Itamar Medical. Investor Presentation August 2018

Transcription

1 Itamar Medical Investor Presentation August 2018

2 Disclaimer Itamar Medical Ltd. (the "Company") is furnishing this presentation and any information given during this presentation, solely for the consideration of eligible investors who have the knowledge and experience in financial and business matters and the capability to conduct their own due diligence investigation in connection with the investment outlined herein. Prospective investors are urged to conduct an independent evaluation of the Company. This presentation does not constitute an offer of securities of the Company, or a solicitation to acquire or sell the Company s securities or to participate in any investment in the Company. The statements in this presentation should not be regarded as a basis for an investment decision of any kind, or as recommendation or opinion, or a substitute for investor discretion Statements in this presentation that are not historical facts might be considered as forward-looking statements based on current expectations of future events, in accordance with the Israeli Securities law, (the Securities Law ). These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements as a result of different factors including, but not limited to, the market demands for the Company's products; changes in general economic and business conditions; inability to maintain market acceptance of the Company's products; inability to timely develop and introduce new technologies and products; rapid changes in the market for the Company's products; loss of market share and pressure on prices resulting from competition; introduction of competing products by other companies; inability to manage growth and expansion; inability to attract and retain qualified personnel; changes in regulatory requirement, changes in scope of reimbursement, and inability to protect the Company's proprietary technology. All forward-looking statements included in this presentation are made only as of the date of this presentation. We assume no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events, regulatory changes, delay or withholding of regulatory approvals, inability to obtain or maintain medical insurance reimbursement for Company's products, negative results of clinical trials or other factors. The United States and Israeli securities laws prohibit any person who has material non-public information about a company ("Inside Information"), from purchasing or selling securities of such company, or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. Statements in this presentation and in any information given during this presentation might be considered as Inside Information, in accordance with the Securities Law. Therefore, any person aware of this presentation or of any information given during this presentation, may neither use, nor cause any third party to use, any Inside Information or any other information provided in connection with the presentation, in contravention of the Securities Law or any such rules and regulations thereunder. The Company, and its respective affiliates, employees and representatives expressly disclaim any and all liability relating to or resulting from the use of this presentation or any information given during this presentation or such other information by a prospective investor or any of its affiliates or representatives.

3 Itamar Medical Mission World Leader in Sleep Apnea Management Solutions for the Cardiology Market

4 Leader in Diagnostics of Sleep Apnea to the Cardio Space Flagship product: WatchPAT is a fast growing home sleep apnea test ( HSAT ) Sleep Apnea market growing at record rates propelled by cardiology, obesity and stress Powerful partnerships: Medtronic: co-marketing agreement and shareholder Philips: Bilateral distribution agreement (US/Japan) Increasing traction among cardiologists supported by new guidelines and direct US sales force Consistent quarter over quarter revenue growth Multiple regulatory approvals (FDA, CE, MHLW), broad insurance coverage Experienced management team and board members with proven success

5 The Market The Sleep Market The Cardiology Market Source: 25% of adults worldwide suffer from sleep apnea 1 About 80% in the US alone are undiagnosed 2 The diagnostic and treatment market is valued at $ 3.5 billion 3 1- American Academy of Sleep Medicine, Peppard, et al., American Journal of Epidemiology (2013) 2- Obstructive Sleep Apnea: Preoperative Assessment, Seet & Chung, Anesthesiology Clin 28 (2010) Fisher & Paykel, FY2016 Half Year results Presentation (Dx & Tx) 4- Heart Disease and Stroke Statistics 2017 At-a-Glance 5- Sleep Apnea and Cardiovascular Disease, JACC Vol. 52, No. 8, 2008, August 19, 2008: million cardiovascular patients in the United States 4 ~50% of patients suffer from sleep apnea; most of them (80% or more) are not diagnosed 5

6 Sleep Apnea - a Significant Comorbidity to Most Cardiac Disease OSA Comorbidity Drug resistant hypertension Congestive heart failure Type 2 Diabetes 76% 72% 83% Stroke Pacemakers Arrhythmias Coronary heart disease Atrial fibrillation 63% 59% 58% 57% 49% Source: Obstructive Sleep Apnea: Preoperative Assessment, Seet & Chung, Anesthesiology Clin 28 (2010)

7 Trends propelling the market Source: Sleep Apnea Types, Mechanisms, and Clinical Cardiovascular Consequences, Javaheri,et al, JACC VOL. 69, NO. 7,

