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1 JPM Healthcare Conference Presentation January 2025
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2 DisclaimerThis presentation may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Thesestatements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,”“seeks,” “will” and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements containthese words. Forward-looking statements in this presentation include, but are not limited to, statements regarding: information about NeuroPace's market opportunity, growthdrivers and market penetration; commercial strategy; future pipeline; forecasts of market and revenue growth; indication and TAM expansion opportunities; assumptions andexpectations relative to the DIXI Medical partnership; clinical trial timelines; and preliminary financial results. NeuroPace may not actually achieve the plans, intentions orexpectations disclosed in these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in theseforward-looking statements as a result of various factors, including: uncertainties related to market acceptance and adoption of NeuroPace’s RNS System; risks related to thepricing of the RNS System and availability of adequate reimbursement for the procedures to implant the RNS System and for clinicians to provide ongoing care for patientstreated with the RNS System; the risk that NeuroPace may not realize the intended benefits of its partnership with DIXI Medical; risks related to regulatory compliance andexpectations for regulatory approvals to expand the market for NeuroPace’s RNS System; NeuroPace’s reliance on contractors and other third parties, including single-sourcesuppliers and vendors; and other important factors. These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in NeuroPace’s public filings with the U.S. Securities and ExchangeCommission (SEC), including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the SEC on November 12, 2024, as well as any other reportsthat it may file with the SEC in the future. Forward-looking statements contained in this presentation are based on information available to NeuroPace as of the datehereof. NeuroPace undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied uponas representing NeuroPace’s views as of any date subsequent to the date of this presentation and should not be relied upon as a prediction of future events. In light of theforegoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of NeuroPace.
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3 NEUROPACE MISSIONTransform the lives of people suffering from epilepsy by reducing or eliminating the occurrence of debilitating seizures.
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4 >$55B total U.S. addressable market; >$2B annual core market opportunity within Comprehensive Epilepsy Centers with additional upside from expanding outside Level 4 centersLarge, underpenetrated marketClosed loop, brain-responsive neuromodulation systemUnique technologyDifferentiated outcomes that continue to improve over time; additional clinical data underway in Post-approval study (PAS) and in idiopathic generalized, pediatric focal, and LGS populationsCompelling clinical evidenceFocused on revenue, gross margin and operating expense management; 2024 revenue growth 20%+Operating executionSufficient capital to support key operating priorities through 2026Healthy balance sheetMarket expansion outside of Level 4 centers; indication expansion into the generalized epilepsy and pediatric focal patient populationsFuture growth opportunities NeuroPace Investment Highlights 1U.S., Center for Disease Control, August 10, 2017; Chen, Z., et al., JAMA Neurology, 2018; Hauser, et al., 1993. Incidence of Epilepsy and Unprovoked Seizures in Rochester, Minnesota: 1935-1984. Epilepsia 34, 453–458; DEFINITIVE HEALTHCARE CLAIMS DATA, https://patientfinder.defhc.com as of 12/31/20
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5 Joel BeckerChief Executive OfficerMartha Morrell, MDChief Medical OfficerRebecca KuhnChief Financial Officer Kelley NicholasVice President, SalesManagement Team*Previous Experience*Recent additions to leadership team in Research and Development, Marketing and Human Resources
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6 Epilepsy is a disorder in which abnormal electrical activity in the brain causes seizures4thmost common neurological disorder in the U.S.1~$28B direct medical costs in the U.S.12-3X higher unemployment among epilepsy patients21Examining the Economic Impact and Implications of Epilepsy, AJMC, February 13, 2020. 2Epilepsy Across the Spectrum 12.4.26: https://www.ncbi.nlm.nih.gov/books/NBK100603/ 3U.S. Center for Disease Control, August 10, 2017.4Chen, Z., et al., JAMA Neurology, 2017.Drug therapy is unable to control seizures for 1 in 3 patients3,4 Drug-Resistant Epilepsy (DRE) is a Devastating, Highly Undertreated Disease with Significant Unmet Need
