Annual Meeting of Shareholders 24 August 2017 - NZX · Annual Meeting of Shareholders ... • Close...
Transcript of Annual Meeting of Shareholders 24 August 2017 - NZX · Annual Meeting of Shareholders ... • Close...
PacificEdge2017Presentation
BOARDOFDIRECTORS
GOVERNANCE
BoardofDirectors
Experienceingovernance,finance,cancerresearch,biotechnologyandlifesciences,investmentandbusinessadvisory.
SubsidiaryBoardDirectors
In-countrycommercialexperienceandscientificand/orclinicalexpertise.
ScientificandClinicalAdvisoryBoards
Expertadviceonglobalclinicalneedsandproductapplications;andscientificprogressandclinicalopportunities.
ChrisGallaher IndependentDirectorChairman
DavidBand IndependentDirector
BryanWilliams IndependentDirector
DavidLevison IndependentDirector
AnatoleMasfen IndependentDirector
DavidDarling ExecutiveDirectorandChiefExecutiveOfficer
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PacificEdge2017Presentation
MEETINGAGENDA
• Presentations:
• AddressfromtheChair,ChrisGallaher
• AddressfromtheChiefExecutiveOfficer,DavidDarling
• ShareholderDiscussion
• ResolutionsasperNoticeofMeeting:
• Re-electionofDavidDarlingasaDirector
• Re-electionofBryanWilliamsasaDirector
• AuthorisetheDirectorstofixtheauditor’sremuneration
• GeneralBusiness
• CloseofAnnualMeeting
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PacificEdge2017Presentation
USAREVENUERECOGNITION
• USAgenerates90%ofPacificEdge’srevenue
• Untilnow,hasbeendominatedbytestsrunforCMSpatients
• RecoveryoftherevenuefromthesetestsislargelycontrolledbythecompletionandattainmentoftheLocalCoverageDetermination
• Duetoageofsomeofthesereceivables,aprudentandconservativeapproachwastaken,resultinginabaddebtwritedownandprovisioninFY17accounts
• WellprogressedinprocesstoattainLocalCoverageDetermination
• Movingforward,therewillbeincreasedcustomerdiversityaswegainmorerevenuefromnon-federallyfundedcustomerssuchastheVA,reducingtheexposuretotheCMS
PacificEdgeprovidestesttopatientcoveredbyMedicare
PacificEdgebillingandreimbursementagentsendsinvoicesenttoMedicare
RecordedasrevenueandasareceivableinPacificEdgefinancial
statements
LocalCoverageDetermination
Reimbursementofoutstandingreceivables
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PacificEdge2017Presentation
OURPURPOSEANDSTRATEGYDeliveringInnovativeSolutionsfortheEarlyDetectionandManagementofCancer
• Focusonhaematuriaandurothelialcancer;commercialisingasuiteofCxbladdertests(one-stop-shop)
• TheUnitedStatesistheworld’slargesthealthcaremarketandourprimaryfocus.
• HavecommercialpartnershipsinNewZealandandAustraliaandareestablishingapresenceinSingapore.
• Estimatethatthereareupto5milliontestopportunitiesforCxbladderonpatientswithurothelialcancerinthesemarketseveryyear,withanestimatedtotalmarketsizeofuptoUS$7.5billion.
• Targetinghighgrowth.Fourmainareasofinvestment:People,IntellectualProperty,MarketExpansionandProductDevelopment
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PacificEdge2017Presentation
HAEMATURIAANDUROTHELIALCANCERHaematuriaissymptomaticofbladdercancer
• 7millionpeopleintheUSApresentwithhaematuriaeveryyear
• Clinicalguidelinesrequiretheybeworkedupwithexpensiveandinvasiveprocedures
• Followingtreatmentpatientsarerequiredtobemonitoredevery4-6monthsforuptofiveyearswithexpensiveandinvasiveprocedures
• Thehighrecurrenceratemeansthatmanypatientsaremonitoredfortherestoftheirlives
ThisprovidesPacificEdgewithasignificantmarketopportunityforitsCxbladdersuiteoftests.
