Good morning, and welcome to today's Miravo Healthcare webcast as part of the Planet MicroCap Showcase. It is now my pleasure to turn the floor over to your host, Jesse Ledger, President and CEO of Miravo Healthcare. Sir, the floor is yours. Great. Thank you. Good morning, everyone. Thanks for taking some time to listen to our presentation today. I'm joined by Mary-Jane Burkett, who's our CFO as well. I'm going to provide you a bit of an overview of our business, some of the highlights, and Mary-Jane's going to take you through some of the numbers as well. Let's get started. The usual legal disclaimer here. We'll skip through this. We also do refer to some non-IFRS measures in our presentation. At the end of this slide deck, you can find reconciliation on those non-IFRS measures. Miravo Healthcare. We are a Canadian-focused healthcare company with global reach and a portfolio of commercial-stage prescription and non-prescription products. We've got over 25 products, seven of which are proprietary, that we license out to different markets around the world. We also have a manufacturing facility. Our business is really broken down into three different segments, all of which contribute in a positive way to our bottom- line profitability and growth potential. Our first segment is our Commercial segment. This is your traditional pharmaceutical business, where we've got a national sales force. We promote certain of our products to physicians in Canada and have all of the resources and infrastructure necessary to manage that part of the business. The second segment would be our International Licensing and Royalty segment. This is managed out of our Irish office in Dublin. This is where we monetize our intellectual property portfolio through licensed transactions with different global pharmaceutical companies. Really, any of our business outside of Canada is managed through our Licensing and Royalty segment. Our third segment is our Production and Services Segment. I mentioned before, we have a manufacturing facility. It's an FDA-approved site just outside of Montreal, Canada, and it focuses on semi-solid creams, topical-type products. This is where we generate or earn revenue on the manufacture and supply of finished products to some of our international license and distribution partners. Looking at our business, we really repositioned our business in 2019 after we acquired really our Commercial segment. We had a significant acquisition of the Aralez Pharmaceuticals Canada business, as well as a couple of key royalty streams, and really moved from being primarily a manufacturing-focused company in 2018 and earlier to being the diversified company that we are today with the three different segments. Our Commercial segment is really focused on four different therapeutic areas, sort of pain neurology with a particular focus on migraine, as well as allergy and dermatology. We have a number of recent product launches and upcoming new product launches, both in Canada and internationally. 2021 is a bit of an investment year for us. We've got three new product launches in Canada, and obviously, it costs money to get products onto the market. We're making some investments there, as well as other key growth initiatives, in particular, a real major focus on business development and building out a pipeline for future value creation. From a financial standpoint, a bit of a snapshot here. In 2020, just over CAD 71 million of adjusted total revenue, CAD 28.4 million Adjusted EBITDA. A strong cash position, just about CAD 24 million as of the end of the year. We do have debt with an attractive 3.5% coupon and a fairly clear path to repayment, which we'll talk about momentarily. We did pay over CAD 22 million of debt back last year. Before I get into our sort of more detail on the segments, I'll talk a little bit about our growth strategy. We've got a few different ways that we're growing our business. We are not an R&D-focused company. We are a commercial-focused company. The way that we will grow our business across our three different segments is really if we look at the Canadian Commercial segment, we've got inorganic and organic growth opportunities. Inorganic in that we're looking to in-license and acquire new, innovative, growth-oriented products that would fit within our existing focus areas of pain neurology, allergy, and dermatology. We're also looking at organic growth, so continued growth of our core promoted products, which I'll talk about in a minute, as well as new product launches through our Canadian commercial infrastructure. Internationally, we're looking at expanding the geographic footprint of our products through global license and distribution partners, which also ties in, to a certain extent, to our manufacturing, our production and services segment, where in some cases, we are manufacturing and supplying those finished products for those partners. If we take a look at our Canadian Commercial segment, this segment generated about CAD 40 million or just a little bit less than CAD 40 million of total revenue last year. It's about 53% of our business. The two key products currently in this portfolio, Cambia and Blexten, generated CAD 25.2 million in top-line sales. Blexten is a 2nd-generation antihistamine, so it's a treatment for allergies as well as urticaria or hives. It's been on the market for five years, and we have exclusivity through to the end of October 2024. This is a great product. It's got a fantastic safety profile relative to our key competitor, cetirizine. It's got excellent efficacy profile and really is positioned as the new gold standard for allergy and urticaria treatment. Cambia is a migraine treatment. It contains diclofenac potassium, an NSAID. It's a powder for oral solution, so it comes in a little sachet, like a sugar packet that you add to water. This is a first-line treatment option for migraineurs. It's