Post on 25-Jul-2020
Digitalhealthcareforrespiratorydisease
TonyKea)ngChiefExecu)veOfficerandManagingDirector
tony@resapphealth.com.au
InvestorPresenta)onMay2016
ASX:RAP
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DisclaimerThispresenta)onhasbeenpreparedbyResAppHealthLimited(“ResApp”).Theinforma)oncontainedinthispresenta)onisaprofessionalopiniononlyandisgiveningoodfaith.Certaininforma)oninthisdocumenthasbeenderivedfromthirdpar)esandthoughResApphasnoreasontobelievethatitisnotaccurate,reliableorcomplete,ithasnotbeenindependentlyauditedorverifiedbyResApp.Anyforward-lookingstatementsincludedinthisdocumentinvolvesubjec)vejudgmentandanalysisandaresubjecttouncertain)es,risksandcon)ngencies,manyofwhichareoutsidethecontrolof,andmaybeunknownto,ResApp.Inpar)cular,theyspeakonlyasofthedateofthisdocument,theyassumethesuccessofResApp’sstrategies,andtheyaresubjecttosignificantregulatory,business,compe))veandeconomicuncertain)esandrisks.Actualfutureeventsmayvarymateriallyfromtheforward-lookingstatementsandtheassump)onsonwhichtheforward-lookingstatementsarebased.Recipientsofthisdocument(Recipients)arecau)onedtonotplaceunduerelianceonsuchforward-lookingstatements.ResAppmakesnorepresenta)onorwarrantyastotheaccuracy,reliabilityorcompletenessofinforma)oninthisdocumentanddoesnottakeresponsibilityforupda)nganyinforma)onorcorrec)nganyerrororomissionwhichmaybecomeapparentaZerthisdocumenthasbeenissued.
Totheextentpermi[edbylaw,ResAppanditsofficers,employees,relatedbodiescorporateandagents(Agents)disclaimallliability,direct,indirectorconsequen)al(andwhetherornotarisingoutofthenegligence,defaultorlackofcareofResAppand/oranyofitsAgents)foranylossordamagesufferedbyaRecipientorotherpersonsarisingoutof,orinconnec)onwith,anyuseorrelianceonthispresenta)onorinforma)on.
Thispresenta)onisnotanoffer,invita)on,solicita)onorrecommenda)onwithrespecttothesubscrip)onfor,purchaseorsaleofanysecurity,andneitherthispresenta)onnoranythinginitshallformthebasisforanycontractorcommitmentwhatsoever.
AllamountsinAustraliandollarsunlessstatedotherwise.
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Digitalhealthcareforrespiratorydisease§ Developingtheworld’sfirstclinically-tested,regulatory-approvedrespiratorydisease
diagnos)ctestandmanagementtoolsforsmartphones- Noaddi'onalhardwareneeded
§ Hugeglobalmarket,700M+doctorvisitsannuallyforrespiratorydisease1
- Uniqueopportunitytointegrateintotelehealthproviders’exis)ngplaborms- Strongdemandalsoseenwithinclinics,emergencyroomsandoutpa)entfacili)es
§ Compellingclinicalevidencefrommul)plepediatricclinicalstudies,adultstudyunderway§ SuccessfulPre-Submissionmee)ngheldwithUSFDA,targe)ngUSapprovalbyendof2016§ Recentlycompleteda$12.5Mcapitalraisetopursuenewmarketopportuni)esand
strengthenbalancesheet
31.ResAppes)matebasedonOECDdoctorvisitspercapitadataandassuming10%ofvisitsareforrespiratorydisease(basedonUSdata)
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Companyoverview
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CapitalStructure(ASX:RAP)MarketCap. $132M
SharePriceasof29April2016
$0.205
SharesonIssue1 644M
PerformanceShares2 93.75M
Op)ons3 21.8M
StaffIncen)veOp)ons4 25M
CashBalanceasof29April2016
$14.9M
1. Includes121Mescrowedshares2. Issuedonachieving$20Mofannualrevenueoronanacquisi)on3. 15.5M,exercisepriceof2.6c,expire31/12/16;4.5M,exercisepriceof
28c,expire29/4/19;1.87M,exercisepriceof30c,expire29/4/194. IssuedtoMD,5Mop)onsatexercisepriceof2.5c,5Mat5cand10M
at10c,5yearexpiry;IssuedtoDrAbeyratne,3Mat5cand2Mat10c
