Uroplasty, Inc. Investor Update Canaccord Genuity Conference December 6, 2011

Transcription

1 Uroplasty, Inc. Investor Update Canaccord Genuity Conference December 6, 2011

2 Forward Looking Statement This presentation includes forward-looking statements, including financial projections, relating to our business plan and growth strategies. For many reasons we may not achieve our financial objectives or successfully grow our business. Our reports filed with the U.S. Securities and Exchange Commission describe risks of our business and of an investment in us. We urge you to read our reports and carefully consider whether our securities are an appropriate investment for you.

3 Company Profile NASDAQ Listing: UPI Closing Price 1 : $4.03 Shares Outstanding 1 : Market Cap 1 : Operations: Employees: 20.8 million common 2.1 million options $84 million Headquartered in Minnetonka, MN Subsidiaries Uroplasty, LTD - UK Uroplasty, BV - The Netherlands US 95 (53 Field People) Netherlands 10 UK 4 Total As of November 30, 2011

4 Company Overview/Highlights Market Opportunity

5 Products Urgent PC (Overactive Bladder) Macroplastique (Stress Incontinence) Uses percutaneous tibial nerve stimulation (PTNS) to deliver an electrical pulse that travels to the sacral nerve plexus, a control center for bladder function Launched in 2006 Injectable soft-tissue bulking agent used to treat adult female SUI primarily due to intrinsic sphincter deficiency Launched in 2007

6 Urgent PC - Neurostimulation Urgent PC Provides percutaneous tibial nerve stimulation (PTNS) for the treatment of urinary urgency, urinary frequency and urge incontinence. Initial treatment course of 12 weekly office-based 30 minute treatments Strong published clinical data Minimally invasive

7 U.S. Urgent PC Expanded business Code Category 1 code in effect Strong clinical data Payment Medicare payment for 2011 Base ~$130 As high as ~$170 Private Payers higher Coverage - Ongoing

8 U.S. Execution to Expand Business Expanded Insurance Coverage for Urgent PC Treatments Initial focus on Medicare Coverage ~31 Million lives (10 regional carriers) with positive coverage policy ~16 Million lives (3 regional carriers) with negative policy A number of private-pay carriers have positive coverage policy (Approximately 84 million covered lives.) Aetna BC/BS Locals Local HMO s/ppo s Kaiser California HCSC (BC/BS) Scripps California United Healthcare

9 PTNS Medicare Coverage 65% Positive Coverage WA MT ND ME OR ID SD MN WI NY VT NH MA WY MI CT RI CA NV UT NE IA IL IN OH PA MD NJ DE CO KS MO KY WV VA AZ NM OK AR MS TN AL GA SC NC LEGEND Positive Coverage WPS TX LA NGS Highmark AK FL HI As of 9/12/2011

10 Market Opportunity ~ 33 million persons in the U.S. grapple with OAB (16% of population) ~ 11 Million (33%) of these persons bothered enough to seek treatment Our Opportunity ~ 6 Million (55%) of these patients CANNOT tolerate OAB drug therapy

11 OAB Treatment Options Behavioral Therapy Dietary Modification Anticholinergic Drugs Minimally- Invasive Surgery This class of drugs has annual US sales of $1.7 Billion Urgent PC Neuromodulation, non-surgical therapy Interstim Therapy ($200M+)

12 Competitive Landscape Botox Neurogenic bladder approved Study ongoing for idiopathic bladder Two neuromodulation systems in early stage pivotal studies. Barriers to Entry Uroplasty patents Time frames and completion of competitive study Late 2012 to 2014 Regulatory approval months Reimbursement clarity 12+ months after FDA approval 2-4 years to commercialization

13 U.S. Execution Increase Market Penetrations Target Market: ~10,500 physicians (~7,000 offices) Market Penetration Today 5,000 Urologists 3,500 Urogynecologist 2,000 Gynecologists Target Market Penetration 3 Years from Today ~6-7% ~35-40%

14 Urgent PC U.S. Active Customers (Doctors Offices) Q3 '11 Q4 '11 Q1 '12 Q2 '12

15 # of Boxes Urgent PC U.S. Boxes of Leads , ,379 1,668 1, Q3 '11 Q4 '11 Q1 '12 Q2 '12 U.S. usage of Urgent PC is growing very quickly

16 U.S. Execution Expanded Market Coverage 43 Direct Employed Reps VT NH MA RI CT NJ DE MD Rep Tenure 17 Reps/Greater Than 1 Year 16 Reps/Less Than 6 Months 10 Reps/No Medicare Coverage

