Slides
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Updated strategic and financial targets Christine Lind, CEO Patrick Bach, CFO 6 March 2025
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2 Q&A established license partnerships with global MedTech giants potential in future license partnerships across therapeutic areas The new Bactiguard in brief “become global standard of care for preventing medical device related infections” advanced technology to prevent medical device related infections
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The issue of healthcare associated infections • 1 in 10 patients worldwide affected by healthcare associated infections (HAI)1 • 40-60% of all HAIs caused by medical devices2 • Up to 50% of HAIs estimated to be preventable3 • Costs associated with HAIs (ie extended hospital stays and additional treatment) can be significantly reduced through proactive infection prevention strategies 4 • WHO: Proactive infection prevention is cost-effective, offering both financial and health benefits over treatment5 1. Global report on infection prevention and control: executive summary. Geneva: World Health Organization; 2022. 2. DiBiase, L. M. et al. (2014. Infection Control & Hospital Epidemiology, 35(2), 200–202. https://doi.org/10.1086/674847 3. https://www.ecdc.europa.eu/en/healthcare-associated-infections 4. ECDC. Economic evaluations of interventions to prevent healthcare -associated infections. Stockholm: ECDC; 2017. 5. Global report on infection prevention and control. Geneva: World Health Organization; 2022. Licence: CC BY-NC-SA 3.0 IGO. 3
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Full-year 2024 key figures and achievements License focused strategy delivered increased revenues and profitability Key figures for 2024 (2023) Revenues 261.9 (223.2) MSEK EBITDA 18.0 (-76.1) MSEK Net loss 29.8 (138.4) MSEK CF from operating activities 25.0 (-52.3) MSEK The new Bactiguard • Delivered on strategic shift – license focus • Increased revenues and EBITDA profitability • Positive Cash flow (from Operating activities) • Knowledge and specialist organization • Wound management product portfolio delivered profitable growth 4
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REVIEW AND OUTCOME – TARGETS AND THERAPEUTIC AREAS
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A data driven approach to shape our long-range plan 6 Market review Review of external data sources incl. +15 therapeutic areas, +100 clinical studies and +1000 product classifications Leveraging internal data from decades of research and testing to identify high-potential and adjacent opportunities Prioritization based on medical needs, market size, technology fit, partner and competitive landscape Process review Analysis of approval timelines across therapeutic areas and medical classes Review and assessment of internal data and knowledge on regulatory timelines and pathways Scoping of milestones and phases from early stage testing to commercial launch Modeling Dynamic, granular financial modelling of potential new application areas Detailed assessment of underlying and expected growth from existing business Thorough assessment and scenario building of input variables such as scale-up rates, maturity and churn
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Updated strategic and financial targets Scalability and operational leverage of business model increases over time 7 >10 >200 >600 At least ten application areas in either exclusivity or license partnership by year-end 2030 EBITDA of at least SEK 200 million by year-end 2030 Revenues of at least SEK 600 million by year-end 2030 Partnership development EBITDA Revenues
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Focus therapeutic areas for the license business Areas with high unmet medical needs 8 Orthopedics: Primary - Masters et al. (2013), Acuña et al. (2021); Revisions - Gold et al. (2019), Patel et al. (2023) ; Trauma – Norris et al. (2019), Li et al. (2024) ; Mortality – Fischbacher & Borens (2019), Villa et al. (2024), Mundi et al. (2024). Vasculary access: based on Rosenthal et al. (2023) and Alshahran et al. (2023); Mortality – Toor et al. (2022) and Yu et al. (2023). Cardiovascular : CIED - Greenspon et al. (2011); Wilkoff et al. (2020), Solail Henrikson et al. (2011); Structural Heart : Mehra, Goldstein et al. (2022) : Tong et al. (2015), Topkara et al. (2010), Neurology: Modulators, Infections - SCS : Bendel et al. (2017) ; PNS : Ishizuka et al. (2007) ; DBS : Oh et al. (2002) ; VNS : (Hasegawa et al., 2021) ; Shunts, Infections – Sagun