Investor Presentation August Nasdaq: ELGX

Transcription

1 Investor Presentation August 2010 Nasdaq: ELGX

2 Safe Harbor This Presentation Material has been prepared to assist interested parties in making their own evaluation of Endologix, Inc. (the Company ) and does not purport to be allinclusive or to contain all of the Information that a prospective Investor may require to make such an evaluation. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this Presentation Material. This Presentation Material contains forward-looking statements reflecting the Company s current assumptions and models regarding its business and operations in upcoming years. Interested parties are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitations, product development delays, changing regulations, the ability to attract and retain business partners, market acceptance of the Powerlink System, competition from other medical device companies and therapeutic applications, and the ability to provide the capital required for product development, operations and marketing. Neither the Company nor its affiliates, agents or representatives give any representation or warranty as to the accuracy or completeness of this Presentation Material. 2

3 Executive Summary Only Medical Device Company Focused Exclusively on $1+ Billion Aortic Stent Graft Market Innovative Product Portfolio with Exceptional Long- Term Clinical Results Strong Financial Performance 1H 2010 Revenue Growth of 21% 77% Gross Margins Significant Continued Growth Potential Expanding Sales Force Robust New Product Pipeline 3

4 Management Team John McDermott, President & CEO Bard Peripheral Vascular, IMPRA Bob Krist, CFO CardioNet, Datum, Bridge Medical, McGaw Inc Joe DeJohn, VP Sales Bard Peripheral Vascular, Bausch & Lomb Martin Tyler, VP Global Marketing Accumetrics, Bard USCI, Baxter Stefan Schreck Ph.D., VP Technology Edwards Lifesciences, Shiley, Asst. Prof. U.S.C. Janet Fauls, VP of Regulatory & Clinical Cardiogenesis, Edwards Lifesciences, Alliance Pharmaceutical Gary Sorsher, VP Quality Bard Peripheral Vascular, Cordis Todd Abraham, VP of Operations Edwards Lifesciences, Cordis 4

5 5 Endologix AAA Repair Minimally Invasive Endovascular Stent Graft

6 AAA Demographics / Prevalence Affects ~1.2 Million People in U.S. Age Related Disease (mostly men) 200,000 New Diagnoses Annually Approximately 65,000 AAA Procedures Annually 60% EVAR 40% Open Surgery 13 th Leading Cause of Death in the U.S. 6

7 Open AAA Surgery Extremely Invasive High Mortality and Morbidity Long Operating Times Long Hospital Recovery Numerous Complications 7

8 Compelling Clinical Benefits Drive EVAR Adoption New England Journal of Medicine Study* Highlights EVAR Advantages Endovascular Open Number of Patients 22,830 22,830 % Reduction Perioperative Mortality 1.2% 4.8% 75% Length of Hospital Stay 3.4 days 9.3 days 63% *NEJM 2008:

9 Infrarenal EVAR Market 35% 2010 = $880M 10% $90 $310M $570M 65% $790M 90% U.S. ROW PEVAR EVAR CAGR = 10% 9

10 Competitive Landscape Anatomical Fixation Proximal Fixation Powerlink - Endologix Talent Medtronic Excluder WL Gore Zenith Cook 10

11 U.S. Competitive Landscape Infrarenal Thoracic PEVAR Juxtarenal ELGX MDT COOK GORE In Development IDE Enrolling In Development Fixation Anatomical Proximal Proximal Proximal AAA Necks 18 32mm 18 32mm 18 32mm 19 29mm Profile (OD) 21F 22F 24F 21F 26F 20.4F 23F AAA Limbs 10 23mm 8 22mm 8 20mm mm Sales Force ~75 ~150 ~100 ~110 11

12 Clinical Results Combined Results of Three Prospective, Multicenter Clinical Trials (up to 5 yr follow-up) 157 Patients at 28 U.S. Centers 0% Aneurysm Ruptures 0% Conversion to Open Repair 0% Device Migration 0% Stent Fractures 0% Graft Fatigue 0% Aneurysm-Related Mortality Reduced or Stable Aneurysm Sacs in 95% of Patients at One Year J. ENDOVASC THER. 2010;17:

13 Capable of Treating a Wide Range of AAA Anatomies 13

14 Long Term Outcomes Month 1 Year 3 14 Courtesy of Rod White, M.D.

15 15 Stent Grafts

16 New AAA Delivery System Launched in 2009 Integrated Sheath and Hemostasis Valve Lower Procedure Times and Blood Loss Compared to Competition 16

