alliqua investor presentation alqa
TRANSCRIPT
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7/28/2019 Alliqua Investor Presentation ALQA
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Investor Presentation
February 2015 Nasdaq: ALQA
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This presentation contains forward-looking statements. Forward-looking statements are
generally identifiable by the use of words like "may," "will," "should," "could," "expect,"
"anticipate," "estimate," "believe," "intend," or "project" or the negative of these words orother variations on these words or comparable terminology. The reader is cautioned not to
put undue reliance on these forward-looking statements, as these statements are subject to
numerous factors and uncertainties outside of our control that can make such statements
untrue, including, but not limited to, the adequacy of the Companys liquidity to pursue its
complete business objectives; inadequate capital; the Companys ability to obtain
reimbursement from third party payers for its products; loss or retirement of key executives;
adverse economic conditions or intense competition; loss of a key customer or supplier; entryof new competitors and products; adverse federal, state and local government regulation;
technological obsolescence of the Companys products; technical problems with the
Companys research and products; the Companys ability to expand its business through
strategic acquisitions; the Companys ability to integrate acquisitions and related businesses;
price increases for supplies and components; and the inability to carry out research,
development and commercialization plans. In addition, other factors that could cause actual
results to differ materially are discussed in our Annual Report on Form 10-K filed with the SECon February 24, 2015 and our most recent Form 10-Q filings with the SEC. Investors and
security holders are urged to read these documents free of charge on the SEC's web site at
www.sec.gov. We undertake no obligation to publicly update or revise our forward-looking
statements as a result of new information, future events or otherwise.
Forward-Looking Statement Disclaimer
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Alliqua BioMedical: Corporate Vision
To build a suite of advanced wound care
solutions that will enable surgeons, clinicians &
wound care practitioners to address the entirespectrum of challenges presented by chronic
and acute wounds
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MAY 2010 HepaLife Technologies (OTCBB: HPLF) acquires AquaMed Technologies, Inc.
DEC. 2010 Company renamed Alliqua, Inc.
MAY 2012New Chairman of the Board: D R . J E R R Y Z E L D I S - Chief Medical Officer of Celgene
Corporation since 1997
FEB. 2013 New Chief Executive Officer: D A V I D J O H N S O N - Former CEO of ConvaTec
MAR. 2013 Refocused company on building a diversified wound care portfolio
SEPT. 2013 Announced commercial rights to sorbion product in the Americas
NOV. 2013 Announced licensing agreement with Celgene Cellular Therapeutics
JAN. 2014 Uplisted to NASDAQ exchange
MAY 2014 Announced definitive agreement to acquire Choice Therapeutics
JAN. 2015Expanded sell-side coverage of ALQA to a total of five research firms: Alere Financial, Craig-Hallum
Capital Group, H.C. Wainwright & Co., Laidlaw & Company, & Northland Securities
FEB. 2015 Announced definitive agreement to acquire Celleration, Inc.
Alliqua BioMedical: Brief Corporate History
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Why Advanced Wound Care?Large & Growing Global Market
U.S. represents more than half of the
Global market
U.S. market highly fragmented
*Source: CDC.gov, Wound Healing Society, Journal of Wound Repair and Regeneration
(Vol. 17, Issue 6) & Alliqua management estimates
CHRONIC WOUNDS
(5.1+ MILLION)
Diabetic Foot Ulcers(5 15% of all diabetics =
~2.0M)
Pressure Ulcers(~2.5M in acute care
facilities alone)
Venous Leg Ulcers(~600,000)
Arterial Ulcers(~10% of all leg ulcers)
ACUTE WOUNDS(770,000+)
Burn Wounds(~120K in-patient & ~650K
out-patient)
Trauma Wounds(~2.5M trauma hospital
admissions per year)
Surgical Wounds(~29M surgical procedures
per year)
U.S. Annual Wound Incidence*
~5 Large,
Diversified
Companies
50%
~100+
Private &
Micro-Cap
Companies50%
U.S. Wound Care Market Share(Illustrative)
Growth in wound incidence
expected due to demographic
trends in diabetes and obesity
Large and growing patient population
Global Advanced Wound Care Market
Estimated at $8+ Billion*
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Why Advanced Wound Care?Clinical Need & Compelling Market Dynamics
Clear clinical need for advanced wound care
therapies
Shift from conventional to sophisticated wound care
products
Skin & skin substitutes sub-segment underpenetrated
(represents just ~5% of the global advanced wound care
market today*) Better/faster wound healing = Lower overall
treatment costs
Reduced hospitalization times, incidence of HAIs,
retreatment rates and risk of amputation
Multi-clinician user base
Surgeons, nurses and wound care specialists
Multi-channel customer base
Hospitals, ASCs, burn centers, wound care centers and
trauma centers
*Source: CDC.gov, Wound Healing Society, Journal of Wound Repair and
Regeneration (Vol. 17, Issue 6) & Alliqua management estimates
Venous leg ulcer
Pressure ulcers
Diabetic foot ulcer
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2012
Revenue
$1.2M
What Did Alliqua Look Like in Early 2013?