acute treatment for mild to moderate migraineurs. Really, the main differentiating factor on Cambia relative to other migraine treatments is how fast it works. It starts working as quickly as 15 minutes. Obviously, if you're suffering from migraines, a fast-acting product is quite important. We have patent on Cambia until the end or middle of 2026. Suvexx is our most recent product launch. We launched this back in September of last year, so early days. It's another migraine treatment, acute migraine, more of a second-line treatment option. It's a fixed-dose combination of a commonly prescribed triptan class drug called sumatriptan, as well as naproxen, more for moderate to severe migraineurs. This is a drug that was originally developed by GlaxoSmithKline, and as a result, we've got a very robust data package from a clinical efficacy standpoint, and probably the most well-studied migraine treatment available on the market today. We'll take a little bit of a look here at sort of what's going on with Blexten. We've launched Blexten. We're into our fifth year now. We're just up over 16% market share from a total prescription standpoint, and the product, as you can see, has been growing quite nicely. The lumpiness really is a function of the seasonality of the allergy business. Now, normally, 16% market share would be quite an achievement, and we'd be happy with that. In our case, we think we've got a long way to go. We don't see any reason why Blexten can't be the number one prescribed antihistamine product in Canada before we lose exclusivity. The way that we're doing that is we're taking market share away from cetirizine. This is another competing product. For those of you in the United States, you know this as ZYRTEC. In Canada, it's REACTINE. When we launched Blexten, cetirizine had nearly 72% of the market. They're down to about 56%, and we believe that we'll eclipse that cetirizine market share prior to loss of exclusivity. Again, the reason why that's happening is it's simply a better product than cetirizine. Physicians love it. It's easy to prescribe, and patients appreciate the product. Taking a look at Cambia. It's been on the market for nine years now. Steady Eddie growth. We're up about 5% market share now. This is a very fragmented market. There are six or seven different branded triptans, which are sort of the dominant players in the acute migraine market, as well as generic versions of those products. So a lot of competition, a lot of noise, a lot of low-priced products, but our premium-priced Cambia has carved out a nice 5% market share. We continue to see year-over-year growth in the low double- digits and don't see any reason why that'll slow down over the next few years as we approach the end of our patent. I talked a little bit about Suvexx earlier. Just a little bit more detail on the phase III study. We've got fantastic data, not only in acute migraine for adults, but also menstrual migraine, and really interesting data in patients that are intolerant of or non-responsive to other currently approved migraine medications. What that means is if a patient is on another triptan and they fail or aren't tolerant, they can be put on Suvexx, and we've got data that shows superior efficacy, which is a really strong product. We're getting really great feedback from physicians and patients as they've tried this since the launch in September, and we hope to be able to provide some launch metrics when we announce our Q1 results in May. A couple of sort of pipeline products in our commercial business. Blexten, of course, the version that we're selling now is an adult version, so we've got pediatric forms coming up. The slide here says an oral syrup. It's actually an oral solution formulation as well as an orally dispersible tablet formulation. Hopefully we'll get a Health Canada review decision on that later this summer and launching shortly thereafter. We also recently relaunched a couple of products, NeoVisc ONE and NeoVisc+. These are viscosupplements, so injectable hyaluronic acid that's injected into the joints of patients with osteoarthritis. We've been on this market for a better part of a decade, ran into some production issues for the last couple of years, and so now we've reentered the market and we're in the process of recapturing our market share and accounts. This just happened in January, so again, early days. The rest of our Commercial segment portfolio consists of the products here, minus NeoVisc ONE and NeoVisc+. Based on the information I provided before, this is about a CAD 40 million segment, CAD 25 million coming from Blexten and Cambia. The rest of it comes from these products here. We don't spend much money on these products. These are really legacy products and cash cows for us for the most part. Taking a look at our Production and Services segment. This is about 17% of our business, just under CAD 13 million of revenue last year. Around 90% of the business comes from Pennsaid 2%, the first product in this list, and supply to Horizon Therapeutics for the U.S. market. We do have some new incremental opportunities that will add to the revenue in this segment. We launched Pennsaid 2% in Switzerland earlier this year through our partner, and we've also recently announced a deal for Resultz in the United States and have some other recent product launches as well. Incremental gains coming from those products over the coming years. Our manufacturing site is actually currently operating at about 25% capacity on one shift, but it is profitable, and this is a really unique situation that we're in because we've got a great site. It's relatively cost-effective to operate and maintain with roughly CAD 400,000 a year CapEx spend. We've got significant additional capacity. As we expand the geographies for our proprietary products, in particular, Pennsaid 2% and down the road Resultz, we'll be able to