8 Increased Risks of Leaving Sleep Apnea Untreated 2x 2x Increased risk of stroke 1 Risk of death from sudden cardiac arrest 2 5x Risk of death from cardiovascular disease 3 42% Increased risk of recurrence of atrial fibrillation following ablation 4 Sources: 1) Sleep Apnea and Incident Stroke, Redline et al, The Sleep Heart Health Study. American Journal of Reppiratory and Critical Care Medicine Vol ; 2) Obstructive Sleep Apnea and the Risk of Sudden Cardiac Death Gami et al, J Am Coll Cardiol 2013: 3) Young et al, J Sleep 2008; 4) Effect of Obstructive Sleep Apnea Treatment on Atrial Fibrillation Recurrence Shukla, Chinitz JACC Clinical Electrophysiology Vol 1,No 1-2, 2015

9 The American Academy of Sleep Medicine Officially Adopts Itamar Medical s technology for the Diagnosis of Sleep Apnea The leading U.S. medical organization for the treatment of sleep disorders began officially recognizing the PAT technology in its guidelines for clinical practice in 2017 Source: J Clin Sleep Med Mar 15; 13(3):

10 Strategy Implementation - a Unique Comprehensive Solution that enables Diagnosis and Treatment Total Sleep Solution Screening Diagnosing Treatment Reporting Itamar provides cardiologists with a comprehensive sleep solution, combining diagnostics and therapy

11 WatchPAT: More Effective/Easier to Use A medical grade, prescription device designed for easy at-home use The traditional way: Cumbersome sleep labs

12 WatchPAT: Integrated Platform To Diagnose and Treat Sleep Apnea A One-Stop Sleep Apnea Solution for Cardiologists Screening Diagnosing Treatment Reporting Systematic Screening with Questionnaire Patient awareness kits Waiting room video Waiting room posters Informative brochure Diagnosis with WatchPAT IDTF WatchPAT Direct Interpretation through CouldPAT collaboration with Sleep Physician CPAP treatment Philips CPAP distribution Airway Mng MAD DMEs Networks Patient Compliance Reporting Waiting list WatchPAT Test result CPAP Patient CPAP compliance rate Sleep Apnea prevalence rate SleepPath

13 Sleep Monitoring Platform - SleePath Integrated Sleep Apnea Patient Care Pathway for AFib Patients E-health could based platform

14 Multiple Business Models for Different Needs Therapeutic SleePath, CPAP and PAMS Services WatchPAT Direct Total Sleep Solutions Capital Sales WatchPAT TaaS Test as a Service

15 WatchPAT Direct Program Streamlining the HST A customizable workflow to enlarge the HST coverage Schedule the study with the patient Kit preparation Shipping & Handling Patient Support Center 24/7 Home Sleep Test Scoring & Reporting

16 Maximizing Value at a Fast Growing Market Making Total Sleep Solution" available to cardiologists Adding additional business model of Test as a Service ( TaaS ) Cardiology centered marketing and sales Adoption of PAT based technology by the Organization of Sleep Specialists

17 Consistent Sales growth

18 Consistent Revenue Growth Quarterly Revenue ($MM) $7.0M $6.0M $5.0M $4.0M $4.3M $3.6M $5.1M $4.0M $5.3M $4.2M $6.0M +26%* $5.5M +21%* $3.4M +20%* $6.1M +23%* $4.5M $3.0M $2.9M $2.0M $1.0M - Q1/17 Q2.17 Q3/17 Q4/17 Q1/18 Q2/18 * Q over PY Q US and Canada Revenue Total Revenue

19 Consistent Operational Loss Reduction Cash Based Operating Loss Non GAAP $2.5M $2.2M $2.0M $1.7M $1.5M $1.5M $1.5M $1.4M $1.0M $1.0M $0.7M $0.5M $0.5M $0.5M $0.4M - Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

20 Experienced Management Team Gilad Glick President and CEO Shy Basson CFO Dr. Koby Sheffy Senior Vice President and CTO Ira Prigat President of Itamar Medical Japan & China Efrat Litman V.P. of R&D Itay Kariv V.P. Advanced R&D Shlomo Ayanot V.P. Engineering and Operations

21 Thank You!

22 PARAMETERS Simplicity of Pulse Oximetry the Accuracy of PSG 8+ parameters + sleep stages, + true sleep time Lab PSG Home PSG WatchPAT Completion rate 99% vs 82% Misdiagnosis 3% vs 20% 4-5 parameters AHI, RDI, snoring, position Cardio Pulmonary Systems 1-2 parameters saturation motion Pulse Oximetry SIMPLICITY / COMFORT

23 Comp - irhythm irhythm Technologies, Inc. (IRTC) Nasdaq