BoardofDirectorsDrRogerAston Non-Execu)veChairman(ChairmanofOncosil,formerCEOofMaynePharma,CambridgeAn)body,cofounderofpSividaCorp)
DrTonyKea)ng ManagingDirectorandCEO(formerDirector,CommercialEngagementofUniQuest,engineeringmanagementroleswithExaCorpora)on)
MrBrianLeedman Execu)veDirectorandVP(ChairofAusBiotech-WA,co-founderofImugeneLtdandOncosilMedicalLtd,formerVP,IRatpSividaCorp.andGroupMarke)ngManageratE&Y-WA)
MrChrisNtoumenopoulos Non-Execu)veDirector(14+yearsinvestmentbanking,AssociateDirectoratCPSCapital,formerlyatCi)group,IndianOceanCapital)
Substan)alShareholdersFreemanRoad:6.84%UniQuestPtyLtd:6.57%Top20Shareholders:41.6%
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Diagnosisofrespiratorydiseaseisthemostcommonoutcomefromavisittothedoctor
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Acutecondi'onsURTIs,influenza,bronchi)s,bronchioli)s,pneumonia,pertussis,croupChronicCondi'onsAsthma,COPD,cys)cfibrosis,bronchiectasis
§ 700M+doctorvisitsp.a.globally1forrespiratorydisease→ 125MinUS2(10%ofallvisits)→ 6-8MinAustralia3
§ US$10.5Bp.a.UShospitalcostsforpneumonia4§ HighprevalenceandgrowthinAsia
1.ResAppes)matebasedonOECDdoctorvisitspercapitadataandassuming10%ofvisitsareforrespiratorydisease(basedonUSdata)2.Ambulatorycasevisits,Na)onalAmbulatoryMedicalCareSurvey20103.AustralianLungFounda)on4.HCUPSta)s)calBrief#160
Currentlydiagnosedusingstethoscope,imaging(x-ray,CT),bloodand/orsputumtests
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Revolu)onarytooltodiagnoserespiratorydiseasebasedonsoundsignatures
§ ExclusiveworldwidelicensetomachinelearningtechnologydevelopedbyAssociateProfessorAbeyratneatTheUniversityofQueensland
§ Usessignaturesincoughingandbreathingsoundstodiagnosedisease
§ Ini)aldevelopmentatUQfundedbyTheGatesFounda)ontoreducethe1Mchilddeathsp.a.duetopneumoniainthedevelopingworld
§ Patentapplica)onfiledinUS,Australia,Europe,China,JapanandSouthKorea
§ Canusemicrophonesintoday’ssmartphones→ Noaddi'onalhardwarerequired
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Cough Spectra too is different
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Cough Spectra too is different
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Verifiedbycompellingpediatricclinicalevidence
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2013Study Sensi'vity Specificity Accuracy
Pneumoniavs.allrespiratory1 94% 100% 96%
Asthmavs.pneumonia2 100% 80% 90%
1. Abeyratneetal.,AnnalsofBiomedicalEngineering,20132. Kosashietal.,IEEETransac)onsinBiomedicalEngineering,20153. ResAppPressRelease30September20154. ResAppPressRelease10November20155. ResAppPressRelease31March2016
Currentstudy(startedMarch2015)- FundedbyResApp- ManagedbyTheUniversityofQueensland- Sites:JoondalupHealthCampusandPrincess
MargaretHospital,Perth,Australia- 598pediatricpa)entsenrolledtodate
Proofofconceptstudy(2013)- FundedbyTheBillandMelindaGates
Founda)onandTheUniversityofQueensland- Site:SardjitoHospital,Indonesia- 91pa)ents,majorityundertheageof5- Resultspublishedinpeer-reviewedjournals1,2
2015StudyPreliminaryResults Sensi'vity Specificity Accuracy
Pneumoniavs.norespiratory4 100% 95% 97%
Asthmavs.norespiratory3 97% 92% 95%
Bronchioli'svs.norespiratory4 100% 100% 100%
Croupvs.norespiratory4 94% 100% 99%
URTIvs.norespiratory4 100% 95% 96%
Pneumonia,crouporbronchioli'svs.URTI4 89-100% 90-95% 89-98%
Differen'aldiagnosisofpneumonia,croup,URTIandbronchioli's5
91-99% 89-98% 89-98%