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7 1U.S. Center for Disease Control, August 10, 2017.2Chen, Z., et al., JAMA Neurology, 2018. 3Jehi L, Jette N, Kwon C-S, Josephson CB, Burneo JG, Cendes F, Timing of referral to evaluate for epilepsy surgery: Expert Consensus Recommendations from the Surgical Therapies Commission of the International League Against Epilepsy. Epilepsia. 2022;00:1–16. https:// doi.org/10.1111/epi.17350. U.S. Prevalence: 1/3 of Epilepsy Patients are Drug RefractoryDrug-resistant epilepsy (DRE) defined as a patient failing to achieve sustained seizure freedom after trying two antiseizure medications3DIAGNOSIS & FIRST LINE TREATMENT 3.4M People in the U.S.11.2M People in the U.S.2 Patients diagnosed with epilepsyTry multiple anti-epilepsy drugs~1 in 3 have drug-resistant epilepsy (DRE) DRE patients who may not appear to be appropriate candidates for epilepsy surgery should still be referred to a tertiary epilepsy center to evaluate potential other interventions3
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8 RNS System - Novel Therapy to Address Unmet NeedBrain-Responsive Neuromodulation System Provides Unique Window to the Brain Physician ProgrammerPatient Remote MonitorPatient Data Management SystemImplantable Device with nearly 11-year batteryMonitorsBrain activity continuouslyRecognizes &RespondsTo patient-specific seizure patternsRecordsOngoing iEEG data for physicians to reviewEpilepsy Treatment that is•Personalized•Targeted •Data-driven
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9 RNS System DataAllows Physicians to Actively Manage and Customize Ongoing Patient Care Electrographic seizuresIdentify Seizure Triggers Therapy changeMonitor Patient ProgressSee Effects of Therapy ChangesReveal Seizure CyclesInform Future Surgeries
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10 Impressive Seizure Reductions Improve Over Time 1Morrell, M, et al. Neurology, 2011.2Nair, D, et al., Neurology, 2020 and Heck et al., Epilepsia , 2014. 3Szaflarski, JP, et al., Presented at American Epilepsy Society, 2019. 4Razavi, B, et al., Epilepsia, 2020.44%53%58%62%63%67%72%73%75%67%75%82%Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9Median % Reduction in SeizuresOriginal FDA Study Results:1,2•Statistically greater seizure reduction than sham therapy at 5 months•75% median seizure reduction at 9 years•28% of patients achieved > 6 months of seizure freedomReal World & FDA Post Approval Study Results:•67% median seizure reduction at 1 year3,4•75% median seizure reduction @ 2 years4•82% median seizure reduction at 3+ years4•~1 in 3 patients with > 90% reduction in seizures467%75%82%Improvements shown in: Cognitive Function |Quality of Life| Mental Health | SUDEPPAS 3-year follow-up data submitted to FDA
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11 ResectionLaser AblationIrreversible destructive procedureCarries neurocognitive risks: impaired memory, reduced naming ability, and loss of some part of their visual field~20% of patients are ideal candidates1 Alternative Treatment Options Have Significant Risks and Side Effects 1Schiltz, et al., Temporal trends in pre-surgical evaluations and epilepsy surgery in the U.S. from 1998 to 2009, Epilepsy Research, Volume 103, Issues 2–3,2013,Pages 270-278; Dugan, et al., Derivation and initial validation of a surgical grading scale for the preliminary evaluation of adult patients with drug‐resistant focal epilepsy. Epilepsia, (2017) 58: 792-800. DBSVNS Fixed anatomical target Not responsive to brain activityLengthy stimulation cycles result in side effects: depression, memory impairment, and sleep disruptionNo detailed iEEG recordings or event trending Therapy at seizure source only when neededResponds to patient specific abnormal eventsNo stimulation related side effectsReduced risk of SUDEPDetailed iEEG recordings and event trending Neuromodulation CompetitorsEpilepsy SurgeryRNS Therapy
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12 Closing the Treatment GapCEC Growth Opportunity 1Chen, Z., et al., JAMA Neurology, 2017. 2Definitive Healthcare Claims Database for Epilepsy Patients who received Inpatient VEEG in 2019 3Ostendorf, et al, Epilepsia, 2022 4Jehi L, Jette N, Kwon C-S, Josephson CB, Burneo JG, Cendes F, Timing of referral to evaluate for epilepsy surgery: Expert Consensus Recommendations from the Surgical Therapies Commission of the International League Against Epilepsy. Epilepsia. 2022;00:1–16. https:// doi.org/10.1111/epi.1735050K DRE patients admitted to CECs annually2>$2Baddressable market today with potential to increase as more patients are moved through specialist careMACRO TRENDS•Number of CECs increased from 151 in 2012 to 256 in 20193•150% increase in number of epileptologists per capita from 2012 to 20193•Epilepsy monitoring unit (EMU) admissions increased 5% per year from 2016 to 20193•Patient advocacy groups advocating for increased care•ILAE treatment recommendations for DRE encourage more/earlier evaluation of interventional treatment4•Improved diagnostics and therapies lowering barriers for patients 1.2M people living with DRE in the US1
