Investor Presentation CRM business. January 2014

Transcription

1 Investor Presentation CRM business January 2014

2 Agenda CRM Industry Overview Sorin s Business Overview Joint Venture Overview Joint Venture Rationales 2

3 CRM Industry Overview

4 Market Status: Global CRM Devices Global CRM Device Market, Highly Concentrated Market 12,500 US$M 2.8% 0.4% 10,000 7, % Medtronic St.Jude Medical 5, % 44.9% Boston Scientifice 2,500 Biotronic % Sorin Group Other Implantable Defibrillators Pacemakers Worldwide market size: USD 9.5Bn Annual growth : 1.7% # of procedures worldwide: 940,000 cases in ,000 pacemaker implanted 270,000 ICD (including CRT-D) implanted Source:Millennium research group Note: CRM = Cardiac Rhythm Management 98% market are dominated by 5 companies Top 5 players : No.1: Medtronic No.2: St. Jude No.3: Boston Scientific No.4: Biotronic No 5: Sorin Group 4

5 Sorin s Business Overview

6 Sorin Group Overview HEART VALVES 127 million Tissue and mechanical valves, annuloplasty rings for heart valve replacement and repair CARDIAC RHYTHM MANAGEMENT (CRM) 283 million Implantable cardiac defibrillator (ICD) and pacemaker systems to restore normal cardiac rhythm, cardiac resynchronization therapy (CRT) systems to treat heart failure and Holter systems 39% 39% 17% 17% 731 million 44% 44% CARDIOPULMONARY 322 million Heart-lung machines, oxygenators, autotransfusion systems when extracorporeal circulation is needed during prosthetic replacement, bypass, valve repair Notes: Sorin headquartered in Milan, Italy and listed on the Milan Stock Exchange since No.1 market position Cariopulmonary product Market Share in China 2 No.2 market position in Europe heart valve market Mechanical Valves 34% 3 2 No.3 market position in Europe CRM markets No.2 market position in Japan CRM markets Imported Cardiac Oxygenators 26% Heart Lung Machine 53% 0% 10% 20% 30% 40% 50% 60% 6

7 Sorin s CRM Global Sales& R&D Capability Sales By Geography, 2012 Current R&D and Manufacturing Locations Japan RoW 10% 48% 10% 15% 731 million 9% 52% Europe North America 28% 28% CARDIOPULMONARY CARDIAC RHYTHM MANAGEMENT (CRM) HEART VALVES Mirandola (Italy) Munich (Germany) Denver (USA) Clamart (France) Minneapolis (USA) Meylan (France) Saluggia (Italy) Vancouver (Canada) Note: Got approval of Pacemaker in China in No sales of CRM products yet till

8 Sorin s CRM Milestones 2011:FIRST CRT device with automated weekly optimization: SonR 1981:World s FIRST microcomputer within an ELA Medical s pacemaker 1995:World s FIRST dual-chamber ICD implant: ELA Medical* DEFENDER 1994:World s FIRST implant of a biventricular pacing system (ELA Medical) 2007:World s smallest dual chamber 2003:World s FIRST sensor to optimize patient hemodynamics pacemaker: REPLY 2002:First sensor to optimize AV and VV 2005:World s smallest ICD: OVATIO DR & VR 2008:World s FIRST CRT-D with hemodynamic sensors: PARADYM Present 8

9 MicroPort s Current CRM R&D Program MicroPort s own CRM R&D Program Officially Launched in 2009 Talent Product Resources A experienced team of around 40 people. 4 technology leaders each with >10 years R&D experince in international CRM companies >20 Masters and PHDs Many people with 5-10 years experience in medical device R&D Pacemakers: - DDD - Prototype ready Leads: - Design done - Active and Passive - Ready for animal test Full set of testing equipments Shared R&D platform with other MP branches Clinical support from KOL and leading hospitals 9