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Achievingbreakthroughperformanceindiagnosis§ Lowerrespiratorytractdiseasediagnosis
- Effec)vetreatmentneedsiden)fica)onoflowerrespiratorytractinvolvement- Correctlydetectedlowerrespiratorytractinvolvementin97%ofcasesini'ally“missed”by
experiencedcliniciansusingastethoscope
§ Causeofpneumoniadiagnosis“Weneedfaster,less-expensivediagnos@ctestsfordoctorstoaccuratelydiagnosethe
causeofpneumoniasotheycaneffec@velytreatit”USCDC(2015)1- Incorrectdiagnosisleadstounnecessaryandineffec)vean)bio)cuse- Iden)fyingthecausetodayis)meconsuming,costlyandonlyavailableinter)aryhospitals- Preliminaryresultsdemonstratedsepara'onofbacterialandatypicalfromviralpneumoniawith
89%and90%accuracy
91. USDepartmentofHealthandHumanServicesPressRelease,Feb25,2015
(h[p://www.cdc.gov/media/releases/2015/p0225-pneumonia-hospitaliza)ons.html)
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Uniqueopportunitytodeployalongsidetelehealth,oneofthefastestgrowingtrendsinhealthcare§ DeliverResApp’sdiagnos)ctestanywhere,any)mewhileretainingaclinician’sinput§ UStelehealthisalreadylarge,andgrowingrapidly
§ Telehealthbenefitsall:payors,pa)entsandhealthcareproviders§ 30%oftelehealthconsultsforrespiratorydisease1,noaccurateremotediagnosisavailable
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75Mconsultsp.a.
(UStelehealth‘evisits’in2014es)matedbyDeloi[e)1
US$12BUSTAM
(GoldmanSachsUStotaladdressablemarketes)mate)
56%growth
(Growthrateun)l2018es)matedbyIHS)
1. Deloi[e,eVisits:the21stcenturyhousecall(August2014)2. HIS,WorldMarketforTelehealth(2014)3. GoldmanSachsEquityResearch,TheDigitalRevolu)onComestoUSHealthcare(June2015)4. Uscher-PinesandMehrotra(HealthAffairs,2014)
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Pursuingatrulyglobalopportunity§ SignificantgrowthintelehealthinEuropeandAustralia
- PlantofileforCEMarkinsecondhalfof2016
§ Hugepoten)alinAsiaPacificwherethereareover1billionsmartphoneusers1
- Highprevalenceofrespiratorydiseaseandna)onwideshortageofdoctorsinChina2
- Chinesemobileonlineconsulta)onexamples:
§ Ac'vepartnershipdiscussionsinallregions
111. ForresterResearch2. “DearthofDoctorsinChinaSaidtoPutChildren’sHealthatRisk,CaixinOnline,h[p://english.caixin.com/2016-01-21/100902234.html
92Mac)veusers229ques)onsperminute
Chunyuyisheng PingAnHaoyisheng
25Mac)veusers95,000appointmentsperday
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Targe)ngmul)plemarketsegments
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Telehealth Clinicaluse Developingworld Directtoconsumer
Marketsize
• 22.5Mrespiratory-relatedUStelehealthconsultsp.a.
• 13.4MUSEDvisitsforrespiratorydiseasep.a.1(~4.6Mforchildren)
• 1Mchilddeathsduetopneumoniap.a.3• 151Mcasesofpneumoniaindevelopingcountriesp.a.3
• 400MiPhoneusers4• 1.6BAndroidusers4• mHealthappmarketexpectedtogrowto$25Bbyendof20175
Valueproposi'on
✓ Theonlyremoteclinically-accuratediagnos)ctoolavailable
✓ Easilyintegratedintoexis)ngplaborms
✓ Reducecosts(<$10vs>$200forx-ray)
✓ Reduce)me(x-rayadds~30mins,culturescantakedays)
✓ Lowcost,accurate&fast✓ Usablebynon-medical
personnel✓ IntegratesintoIMCI
framework
✓ Convenience✓ Lowcost✓ Consumer
empowerment
Commercialstrategy
Partnerwithtelehealthproviderstoreach10sofmillionsofpa)ents
Ini)aluseinemergencydepartments(ED),extendingtoregularclinics
Partnerwithleadinginterna)onalaidagenciestoequipfieldpersonnel
Directtoconsumerviaappstorestotargetgrowthinconsumer-ledhealth
Revenuemodel B2Bpertestfee(<$10)fromtelehealthproviders
B2Bpertestfee(<$10)fromhealthcarepayors