17 Other Opportunities Explore regulatory path for Urgent PC in U.S. for fecal incontinence Already approved in Europe Work closely with European KOL s on Urgent PC for OAB and fecal incontinence reimbursement

18 Financial Overview

19 $ in millions Historic Revenue Fiscal years Ending in March 31 U.S. Consolidated Annual Uroplasty Revenue $13.9 $14.7 $11.9 $ $6.1 $8.3 $6.3 $8.0 $6.1 $ $0.1 $1.4 FY 3/31/2006 FY 3/31/2007 FY 3/31/2008 FY 3/31/2009 FY 3/31/2010 FY 3/31/2011

20 Income Statement (non-gaap)* Fiscal Years Ending March 31 Sales $8,311 $13,856 $14,742 $11,863 $13,787 Adjusted Gross Profit $5,774 $10,998 $12,553 $9,890 $11,470 Adjusted Operating Exp. G & A R & D S & M Total FY2007 $2,390 $2,244 $5,066 $9,700 FY2008 FY2009 FY2010 FY2011 $2,905 $1,703 $8,181 $12,816 $2,970 $2,885 $8,835 $14,290 $2,453 $1,723 $7,364 $11,540 $3,023 $1,683 $9,908 $14,614 Adjusted Operating (loss/gain)* ($3,926) ($1,818) ($1,737) ($1,650) ($3,144) *Excludes non cash charges for Stock Options, Depreciation & Amortization of $1046, $2,111 and $1,885 and $1,553, respectively, in FY 2007, 2008, 2009 & In Thousands

21 $ in millions Quarterly Revenue $5.0 $4.0 $3.0 U.S. Urgent PC $4.0 $3.5 $3.2 $3.0 $4.7 $5.0 $2.0 $1.0 $0.9 $1.0 $1.0 $1.3 $1.5 $2.0 $0.0 6/30/2010 9/30/ /31/2010 3/31/2011 6/30/2011 9/30/2011 FY 2011 FY 2012

22 Income Statement (non-gaap)* Fiscal Year 2012 Sales $4,653 $4,967 Adjusted Gross Profit $3,956 $4,222 Adjusted Operating Exp. G & A R & D S & M Total Q1 $ 909 $ 425 $3,537 $4,891 Q2 $ 812 $ 443 $3,804 $5,059 Adjusted Operating (loss/gain)* ($ 937) ($ 837) *Excludes non cash charges for Stock Options, Depreciation & Amortization of $406 and $438, respectively, in Q1 and Q2. In Thousands

23 Financial Model (non-gaap) Fiscal Years Ending March 31 Operating Profit, excluding non cash charges, breakeven at $25 Million in Revenue Margin Analysis FY 08 FY 09 FY 10 FY 11 Target $45 Million Revenue Adjusted Gross Profit 79% 85% 83% 83% 82% - 86% Adjusted Operating Exp. General & Administration Research & Development Sales & Marketing 21% 12% 59% 20% 17% 60% 21% 14% 62% 22% 12% 72% 9-10% 10-13% 31-35% Total Adjusted Operating Expenses 92% 97% 97% 106% 48 56% Adjusted Operating (loss/gain)* -13% -12% -14% -23% 26% - 36% *Excludes non cash charges for Stock Options, Depreciation & Amortization of $252, $1046, $2111 and $1,885 respectively, in FY 2006, 2007, 2008 & In Thousands

24 Balance Sheet In Thousands 9/30/11 3/31/11 Cash, Equivalents & Investments $17,323 $19,593 Working Capital (exc. ash, equivalents & investments) $995 $566 Total Assets $23,419 $26,438 Long Term Debt $0 $0 Shareholders Equity $20,475 $22,629 Capital Structure (9/30/11) In Millions 20.8 Common Shares 2.1 Outstanding Options (weighted average exercise price=$3.64) 22.9 Fully Diluted Total

25 Summary

26 In Summary Multi-billion dollar market for OAB patients who cannot tolerate drug therapy Clinical data confirms efficacy OrBIT study vs. #1 pharmaceutical showed clear efficacy SUmiT study vs. validated sham New CPT Category 1 code for PTNS is Reimbursement amount provides economic incentive to physicians Ramping up US field organization Strong balance sheet and cash position Barriers to entry gives runway to growth

27 Essential Incontinence Solutions THANK YOU! Urgent PC Macroplastique