fill up this capacity, make better use of that. Obviously, if the plant is profitable and covering its expenses today, that only gets better as we better utilize that capacity. Looking at our third segment, the Licensing and Royalty segment. This is about 30% of our business, so just over CAD 21 million of revenue last year. The key products here, VIMOVO, which is a fixed dose combination of naproxen and esomeprazole, it's for osteoarthritis. Resultz, which is our head lice treatment. And then Yosprala, which is a fixed- dose combination of aspirin and omeprazole. Most of the revenue in this segment is coming from VIMOVO, in particular, the two royalty streams that we get. One, net sales in the U.S. from Horizon Therapeutics, and the second, rest of world royalty on net sales from our partner, Grünenthal, which is a German multinational specialized in pain. A couple of things to highlight here about this segment. A generic version of VIMOVO did launch in the U.S. in March of 2020. Prior to that point, we were getting a guaranteed minimum annual royalty of $7.5 million every year. Once that generic launched in March, we lost that guaranteed minimum royalty. The royalty is now reverted to a 10% of net sales royalty with certain step-down provisions in the event that the generic achieves a certain market share. Last year, Horizon reported in their public disclosure net sales of VIMOVO of $40 million. We realized a 10% royalty on that. As the generic competitor continues to take market share and erode that business, that royalty value to us will continue to decline. The generic, really towards the second half of 2020, started to accelerate its market share. That royalty that we received last year of around $4 million will certainly decrease this year and into 2022. Won't go to zero, but it won't be where it was historically. Also, something else worth noting, in Q2 of last year, we did receive a CAD 1.8 million milestone payment from Takeda when they launched Cabpirin in Japan. We won't get that milestone payment in 2021. We do get another milestone payment of a comparable value, in May of 2022. I mentioned earlier we signed a recent agreement for Resultz in the United States. We're launching our head lice product through a partner, the Mentholatum Company, which is a large multinational consumer health company. They'll be launching Resultz later this summer, right in time for the traditional head lice season. With the expanding rollout of vaccinations and reduction of COVID-19 pandemic restrictions, we are hopeful that the head lice market comes back in an interesting way this year. Obviously, it requires kids to be going to summer camps and going to school and hanging out together, to facilitate the head lice infestations, which isn't great for parents, but it's great for our business. We'll be watching that with a careful eye, but very excited about this opportunity. The head lice market in the United States, the OTC head lice market, is around $130 million-$140 million a year at retail prices. A few other opportunities. I'd mentioned we had some new international deals that we've entered into. I talked about Pennsaid 2%, the launch in Switzerland. We will earn royalties on net sales as well as revenue on finished product supply. We also launched Resultz in Germany through our partner Heumann last fall. Again, we're earning royalties on net sales and revenue on finished product supply. In December, we announced a licensing deal for Suvexx, our migraine treatment, with Orion Corporation for nine different European markets. Orion is taking that product through registration right now. Hopefully, subject to regulatory approval, we'll be in a position to start earning royalty revenue and finished product supply revenue later in 2022. Just before I hand this over to Mary-Jane to take us through the numbers, I made reference earlier to a transformational transaction that we closed at the end of 2018 and really diversified our business. This is the reason why we have debt on our balance sheet. We funded the acquisition of the Aralez Canada business as well as the VIMOVO, Yosprala, and Suvexx intellectual property and royalty streams through this loan facility. Ultimately, this is a business that I have a fair amount of experience with. Prior to me being with Miravo, I was with a company called Tribute Pharmaceuticals, which ultimately turned into Aralez. Some of our management team as well and board member were also involved in the Tribute business that was sold to POZEN and became Aralez. There's a lot of experience, a lot of familiarity with this particular business and swinging for the fences with the acquisition and taking on this debt was a necessary move on our part, and we're very excited about what this is doing to the financial future, and growth potential for this company. Maybe I'll switch this over to Mary-Jane, and she can take you through our numbers. Thanks, Jesse. As Jesse mentioned, the Aralez acquisition was a transformative transaction for our company. We saw increased scale, increased adjusted total revenue, and increased EBITDA as a result of the transaction. Go to the next slide. If we take a closer look at adjusted total revenue since the close of transaction, we saw a slight year-over-year decline from 2019 to 2020, but really this is a result of varying movements within the three business segments that Jesse previously described. Our Commercial business segment, which contributes about 53% to our top- line, saw a year-over-year increase, mainly driven due to continued growth of Blexten and Cambia, as well as the launch of Suvexx in September of 2020. Our production and service business, which is really the legacy business from our company, saw a year-over-year decline. About 90% of the production sales of this segment relate to Pennsaid 2% sales to Horizon in the U.S. Horizon has continued to deprioritize Pennsaid 2%. As a result, we see a lower contribution from this segment. The Licensing and Royalty business saw a year-over-year decline. This is mainly a result of a generic competitor launching a generic version of VIMOVO in Q1 of 2020 into the U.S. market. Next slide. Despite the slight decline of adjusted total revenue, we saw a year-over-year increase in Adjusted EBITDA. This is mainly a result of a few factors. The first being, in mid-2019, when we learned that the U.S. court had invalidated two patents protecting VIMOVO in the U.S., we restructured our business. We ultimately reemerged as a leaner, more efficient operations, and we carried that disciplined financial management into 2020. 