Tuli et al. (2004); *Mortality related to shunts – Ivan Pelegrin et al. (2017). Urology: CAUTI - Estimated based on CDC and clinical literature including Lo et al. 2014. Mortality: Estimated based on CDC and clinical literature including Tambyah et al. 2000. Orthopedics Vascular access Cardiology Neurology Urology Indicative infection rates Indicative mortality rates Addressable market Application areas (examples) Hip Implants Knee Implants Trauma Implants Primary 1-5% Revisions 8-22% Fracture related 5-40% 3-11% USD 39bn Central Venous Catheter Peripherally Inserted Central Catheter Midline Catheter CLABSI 2-10% (>2 days) 12-31% USD 11bn Ventricular Assisted Device Pacemaker CIED 1-7% Structural heart 19-39% CIED 3-5% Structural heart 5-10% USD 10bn Deep Brain Stimulator Vagus Nerve Stimulator Peripheral Nerve Stimulator Modulators: 1-15% Shunts: 5-13% 10-12%* USD 9bn Foley Catheter CAUTI 9-21% (>2 days) 1-4% USD 5bn
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Go-to-market – indicative timelines From early-stage testing to commercialization takes several years 9 Average 5 yearsMedical devices Class II Average 7 yearsMedical devices Class III Collaboration within • Basic feasibility and performance tests • Process/product development • Clinical studies and outcome • Regulatory requirements • Supply chain matters • Commercial scale-up
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Wound Management’s contribution to financial targets Continued profitable double-digit growth and from existing and expansion into new markets 2021 2022 2023 2024 2025 2026 2029 2030 41 44 54 61 2027 2028 +14% 10
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Financial profile develops favorably over time Double-digit growth and margin expansion driven by existing business towards 2030 262 MSEK 2024 2030 >600 MSEK 1/3 2/3 Existing business New partnerships • Grow by focusing on select application areas in strategic therapeutic areas with the highest potential • Ensure growth initiatives are underpinned by a disciplined financial strategy to consistently deliver EBITDA profitability • By 2030, two thirds of revenues are driven by existing partners/business, and one third from new partnerships Projected revenues from existing business and new partnerships 11
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• Business model’s inherent operating leverage drives substantial EBITDA expansion, especially from royalties as new application areas mature • Significant operational leverage and scale comes in the second phase after the 2030 target period with new business potential Business model enables significant operational leverage Significant scale beyond 2030 as royalties from new application areas mature 2/3 1/3 2030 1/4 3/4 Beyond Existing business New partnerships Illustrative revenues from existing business and new partnerships 12
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STATUS TODAY AND FRAMEWORK AHEAD
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Announcing progress across partnership phases Exclusivity partnerships and License partnerships announced with partner name 14 Orthopedics Vascular access Cardiology Neurology Urology Other Material transfer agreement Application development partnership Exclusivity partnership License partnership
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The new Bactiguard – strategic focus areas and priorities Be the premier partner for leading MedTech companies License partnerships R&D Medical Regulatory Wound Management portfolio Advance current and develop new partnerships Invest further in above key knowledge areas Grow profitably and expand into new markets 15
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Today’s presentation in summary Key takeaways • Rigorous approach to define the long-range plan • Strategic therapeutic areas: Orthopedics, Vascular Access, Cardiology, Neurology and Urology • From early-stage testing to commercialization takes several years • Financial profile develops favorably over time • Business model with significant operational leverage and scale • Wound Management continued profitable growth included in financial targets 16 Strategic and financial targets Partnership development Have at least ten application areas in either exclusivity partnership or license partnership by year-end 2030 Revenues Deliver revenues of at least SEK 600 million by year-end 2030 EBITDA Deliver an EBITDA of at least SEK 200 million by year-end 2030
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Q&A to champion a healthier world by preventing infections