministry of Health subsidizing 200 patient medico-economics study on the impact of ReCell on burn pwound healing.
For
per
sona
l use
onl
y
SummarySummarySummarySummaryNew CompanyNew CompanyNew, experienced managementNew approach to securingNew approach to securing “Product Champions” and achieving market penetrationNew emphasis on operational efficiencies and cost containment
For
per
sona
l use
onl
y
Summary: To DoSummary: To DoEstablish Avita as recognizable medical d i idi i ldevice company providing commercial tissue engineering and respiratory products in global marketsA hi l t ti i i tiAchieve sales penetration in existing markets with regulatory approval; endorsement of Key Thought LeadersE h d t tf li dEnhance product portfolio and distributionContinuous improvement to
f i d i lmanufacturing and operational efficienciesComplete clinical trials for FDA approval for ReCell in the UStReturn value to shareholders; this is your companyF
or p
erso
nal u
se o
nly
Thank you for yourThank you for your attention and supportattention and support
For
per
sona
l use
onl
y