2020 also offered us a few one-time events, one being a CAD 1.2 million grant from the Canadian government for wage subsidies. We also received a one-time milestone from Takeda for $1.8 million. We didn't actually start seeing the erosion of the VIMOVO royalty until the later part of the year. Next slide. If we look at gross profit contribution, all of our segments contribute to our gross profits. The Commercial business segment provides about a 50%-60% gross profit margin. Our Production and Service business provides about a 40%-50% gross profit margin, and our Licensing and Royalty business is 100% gross profit contribution. If we look at the year-over-year increase, this is mainly driven as a result of increased contribution from our Commercial business segment, as well as a change in the accounting methodology for the U.S. VIMOVO royalty from 2019 to 2020. Next. As Jesse mentioned, we financed the Aralez acquisition with debt from a partner called Deerfield. They're a healthcare fund out of the U.S. The initial debt was structured in three loans. A short-term bridge loan, which was repaid just over a year after closing the acquisition. The amortization loan and convertible loan, which remain on our balance sheet at a 3.5% coupon. The amortization loan is repaid $2.5 million quarterly, and the convertible loan has no prepayment terms but will mature on December 31st, 2024. Next slide. Taking a look at our cash and capital structure, we ended the year with just under CAD 24 million of cash on the balance sheet. We have 11.4 million shares outstanding. We do have potential shares associated with the Deerfield financing. That would be 25.6 million warrants at a CAD 3.53 strike price. The convertible loan can convert at Deerfield's option at a $2.70 per share. It is worth noting that per the terms of our finance agreement with Deerfield, they cannot hold more than 5% of our outstanding shares at any time. We closed the trading day on April 15th at $1.50 per share. We look forward to releasing our Q1 financial results on Monday, May the 17th, 2021. Jesse, I'll hand it back to you now. Great. Thanks, Mary-Jane. Just before I open up the floor to some questions, just sort of highlight the investment highlights for you all. Ultimately Miravo is a repositioned company. We are commercial stage, and we are profitable. We've got a number of different areas where we're expanding and growing our business, both organic and inorganic, through the expansion of existing product sales and new product launches, as well as the inorganic growth coming from new business development activity to build out our pipeline and bring in new products that will take the company into the next 10, 15 years. We've got strong financial returns, CAD 71 million in top- line revenue last year, CAD 28.4 million Adjusted EBITDA, a nice cash position on our balance sheet, and really attractive coupon rate on our debt financing, which provides us with a clear path to debt repayment and a manageable way of servicing that debt. All in all, very well- positioned to grow and as we continue to execute on our plans. Maybe with that, I'll stop and take a look at what we've got from a question- and- answer standpoint. We got one minute or so left here. The first question that we have is, what are some of the milestones that we should be looking for throughout the rest of 2021 and 2022? It's a great question, and I think, as I said before, we're not an R&D-focused company. We're a commercial company. Business development is core to our growth aspirations. Over the course of this year, really, we need to be in a position moving forward that every year we're launching one to two new products, whether that's new products coming into Canada or new products being launched in international markets through our partners. In order to do that, we need to have a pretty big pipeline of opportunities that we're going through. For the rest of this year, I would certainly anticipate that we'll be making some announcements on new products that we're bringing into our Commercial segment. New products that we can get registered with Health Canada and launch through our commercial infrastructure, and manage accordingly. Potentially products or business acquisitions as well that are appropriate and right size relative to our capital structure and balance sheet. Internationally, we still have lots of very interesting markets for some of our products and active discussions ongoing in the Middle East, Southeast Asia, Latin America, and certain parts of Europe as well. I think the story for us for this year and next year and sort of for the foreseeable future is business development, new deals, new products, new partners, which all creates incremental contributions to our individual segments and helps create long-term value for everybody else. I think that's about all the time that we have for questions. I think with that, I will close things off. Thank you very much for participating in the presentation today. If you've got any other questions, feel free to reach out to us through our IR site on our website, www.miravohealthcare.com. Thank you very much.
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