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PacificEdge2017Presentation
CXBLADDERSPANSTHECLINICALPATHWAYAWorldFirst
SECO
NDA
RYHEA
LTHCA
RE(Specialisthealth
care
Provider/Urologist/SpecialistCancerC
linic)
FULLEVALUATIONTESTING
DIAGNOSEDWITHBLADDERCANCER
CANCERMANAGEMENTDuetohighrecurrenceofbladder
cancer,patientsundergoregulartestingYearOne:uptosixtimes
YearTwotoFive:uptofourtimes/year
PRIM
ARYHEA
LTHCA
RE
(GeneralPractition
er)
80% 20%
1.5MILLIONPATIENTSWITHHAEMATURIA
PRESENTINGTOHEALTHCAREANNUALLY
REFERRALTOASPECIALIST
UROTHELIALCANCER:NonInvasive,Accurate,Fast,LowCost,HighUtility
CxbladderTriageIn-Market2015/16
CxbladderDetectIn-Market2013/14
CxbladderResolveNZLaunchDec2016USRollout2018
CxbladderMonitorNZLaunchDec2015USLaunchDec2016
Helpphysiciansmonitorbladdercancerinpatients,particularlyfortherecurrenceofbladdercancer
Frontlinetoolforusebyphysiciansintheearlyevaluationofhaematuria(bloodintheurine)
Forusebyurologistsforpatientswhohavebeenreferredforafullworkupdetectsthosewithcancer
Forusebytheurologistinthework-upandmanagementofthepatient.Helpsegregatelowgradetumoursfromhighgradeandlatestagetumours
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PacificEdge2017Presentation
FY17MILESTONESSignificantProgressAchieved
Officiallaunchofbladdercancer.mesite
CxbladderMonitorpresentationatAUA
MTANZAwardwinner
InsurancecoveragewithSovereign
Insurancecoveragewithnib
JointanalysisofKaiserPermanentestudycompletedwithpositiveandcompellingresults
OfficialUSlaunchofCxbladderMonitor
NZLaunchCxbladderResolve
Successful$8mshareplacement
NamedinTIN100TopTenHotEmergingCompanies
ApprovedprovidertoTRICARE
AddedtostandardofcareforWaitemataDHB
APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR
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PacificEdge2017Presentation
FY17FINANCIALS(FOR12MONTHSTO31MARCH2017)62%UpliftinProductSales
Positivegrowthinproductsalesfromnewandexistingcustomers,particularlyinNorthAmerica.
SalesandrevenueexpectedtoprogressinFY18astransformationalcustomerscomeonline
Continuedinvestmentintofourstrategicareas:People,Products,MarketExpansion,IntellectualProperty
Operatingrevenueoutgrowingexpenses
Netoperatingcashflowatasimilarleveltothepreviousyear$(17.9)m
Operatingloss$14.9million(excluding$6.2mofnon-cashitems)
OPERATINGREVENUE
LABORATORYTHROUGHPUTIncludesUserProgrammesandcommercialtests
35%increaseintest
throughputcomparedtothepreviousyear
Sixmonthfinancialreportingperiod
62% increasein operatingrevenue
comparedtothepreviousyear
0
2000
4000
6000
8000
10000
12000
FY14 FY15 FY16 FY171H 2H
0
2
4
6
8
10
FY15 FY16 FY17
NZ$Million
IHOpRevenue 2HOpRevenue TotalRevenue
Inthepastfouryears,operatingrevenuehasgrownfrom$150,000to$8.1million
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PacificEdge2017Presentation
VETERANS ADMINISTRATION
COMPLETED√ SignedFederalSupplySchedule Agreement(Feb2016)andnegotiatedcontractpricefortests(2016)
InProgress Targeting largeVAclinics. AnticipateUserProgrammesfor thelarger keysitesasperotherlargenon-VA customers
TRANSFORMATIONALCUSTOMERSVeteransAdministrationandTRICARE
TRICARE
COMPLETED√
Approved asaproviderandnegotiatedcontractpricefortests(October2016)
InProgress ThePacificEdgeUSsalesteamareleveragingexistingrelationshipswithhighvolumesitesintargeted areas.AnticipateUserProgrammesforthelarger keysitesasperotherlargecustomers
KAISER PERMANENTE
COMPLETED√ Completionof largescaleUserProgrammeinfirsthalfFY17andpositiveanalysiswithcompellingfindings
In Progress InfinalnegotiationswithKaiserPermanenteregardingclinicaluseofCxbladder
OTHERCUSTOMERS