10 Joint Venture Overview

11 JV Structure Sorin CRM Holding SAS 49% US$9.8 m MP Shanghai 51% US$10.2 m Exclusive distribution contract for all JV products MicroPort can recognize revenue and consolidate profit MicroPort Sorin CRM Co. Ltd Imported Products Local Assembly Local Development Imported pacemakers, ICD, CRT in Pipeline. Locally assembled pacemakers, ICD, CRT Build up local manufacturing capacity; Products include pacemakers, ICD, CRT, leads and Programmers 11

12 Business Plan of JV Step 5 Step 4 Manufacture fully locally developed CRM device in or components in China Step 3 Develop & manufacture local programmers Step 2 Manufacture local CRM leads to complement the domestic CRM devices products Step 1 Locally assemble Sorin s CRM device in China Distribute Sorin s imported pacemakers, ICDs, and CRTs right 12

13 Joint Venture Rationales

14 Mission Statement Be the leader in Chinese CRM market, through a close long-term collaboration between MicroPort and Sorin Leverage MicroPort s existing sales infrastructure and Sorin s innovative products to obtain significant market share in premium segment Collaborate on local R&D and manufacturing to deliver cost-efficient products for value segments in China and other emerging markets 14

15 Rationales 1 Penetrate into Vast Chinese CRM Market 2 Strengthen Leadership Position in Cardiovascular Medical Device Market 3 Bring-in Advanced Technology with Local Innovation 4 Achieve Better Financial Outcome than Standalone 15

16 Penetrate into Vast Chinese CRM Market Increased demand from aging population Trend of aging population 10.6% 10.9% 9.4% 9.6% 9.6% 9.9% 10.1% 10.3% A 2009A 2010A 2011A 2012E 2013E 2014E 2015E Huge Growth Potential for China CRM CRM Market Size In China (CNY/Million) Age above 65(million people) % of total population Pacemaker ICD/CRT Source:Global Data According to Global Data, the market size for CRM device in China is CNY 1.05 billion in Chinese CRM market is expected to grow around 10% annually and reaches CNY 2.7 Billion by 2023 CRM market in China today is like DES market in 2004: huge market potential is to be unleashed when local players come with low priced products 16

17 Strengthen Leadership Position in Cardiovascular Medical Device Market Broaden Product Offering while Strengthen Leadership Position in Cardiovascular Market JV will have full range of products including pacemakers, ICD, and CRD. MicroPort will become the first local player with full CRM product offering MicroPort will be the first one stop solution provider with DES, EP and CRM device CRM is the largest market segment in the cardiovascular medical device market Foreign companies dominated 90% of the market in China 17

18 Bring-in Advanced Technology with Local Innovation Sorin St Jude Medtronic Group Medical Boston Scientific Biotronik Device Sorin Products Advisa(MRI) Adapta L Ensura Accent Ingenio Altrua 60 EL (MRI) (MRI/RF) (MRI/RF) Evia DR-T MRI Yes Yes No Yes Yes No Yes Yes RF/Home monitoring Yes No/Yes No/Yes No/Yes Yes No Yes Yes Sleep Apnea Monitoring Yes No No No No No Soon(*) No Vp Minimization SafeR MVP MVP MVP No No Rhythmlq VpS Size / Weight 8 cc / 20 g 13 cc / 22g 13 cc / 31 g 13 cc / 22g 13 cc / 24 g 13 cc / 30 g 12 cc / 24.5 g 12 cc / 25 g 2.5V 9.6⑴ Sensors MV + G G G G G MV + G MV + G CLS+G Auto Threshold/Capture V A & V A & V A & V A & V (autocap) V (autocap) V (autocap) Source: Pacemakers listed in this chart are features of premium models from each major manufacturers A&V (autocap) Advanced Technology 40+local R&D personals plus global R&D team Full-range CRM Products Local Innovation Locally developing Next generation World class CRM products Features such as MRI, RF/home monitoring, and Sleep Apnea Monitoring etc. in this chart are most important features for high end pacemakers Sorin s pacemaker has almost all most important features and outshine others as the smallest one among all model. Sorin model only lags behind others on Auto Threshold feature. Sorin CRM offers full range of products for the treatment of cardiac rhythm dysfunctional diseases: pacemakers, ICDs, CRTs, monitoring systems and accessories. Its products are recognized worldwide and comparable to products of other CRM leaders such as Medtronic, Boston Scientific and St. Jude JV will utilize Sorin s existing product lines and offer full range CRM products to Chinese market 18

