3rd Quarter 2015 Results. Navamedic ASA 30 October 2015

Transcription

1 3rd Quarter 2015 Results Navamedic ASA 30 October 2015

2 Q Highlights Acquisition of Observe Medical with innovative med tech product holding global sales potential - Sippi Sippi launched in first European markets Continued sales growth for Pharma and Healthcare Products business 4% sales growth in Q3 13% sales growth year to date Pharma and Healthcare Products EBITDA increased by 11% to NOK 5.1m Navamedic and OM combined EBITDA was NOK 1.5m One-off acquisition related costs of NOK 2.5m in the quarter 2

3 Observe Medical acquisition completed Initial payment of NOK 35 million NOK 25 million cash consideration NOK 10 million paid through share issue; 888,100 new shares at NOK Future royalties and milestones based on sales success Previous OM shareholders now hold 9.4 per cent of Navamedic shares Transaction in line with Navamedic strategy Entry into medtech with owned product holding global potential Launch ready product with proprietary technology Ability to leverage Navamedic organization and capabilities in launch Product family with additional development potential beyond current use OM already integrated into Navamedic as Medtech business area and launch underway 3

4 Navamedic Q profit and loss statement NOK million Q Q YTD 2015 YTD 2014 Income Gross profit Gross margin 25.3% 22.5% 24.8% 24.5% Operating costs EBITDA EBITDA margin 2.4% 7.9% 4.9% 6.5% EBIT EBT Net profit Sales returned to growth in Q3 driven by strong development in medical nutrition, urology and dermatology Improved gross margin Operating costs include transaction related costs, Medtech operational costs and increased sales headcount in core business Consolidated EBITDA positive Net profit NOK -2.1m Includes NOK 3,7m in transaction costs, operating expenses and depreciation related to OM acquisition 4

5 Medtech (OM) financials NOK 1,000 Q Income 50 Gross profit 32 Gross margin 64% Operating costs EBITDA ex transaction costs Transaction costs, OM acquisition EBITDA Sippi in early launch phase Sales, as expected, minor given short time on the market One-off transaction costs 5

6 Pharma and Healthcare business financials NOK million Q Q YTD 2015 YTD 2014 Income Gross profit Gross margin 25.3% 22.5% 24.8% 24.5% EBITDA EBITDA margin 8.3% 7.8% 6.8% 6,5% All corporate costs are carried by the Pharma and Healthcare business Sales growth +4% in quarter and 13% YTD Higher gross margin Operating expenses growing based on sales headcount additions Strong EBITDA development up by 11% to NOK 5,1m in quarter 6

7 Group balance sheet NOK million 30 Sep Dec Sep 2014 Fixed assets Current assets of which is cash Equity Long term debt Short term debt Total balance Equity ratio (%) 44.8% 52.2% 50.1% Changes in fixed assets, equity and long term debt reflect OM acquisition in Q3 Inventories reduced compared to previous year and year-end Long term debt increase: NOK 13.3m borrowings in bank NOK 29.5m in contingent consideration related to OM 7

8 Cash flow statement NOK million YTD 2015 YTD 2014 Cash at beginning of period Net cash from operations Net cash from investments Net cash from financing Net currency effects Net change in cash during period Cash at end of period Strengthened cash flow Company well funded for normal operations and launch of Sippi 8

9 Navamedic strategy Focus on defined, strategic product areas offering attractive margins Pharma and Healthcare business focused on Nordic markets Seeking broader sourcing base through additional suppliers Expand business through synergistic/expansive acquisitions Profitability Product mix OPEX control Decrease risk Strengthen portfolio Supplier contracts Targeted growth Profitable segments Leveraging expertise An even stronger Navamedic Non-organic growth Synergistic or expansive acquisitions and partnerships 9

10 Navamedic focus Therapeutic Segments Geographic Intensive Care Medical Nutrition Female care Urology Dermatology Oral medicine Partnerships Innovation & Growth 10

11 Sippi - automated digital urine measurement Manual system The last analog vital parameter in the ICU Sippi Automatic system Sippi offers documented benefits: Time saving for healthcare personnel Measurement accuracy Easy to use Biofilm preventention and warning 11

12 Sippcoat & Sippsense reduces biofilm build-up, a common cause of hospital acquired infections 1 Sippcoat - Reduces biofilm formation Two-fold protection system 2 Sippsense - Biofilm warning indicator Sippcoat zone 1 2 The Sippcoat treated zone acts as a temporary barrier for biofilm formation Microbial transportation is thereby reduced Sippsense alert level If biofilm builds up, Sippsense will alert, providing early warning for changing the disposable unit 12

13 Market potential urine meters Initial launch markets: 25,000 ICU beds Prioritized EU markets: 25,000 ICU beds First launch markets: Germany Norway Sweden Finland Denmark in Q4 Global potential: 360,000 ICU beds Estimated global market value: NOK 2 Bn 13

14 Sippi - launch progress Strong distributors signed in first wave countries 30 clinics in Germany, Norway, Sweden and Finland testing Sippi -systems First German reference clinic recruited - will act as center of excellence & training facility Tenders submitted in Norway and Sweden Denmark launch during Q4 Identifying and evaluating additional distribution partners in other European markets Introducing new medical technology and routines takes time but positive user experiences from all sites 14

15 Sippi - IPR, Clinical and Product development Additional patent granted in Q3 for Sippcoat Patent granted for Improved Urine Measurement Device and Method covering the technology for biofilm inhibition in urine measurement device via encapsulated silicone oil technology Strong IP protection of Sippi technologies four patents families filed or granted Three new clinical studies on Sippi initiated results expected in 2016 Pediatric intensive care Ward use outside of intensive care Antibacterial effects of Sippcoat Sippi wireless data transmission to Patient Data Management Systems (PDMS) via Blutooth Low Energy Development program ongoing, expected launch in 2016 First available real time digitalized fluid balance measurement system Negotiations with PDMS suppliers for communincation links ongoing Post quarter: Development for GE Healthcare PDMS-system Centricity TM announced Evaluating additional applications of Sippi system technologies 15

16 Pharma and Healthcare business with positive outlook 4% sales growth in Q3, 13% sales growth year-to-date Improved EBITDA margin Q3 as well as year-to-date Positive sales development for key brands Contract with main supplier Aspen extended until 2017 Nordic markets represented 77% of sales and Benelux 23% Additional products from Aspen transferred to Navamedic in the Nordics in 2016 Evaluating portfolio additions in speciality areas 16

17 Navamedic ASA outlook Navamedic Medtech - Sippi Identification of additional distribution partners in key European markets Development of Sippi wireless data transmission and communication with PDMS systems Continue to build scientific body of evidence on Sippi for potential expanded use Targeting profitability in 2017 Focus on further margin improvements in Healthcare and Pharma Business Focus on improving margins and continued sales growth in the Nordic markets Emphasis on products with attractive margins and expanding the portfolio Benelux portfolio discontinued by year-end, causing short term margin pressure Solid cash position well funded for operations moving forward Alliances and acquisitions for non organic growth 17

18 3rd Quarter 2015 Results Navamedic ASA 30 October 2015