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13 Current Patient Population Focus 1Chen, Z., et al., JAMA Neurology, 2017. 2Definitive Healthcare Claims Database for Epilepsy Patients who received Inpatient VEEG in 2019.3Ostendorf, et al, Neurology, 2022.50K DRE patients admitted to Comprehensive Epilepsy Centers annually26.5K DRE patients get treatment beyond drugs annually3Significant Opportunity Exists to Close the Treatment Gap!1.2M people living with DRE in the US1
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14 ~40%~12%~48%05101520253035404550Thousands~50K New DRE Patients Admitted to CECs Annually~40%~60%05101520253035404550ThousandsAnnual Core U.S. Market Opportunity at CECs >$2 Billion 1Definitive Healthcare Claims Database for Epilepsy Patients who received Inpatient VEEG in 2019. 2Includes adolescent patients, age <18. 3Hauser, et al., 1993. Incidence of Epilepsy and Unprovoked Seizures in Rochester, Minnesota: 1935-1984. Epilepsia 34, 453–458.$1.4B Annual U.S. Core MarketExcluding replacement implants2 $900M Annual Potential U.S. Core Market Expansion3NAUTILUS: Completed implanting patientsLGS: Completed implanting patients 1~50K New DRE Patients Admitted to CECs Annually130K Focal20KGeneralized
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15 Closing the Epilepsy Treatment Gap Through Expanded Therapy AccessExpanded PatientEligibilityIncreased TherapyAvailabilityExpanded Therapy UtilizationIncrease Availability in Health Care Systems Near Patients (outside of CECs)Broaden the Indications of Patients Eligible for the RNS System Educate and Support Clinicians and Patients to Empower Them in Their Treatment Journey
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16 Expanded Therapy Utilization: Strategies for Focal, Refractory EpilepsyRNS® System Enables Diverse Treatment ApproachesBilateral & suspected bilateral MTLDominant unilateral MTLEloquent cortexDeep structuresRegional neocortical stimulationCorticothalamic stimulationNETWORK STIMULATIONFor regional onsetsTARGETED STIMULATIONFor discrete onsetsTHERAPY COMBINATIONSTo augment surgeryLarge focal networksMultifocal onsets
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17 Market Expansion: Project CARE – Bringing the RNS System into the CommunityCommunity Expansion –Making the RNS System Accessible to Patients and Clinicians outside of Level 4 CECs•Expanding to additional 1,800 epileptologists and all functional neurosurgeons practicing outside of Level 4 CECs•Significant expansion of RNS System TAM•Palpable interest: patients implanted in community before official pilot launchExpanding RNS System Access to Patients Outside of Level 4 CECsFacilitating Referrals of Appropriate Patients to Level 4 CECsProject CARE Timeline•2024: Pilot Activities•2025: Program Expansion
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18 Indication Expansion: Generalized Epilepsy Generalized Epilepsy Clinical Trials•NAUTILUSoBreakthrough Device Designation statusoEnrollment and implants complete oOne-year follow-up to be complete in March 2025•Lennox-Gastaut Syndrome (LGS) oNIH-fundedoEnrollment and implants completePatient Eligibility Indication Expansion – RNS System indication for Generalized Epilepsy•40% of DRE market•Shorter diagnostic process•Shorter time from patient identification to implant20232024-20252025-2026
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19 Closing the Treatment Gap: Enhanced RNS Therapy AccessCommunity Expansion: RNS System Access outside of Level 4 Comprehensive Epilepsy Centers / building referral pathways 2023 2024-20252025-2026CECs: Focus on Adoption Across Clinicians and Expanded Therapy Utilization by current prescribersPatient Indication Expansion: RNS Access for Generalized Epilepsy •Build on encouraging initial implant growth•Network stimulation•Clinical evidence•Expansion to additional +1,800 Epileptologists and all functionalneurosurgeons within current indications•Significant expansion RNS TAM•H1 2024: Site Initiation / H2 2024: Site Expansion•Enrollment completed – Q4 2023•Planned Implant follow up completion – H1 2025•40% of DRE Patients
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20 Closing the Treatment Gap: Enhanced RNS Therapy AccessCommunity Expansion: RNS System Access outside of Level 4 CECs / building referral pathways2023 2024-20252025-2026CECs: Focus on Adoption Across Clinicians and Expanded Therapy Utilization by current prescribersPatient Indication Expansion: RNS Access for Generalized Epilepsy •Build on encouraging initial implant growth•Network stimulation•Clinical evidence•Expansion to additional 1,800 Epileptologists and all functionalneurosurgeons within current indications•Significant expansion of RNS TAM•2024: Pilot Activities / 2025: Program Expansion•Enrollment completed – Q4 2023•Planned Implant follow up completion – H1 2025•40% of DRE Patients