19 MicroPort s #1 Market Share Franchises Category Description Brands Key Product R&D Pipeline Coronary/DES #1 Products and therapies to treat coronary artery disease Firebird 2 TM Rapamycin-Eluting CoCr Coronary Stent Top selling product of MicroPort Has successful entered into South American markets such as Ecuador and Uruguay Firehawk Third generation DES with biodegradable drug coating Cobalt-chromium target-eluting stent coated with sirolimus Results of All Trials published on CIT 2013 (March 2013) Awaiting SFDA approval and CE approval Neurovascular #1 Medical devices in treating the central nervous system related vascular diseases APOLLO First intracranial arterial stent system produced in the PRC WILLIS Intracranial stent graft system, the first Chinese designed and manufactured stent for treatment of intracranial aneurysms Tubridge Revascularization device for the treatment of large intracranial aneurysms First-in-man study completed in 2011 Kicked off clinical trial in 2012 Endovascular #1 Products and therapies to treat abdominal and thoracic aortic aneurysms and peripheral vascular diseases Hercules -T, Hercules -B and Aegis Abdominal Aortic Aneurysm ( AAA ) / Thoracic Aortic Aneurysm ( TAA ) Stent Graft System Leader in China s AAA / TAA market in terms of units implanted New generation of Ultra-Low-Profile AAA System Llow profile thoracic stent-graft system Electrophysiology Launch in 2014 Minimally invasive medical devices for the treatment of EP diseases EasyLoop First product used in the procedure of complex arrhythmias treatment of MicroPort Columbus 3D Mapping System; Kicked off clinical trial in 2012 Voyager Irrigated RF ablation catheter; Kicked off clinical trial in

20 MicroPort in China CRM Market: We ve Done This Before Rapidly Growing China DES Market China DES Market Size Rapidly Growing China CRM Market China CRM Market Size 1, $ $ A 2011A 2017E A 2023E MicroPort is the Leader in China DES Market Leader in China CRM Market Market Share of Major DES Players in China Market Share of Major CRM Players in China 100% 100% 80% 27.9% 25.2% 23.4% 24.6% 25.6% 24.9% 80%???% 60% 40% 20% 21.2% 20.4% 21.3% 22.7% 23.3% 24.0% 17.6% 17.9% 20.8% 22.9% 22.9% 1.5% 23.5% 1.0% 2.0% 1.9% 4.5% 5.0% 32.0% 35.3% 32.5% 27.9% 23.7% 22.6% 60% 40% 20% 100.0% 30.0% 30.0% 0% E 0% 2013E 2023E MNC Brands Other domestic brands Jiwei Lepu Microport MNC Brands Other MicroPort 20

21 Disclaimers This document is for information purposes only and does not constitute or form part of any offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for any securities of MicroPort Scientific Corporation, and no part of it shall form the basis of, or be relied upon in connection with, any agreement, arrangement, contract, commitment or investment decision in relation thereto whatsoever. FORWARD-LOOKING STATEMENTS Some information contained on this website contains forward-looking statements. These forward-looking statements include, without limitation, those regarding our future financial position, our strategy, plans, objectives, goals and targets, future developments in the markets where we participate or are seeking to participate, and any statements preceded by, followed by or that include the words "believe", "intend", "expect", anticipate", "project", "estimate", "predict", "is confident", "has confidence" and similar expressions are also intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of MicroPort s management and are subject to significant risks and uncertainties. MicroPort Scientific Corporation undertakes no obligation to update any of the statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that could cause actual future results to differ materially from current expectations include, but are not limited to, general industry and economic conditions, PRC governmental policies and regulations relating to the medical device manufacturing industry, competition in the medical device manufacturing industry, our ability to develop new products and stay abreast of market trends and technological advances, our goals and strategies, our ability to execute strategic acquisitions of, investments in or alliances with other companies and businesses, fluctuations in general economic and business conditions in China. CONFIDENTIALITY This presentation is confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. 21

22 THANK YOU