InProgress USsalesteamcontinuingtotargetindividualurologistsandlargeurologypracticestoinitiatenewUser Programmes,andtransitionearlyadoptersintocommercialcustomers.Thefocuswillbeonlargepracticesinacademiccentres
Workwithacademic centresand hospitalstogainacceptanceofCxbladderintotheircarepathways
CENTRES FORMEDICAREANDMEDICAID
InProgress RegulatoryprocesstogainaLocalCoverageDecisionwiththeCMSiswellprogressed
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PacificEdge2017Presentation
OTHERMARKETSNewZealand,Australia,SouthEastAsia
AUSTRALIA • TolmarAustralia- dedicatedurologysalesexecutivesleveragingtheirexistingnetworks
• Targetinglargehospitalsaswellasindividualurologists• ThreeCxbladderproductsnowavailableinmarket
NEWZEALAND • Agreementswithseverallarge publichealthcareproviders toincludeCxbladderinclinicalpathway
• CxbladderundercoverbytwoAustralasianhealthcareinsuranceproviders
SOUTHEASTASIA • CommercialbasenowestablishedinSingaporeincludingdistributionandlogisticsprocesstoallowtestanalysisinNewZealand
• SignedupnewUserProgrammeswithtwolargehospitals.• SigninguptwomoreUserprogramswithlargeSingaporean
hospitals
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PacificEdge2017Presentation
REVENUEOUTLOOKANDDRIVERSFY18RevenueUpliftExpectedInLineWithAnnualTrends
• UnitedStatesremainstheprimaryfocus• NewZealand:ContinuetoencourageuptakebyDHBs• Australia:ConversionofUserProgrammesandgreatersalescoverage• Singapore:GrowUserProgrammebaseandinitiatefirstcommercial
customer
MARKETS
• Increasedproductrangeenteringthemarket,particularlyintheUS• RolloutofCxbladderPredict(launchedinDecember2016)PRODUCTS
• ConversionofUserProgrammestocommercialcustomers• BringKaiserPermanenteonboardascommercialcustomer• BuildcommercialrelationshipsandinitiateUserProgrammeswithtargeted
largescaleVAfacilities• CompletetheregulatoryprocesstogainanLCDforCMS
CUSTOMERS
• EncourageinclusionofCxbladderinStandardofCare• ObtainLocalCoverageDecision(LCD)fromtheCMS• Commercialagreementswithlargescaleorganisations• InitiatenewUserProgrammes• Increasedmarketinginvestment,particularlyintodigitalmedia
SALESCHANNELS
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PacificEdge2017Presentation
PRIORITIESFORFY18
MARKETS
• UnitedStatesremainstheprimaryfocus• NewZealand:ContinuetoencourageuptakebyDHBs• Australia:ConversionofUserProgrammeswithearly
adopters• Singapore:GrowUserProgrammebasewithnewurology
practicesandhospitals
PRODUCTS
• RolloutofCxbladderResolveinAustralia,withsoftlaunchinUSbyyear-end
• LeveragethecombinedpoweroftheCxbladdersuiteacrossthehaematuriaandurologypathwaysaffectingtheStandardofCare
CUSTOMERS
• BringKaiserPermanenteonboardascommercialcustomer• BuildcommercialrelationshipswithtargetedlargescaleVA
facilitiesandurologypracticesthatservicetheactivemilitary• InitiateUserProgrammeswithtargetedVeterans
Administrationsites• CompletetheregulatoryprocessforCentersforMedicare
andMedicaidServices• Transitionearlyadoptersintocommercialcustomers
SALESCHANNELS
• ContinuetoinitiatenewUserProgrammes• Increasedmarketinginvestment,particularlyintodigital
media• Targetinginstitutionalandlargepracticeacademicsitesinthe
US
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PacificEdge2017Presentation
RESOLUTIONS
RESOLUTION1:ThatDavidDarling,whoretiresbyrotationandiseligibleforre-election,bere-electedasaDirectoroftheCompany
RESOLUTION2:ThatBryanWilliams,whoretiresbyrotationandiseligibleforre-election,bere-electedasaDirectoroftheCompany
RESOLUTION3:ThattheDirectorsoftheCompanybeauthorisedtofixtheauditor'sremunerationfortheensuingyear
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PacificEdge2017Presentation
PROXIESANDVOTING
Wehavereceivedthefollowingvalidvotesandproxies:
PROXIESANDPOSTALVOTES
FOR AGAINST DISCRETIONARY VALIDVOTES/PROXIES
RECEIVED
%OFTOTALISSUEDCAPITAL
Re-electionofDavidDarling(Resolution1)
151,751,04586.06%
23,180,25013.15%
1,393,2360.79%
176,324,531 44.11%
Re-electionofBryanWilliams(Resolution 2)
151,622,65085.96%
23,157,60013.13%
1,614,8490.92%
176,395,099 44.13%
Authorisation tofixtheauditors’remuneration(Resolution3)
174,689,68299.05%
90,1090.05%
1,577,9840.89%
176,357,775 44.12%
Votinginstructionsforthosevotingonlineareavailableat:http://www.linkissuers.co.nz/VirtualAnnualMeeting/OnlinePortalGuide.pdf
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PacificEdge2017Presentation
www.pacificedge.co.nzwww.cxbladder.comwww.pacificedgedx.com
DavidDarlingChiefExecutiveOfficerPacificEdgeLimitedTel:+6434795802Mobile:+6421797981Email:[email protected]
CLOSEOFTHEMEETINGPresentationsareavailableatwww.pacificedgedx.com
PacificEdge2017Presentation
DISCLAIMER
InformationTheinformationinthispresentationisanoverviewanddoesnotcontainallinformationnecessarytomakeaninvestmentdecision.ItisintendedtoconstituteasummaryofcertaininformationrelatingtotheperformanceofPacificEdgeLimited.Theinformationinthispresentationisofageneralnatureanddoesnotpurporttobecomplete.ThispresentationshouldbereadinconjunctionwithPacificEdge'sotherperiodicandcontinuousdisclosureannouncements,whichareavailableatnzx.com.NotfinancialproductadviceThispresentationisforinformationpurposesonlyandisnotfinancialorinvestmentadviceorarecommendationtoacquirePacificEdgesecurities,andhasbeenpreparedwithouttakingintoaccounttheobjectives,financialsituationorneedsofindividuals.PacificEdge,itsdirectors andemployeesdonotgiveormakeanyrecommendationoropinioninrelationtoacquiringordisposingofshares.Inmakinganinvestmentdecision,investorsmustrely ontheirownexaminationofPacificEdge,includingthemeritsandrisksinvolved.Investorsshouldconsultwiththeirownlegal,tax,businessand/orfinancialadvisorsinconnectionwithanyacquisitionofsecurities.FutureperformanceThispresentationcontainscertain'forward-lookingstatements',forexamplestatementsconcerningthedevelopmentandcommercialisationofnewproducts,regulatoryapprovals,customeradoptionandresultsoffutureclinicalstudies.Forward-lookingstatementscangenerallybeidentifiedbytheuseofforward-lookingwordssuchas,'expect','anticipate','likely','intend','could','may','predict','plan','propose','will','believe','forecast','estimate','target','outlook','guidance'andothersimilarexpressions.Theforward-lookingstatementscontainedinthispresentationarenotguaranteesorpredictionsoffutureperformanceandinvolveknownandunknownrisksanduncertaintiesandotherfactors,manyofwhicharebeyondthecontrolofPacificEdgeandmayinvolvesignificantelementsofsubjectivejudgementandassumptionsastofutureeventswhichmayormaynotbecorrect.Therecanbenoassurancethatactualoutcomeswillnotmateriallydifferfromtheseforward-lookingstatements.Anumberofimportantfactorscouldcauseactualresultsorperformancetodiffermateriallyfromtheforward-lookingstatements.Theforward-lookingstatementsarebasedoninformationavailabletoPacificEdgeasatthedateofthispresentation.Exceptasrequiredbylaworregulation(includingtheNZXMainBoardListingRules),PacificEdgeundertakesnoobligationtoprovideanyadditionalorupdatedinformationwhetherasaresultofnewinformation,futureeventsorresultsorotherwise.NorepresentationTothemaximumextentpermittedbylaw,PacificEdgeanditsadvisers,affiliates,relatedbodiescorporate,directors,officers,partners,employeesandagentsmakenorepresentationorwarranty,expressorimplied,astothecurrency,accuracy,reliabilityorcompletenessofinformationinthis presentation.
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