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21 Closing the Treatment Gap: Enhanced RNS Therapy AccessCommunity Expansion: RNS System Access outside of Level 4 CECs / building referral pathways 2023 2024-20252025-2026CECs: Focus on Adoption Across Clinicians and Expanded Therapy Utilization by current prescribersPatient Indication Expansion: RNS System Access for Generalized Epilepsy •Build on encouraging initial implant growth•Network stimulation•Clinical evidence•Expansion to additional 1,800 Epileptologists and all functionalneurosurgeons within current indications•Significant expansion of RNS TAM•2024: Pilot Activities / 2025: Program Expansion•Completed enrollment and implants in NAUTILUS and LGS trials•Submission after 1-year post-implant follow up•40% of DRE patients•Potential to be first device in U.S. with generalized indication
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22 Leveraging the Power of the RNS System’s Data Collection, Brain Monitoring and Analysis CapabilitiesFirst of its kind collaboration:initial step into extending the benefits of NeuroPace’s unique data monitoring and analysis capabilities to more patients and physicians:•Collaboration uses data collected from currently implanted RNS System patients who enroll in a clinical-stage biotechnology company’s proof of concept, Phase 2a, clinical trial.•NeuroPace provides information and insights to help evaluate the impact of an investigational product candidate on certain biomarkers associated with focal seizures.Strategic Collaboration Demonstrates NeuroPace’s Data Offers a Window to the Brain®and May Help Inform Treatment StrategiesKey objective: Leverage NeuroPace’s unique ability to monitor, sense, record brain activity and treat patients to provide value to more patients by offering insights into potential future therapies and helping further refine how patients implanted with the RNS System can be optimally treated.
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23 DIXI Partnership OffersComprehensive Solution for Seizure LocalizationFocal SeizuresStart in specific locations of the brainStereo EEG electrodes are used in CECs for seizure localization•Determine starting location and transmission network of seizures•Stereo EEG is less invasive, offers faster patient recovery, and has become the predominate approach for intracranial monitoring ACS-770S-10
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24 Distribution of DIXI Stereo EEG Products Leads to Earlier Patient Engagement•~2/3 of RNS patients go through intracranial EEG monitoring as part of the diagnostic process•Most patients that have stereo EEG procedure are not currently getting RNS Therapy – growth potential•Typically 2-3 months from stereo EEG procedure to RNS implant•Same account and physician call point - neurosurgeons and epileptologists at CECs•Most NeuroPace RNS implanting centers are not currently using DIXI electrodes – growth potential•Intracranial monitoring market in the United States is estimated to be between $25 million to $40 millionAccelerates core RNS business by helping to inform therapy decisions earlierProvides visibility into diagnostic evaluation pipelineAdditional revenue source leveraging existing field team
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25 Closing the Treatment Gap to Drive Long-Term GrowthExpand the number of prescribersDirect-to-patient digital marketingReferral marketing to epileptologists Community outreach and patient educationEarlier patient education to increase pull throughBroaden patient selectionBroaden RNS adoption through CECsIndication and Market expansion: Generalized and Community Awareness & Demand GenerationGrow the MarketTake Share within CECsCommercialExecution
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26 4Q23 1Q24 2Q24 3Q24 4Q24 Financial PerformanceTotal Cash Balance of approximately $52.8M (as of 12/31/2024) provides sufficient capital to support key operating priorities (in millions)Preliminary FY2024(unaudited)Preliminary 4Q24(unaudited)$79.4M - $79.9M*21% - 22%$21.0M - $21.5M17% - 19%RevenueRevenue growth (y/y)$19.3$21.1$18.1$18.0*initial 2024 revenue guidance: $73M - $77M$21.0 - $21.5
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27 Summary Positioned for growth and focused on revenue, operating discipline, and effective cash managementPrioritizing utilization and adoption of the RNS System across existing and new cliniciansIndication expansion efforts into IGE on track with NAUTILUS pivotal trial enrollment and implants completeProject CARE to expand access to the RNS System outside of Level 4 centersTransforming the lives of people suffering from epilepsy by reducing or eliminating the occurrence of debilitating seizures
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