B2Bannualsubscrip)onfromaidagencies
B2Cdownloadandpertestfeedirectfromconsumers
1. ResAppes)matebasedonOECDpercapitadata2. NHAMCS(2011)3. WHOes)mate
4. Sta)sta(2014es)mates)5. Research2guidancemHealthAppDeveloperEconomics(2014)
700MdoctorvisitsinOECDforrespiratorydiseasep.a.1
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Improvingchronicrespiratorydiseasemanagement§ 334Mpeoplehaveasthma1
- 17.7MinUS2,30MinEurope3,2.3MinAustralia4
- $30B+p.a.USeconomicburden2
- Pa)entadherencetoasthmamedica)onsisgenerallyverypoor
§ 65MpeoplehavemoderatetosevereCOPD5
- Emphysemaandchronicbronchi)s,primarycausedbysmoking- 3M+peoplediedofCOPDin2012,6%ofalldeathsglobally5
§ HighprevalenceofasthmaandCOPDinChina
§ OpportunitytomeasuretheseverityofasthmaandCOPD,withoutthecostofaddi)onalhardwareortheneedtocarryanextradevice
§ Clinicalcollabora'onstobeannouncedshortly
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1. TheGlobalAsthmaReport2014(GlobalAsthmaNetwork)2. USCDC3. EuropeanLungWhiteBook4. AsthmaAustralia
5. WHO6. Interna)onalStudyofAsthmaandAllergiesinChildhood7. COPDFounda)on
1in7childrenhasasthma6
1in5adultsover45hasCOPD7
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2015:Anoutstandingyearofachievements
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¨ RaisedAU$4millionandlistedontheASX¨ Ini)atedandenrolled598pa)entsinmul)-sitepediatricclinicalstudy¨ Reportedposi)vepreliminaryresultsfrompediatricclinicalstudy¨ Ini)atedadultclinicalstudy¨ Appointedbest-in-classFDAregulatoryconsultant–ExperienGroup(Sunnyvale,CA)¨ FiledPre-SubmissionpackagewiththeUSFDA¨ Builtuptheteamwiththreenewhires(soZwaredevelopment,clinical/regulatory
opera)ons)¨ Developedhighperformancecross-plabormsoZwarelibrarythatcanbedeployedvia
smartphoneapp,SDKorcloud-hostedSoZware-as-a-ServiceAPI
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2016:Keymilestoneswellinhand
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¨ Obtainedapprovaltoenrolladultpa)entsatsecondhospitalsite,TheWesleyHospital(Q1)¨ Demonstratedsuperioritytostethoscopeforlowrespiratorytractdiseasediagnosis(Q1)¨ Securedpartnershipwithglobalhumanitarianorganisa)onfordevelopingworldtrial(Q1)¨ SuccessfullyheldPre-Submissionmee)ngwiththeUSFDA(Q1)¨ Newbenchmarkresultsachievedusingexpanded524pediatricsubjectdataset(Q1)¨ Reportedpreliminaryresultsforsepara)onofviral,bacterialandatypicalpneumonia(Q1)¨ Raised$12.5Mtoexpandmarketopportunity(Q2)¨ Reportpreliminaryresultsfromadultclinicalstudy(Q2)¨ Ini)atepivotalclinicalstudyinUSandAustralia(Q2)¨ FiledenovopremarketsubmissionwithFDAforfirstResAppproduct(mid-year)¨ FileforCEMarkinEurope(secondhalfofyear)¨ FDAmarke)ngapprovalforfirstResAppproduct(Q4)
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Summary§ Revolu)onarytechnology–diagnosisandmanagementofrespiratorydiseasewithoutthe
needforaddi)onalhardware§ Compellingpediatricclinicalevidence§ Newbreakthroughresults:
- Detec)nglowerrespiratorytractinvolvementwhichmaybemissedbyausculta)on- Diagnosingthecauseofpneumonia(viral,bacterialoratypical)
§ ResultsfromadultclinicalstudydueinQ22016§ SuccessfulUSFDAPre-Submissionmee)ngheldinQ12016
- Confirmeddenovoregulatorypathway,combinedUSandAustralianpivotalclinicalstudy§ On-tracktobringproducttoUSmarketbyendof2016,launchviatelehealthpartnerto
reachmillionsofpa)entsquickly§ Poten)alEuropean,AustralianandAsianmarketentryinparalleltoUS§ Strongcashposi)onfromrecent$12.5Mcapitalraise
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