17 Global Sales Force U.S. Direct Sales Force 58 Territories at the end of Q ~260 Years of EVAR Experience 30% Expansion Planned For 2010 Reps are Highly Trained Aortic Specialists Profile = Top Performing Cardiovascular Reps Extensive Training Program Provide Direct Physician Support in 95% of Procedures International Distributor Sales Force 13 Distributors Covering 22 Countries Includes Europe, Asia and South America 17

18 Historical Revenue Growth Annual CAGR = 66% $60 $50 $40 $ Millions $30 $20 $10 $

19 ELGX Growth Drivers U.S. Sales Force Expansion Increase International Presence Develop the Market for Percutaneous AAA New Product Pipeline Expanded Size Range (Q4 2010) AFX Endovascular System Fenestrated Device Thoracic Stent Graft 19

20 Product Launches US PMA Approval VISIFLEX Ectatic Limbs Powerlink XL IntuiTrak EnSnare Guidewires SurePass Technology Multiple New Product Launches over Past 24 Months Suprarenal Extensions IntuiTrak Express New Sizes PowerFit 20

21 EVAR Unmet Needs Ability to Treat Short Aortic Necks and Juxtarenal AAAs Fully Percutaneous Secondary Interventions Endoleaks Lifetime Surveillance 21

22 First ever Randomized Multi-Center Trial to Compare Percutaneous EVAR to Surgical Cut Down EVAR 20 sites Enrolling 210 Patients Collaboration with Abbott on Closure Devices Complete Enrollment 2011 Approval Anticipated in

23 PEVAR Study Sites Jon Matsumura, MD University of WI MC Madison, WI Paul Jones, MD Mercy Hospital Chicago, IL Daniel Clair, MD Cleveland Clinic Cleveland, OH Mark Fillinger, MD Dartmouth-Hitchcock MC Lebanon, NH John Harris, MD Stanford University MC Palo Alto, CA J. Michael Bacharach, MD Heart Hospital Sioux Falls, SD Vikram Rao, MD Lake Hospital Willoughby, OH Christian Bianchi, MD Loma Linda VA Loma Linda, CA Mark Morasch, MD Northwestern UMC Chicago, IL Homayoun Hashemi, MD Dipkanar Mukherjee, MD Inova Fairfax Falls Church, VA Nikhil Kansal, MD VA San Diego/UCSD San Diego, CA ProGlide Prostar XL Jim Melton, DO Oklahoma Heart Hosp Oklahoma City, OK Carlos Timaran, MD VA Dallas Health System Dallas, TX Frank Arko, MD UT Southwestern Dallas, TX Zvonimir Krajcer, MD Igor Gregoric, MD SLEH at TX Heart Institute Houston, TX J. Keith Thompson, DO Forrest MC Hattiesburg, MS JJ Karmacharya, MD Miami VA Miami, FL Alan Matsumoto, MD University of VA Charlottesville, VA Douglas MacMillan, MD Mission St. Joseph Asheville, NC Peter Nelson, MD, MS VA Gainesville/UFL Gainesville, FL

24 AFX Endovascular System Low Profile Delivery System Optimized for PEVAR New Strata Graft Material Complete size range to treat all AAA Anatomies 24

25 Fenestrated Stent Graft Device to Treat Short Necks and Juxtarenal Aneurysms Expands the EVAR Patient Population 15% of Diagnosed AAAs Provides a Better Solution for Patients Currently Treated Off-Label Adjustable Branches Accommodate a Variety of Renal Anatomies 25

26 Thoracic Stent Graft Flexible Stent Design Proprietary Graft Material Potential for in-vivo Fenestrations to Preserve LSA Low Profile 26

27 ELGX Market Opportunities $90M Aortic Stent TAA Graft $400M $500M Percutaneous Indication $790M Fenestrated Device $300M $500M $880M $1.7B AFX New Sizes 27 PEVAR Infrarenal Juxtarenal Thoracic

28 2010 Financial Guidance Global Revenue of $62M - $66M Increase over 2009 of 18% - 26% International Represents ~15% of Total Continue to Generate Positive Cash Flow from Operations 30% Increase in Sales Force 70% Increase in R&D 28

29 Balance Sheet ($000 s) 6/30/10 12/31/09 Cash $22,428 $24,065 Total Assets 52,708 51,292 Bank Debt Stockholders Equity 44,616 42,854 Total Liabilities & Equity $52,708 $51,292 29

30 Executive Summary ~$1.7 Billion Aortic Market Opportunity by 2015 Compelling Products in each Market Segment Innovative Product Portfolio with Exceptional Long-Term Clinical Results Sales Force Expansion and R&D Pipeline Funded by Operating Cash Flow Strong Financial Performance 2010 Sales Growth of 18% to 26% 77% Gross Margins 30

31 31 Nasdaq: ELGX