Unique Hydrogel Wound Care Products
FDA Cleared
Fully Reimbursed
Contract Manufacturing Business
Unique Electron Beam Hydrogels
Medical Device Customers
NoRevenue
SilverSeal
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Alliqua BioMedical: Growth StrategyPhase One: Develop the Platform
1. Build an experienced management team
2. Access new sources of financing to support growth
initiatives
3. Create an integrated portfolio of wound care
technologies though acquisitions, licensing and
distribution agreements
4. Establish a world-class sales and distribution
infrastructure
Initiated Phase One of Growth Strategy in Q213 with Four Objectives:
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Alliqua BioMedical: Growth StrategyPhase One Objective #1: Build an Experienced Management Team
Name Title Previous Employers
Brian Posner Chief Financial Officer
Brad Barton Chief Operating Officer
Lori Toner Chief Marketing Officer
Janice Smiell, M.D. Chief Medical Officer
Gregory Robb VP of Operations
President of ConvaTec Americas
Chief Financial Officer
VP of Global Marketing
VP of Medical Affairs
Exec. Director of Global Clinical R&D
Senior Director of Global Clinical R&D
VP of Operations
100+ Years of Combined Wound Care Experience
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APR. 14 Raised gross proceeds of $20.3M
-$5.3M from warrants and $15M from sale of common stock
-Major investors: Celgene, Broadfin, Perceptive Advisors & J. Goldman
NOV. 13 Raised gross proceeds of $13M
-$6M from Celgene
-$7M from major healthcare investors including Broadfin and Perceptive Advisors
NOV. 13 Raised $1M from Crossover Healthcare Fund
APR. - JUN. 13 Raised $3M led by Mgmt. and Directors
Alliqua BioMedical: Growth StrategyPhase One Objective #2:Access New Sources of Financing to Support Growth Plan
$37M Raised Since Beginning of 2013
December 31, December 31,
2014 2013
Cash & Cash Equivalents $16,770,879 $12,100,544Current Assets $19,629,067 $12,847,234
Total Assets: $29,723,724 $17,451,568
Current Liabilities $4,129,824 $3,353,464
Total Debt $0 $0
Total Liabilities: *$7,212,493 $3,498,876
Total Stockholders Equity $22,511,231 $13,952,696
*Includes contingent consideration liability of $2.9M related to Choice Therapeutics acquisition
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Alliqua BioMedical: Building the PortfolioPhase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies
Unique differentiated
Risk Adjusted regulatory & reimbursement
Clinically efficacious
Economic value proposition
Strong margin profile
The Criteria
Wound bed preparation
Exudate management
Anti-microbial technologies
Regenerative medicine
Targeting
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Alliqua BioMedical: Building the PortfolioPhase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies
DISTRIBUTION
PARTNERSHIPS
LICENSING
AGREEMENTS
TARGETED
ACQUISITIONS
November, 2013 May, 2014September, 2013
Licensing, marketing,
development and
supply agreement
with CCT, the
placental tissue &
stem cell R&D division
of Celgene
Acquired wound care
portfolio, technology
platform, and sales
and marketing team
Long-term, exclusive
agreement to
distribute sorbion-
branded products in
the Americas
Dermal Repair
ScaffoldBIOVANCEsorbion SanaSorbion Sachet STheraBond 3D
Acquiring new
reimbursed
technology platform,
and sales and
reimbursement
resources
February, 2015*
MIST Therapy UltraMIST
*Acquisition announced February 2, 2015; anticipated close by June 30, 2015
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Celleration Acquisition: MIST Therapy and UltraMISTPhase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies
Use low frequency ultrasound waves to stimulate the cells below the
wound bed surface, a region that was previously inaccessible to wound
care practitioners
Accelerates healing and wound closure
Reduces wound inflammation and bacteria/bioburden
Increases blood flow to the afflicted area
FDA 510(k) cleared; CE Mark
The only known noncontact, low-frequency, ultrasound devices cleared by theFDA with an indication to promote wound healing
Reimbursed by CMS
Covered in 5 of 8 Medicare administrative contractors representing 44 states
Hospital (APC) payment rate increasing from $83.73 to $146.08 in 2015
Reimbursed on physician schedule at a rate of $123.16 beginning in 2015
Strong clinical support
5 randomized controlled trials, 10 other prospective or retrospective studies, 25
case series and 1 meta-analysis with nearly 450 subjects
Commercial traction
$8.7 million of sales in fiscal year 2014
MIST Therapy System
UltraMIST System
UltraMIST Applicator
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A Strong, Comprehensive and Unique PortfolioPhase One Objective #3: Create an Integrated Portfolio of Wound Care Technologies
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Alliqua BioMedical: Regulatory & ReimbursementDe-Risking the Business Model
Product FDA Clearance Medicare Reimbursement
Hydress n/a HCPCS A Code Hydrogel Dressing
SilverSeal 510(k) HCPCS A Code Hydrogel Dressing
sorbion Products n/a HCPCS A Code Alginate Dressing
TheraBond 3D 510(k) HCPCS A Code Contact Layer
BIOVANCE PHS 361 product*Received HCPCS Q Code (Q4154) in Nov. 14;
HCPCS Q Code went into effect on Jan. 1, 2015
MIST TherapySystem 510(k)
AMA approved a CPT I code, 97610, effective Jan14 Low-frequency, noncontact, nonthermal ultrasound,
including topical application(s), when performed, wound
assessment, and instruction(s) for ongoing care, per day.
Coverage by 5/8 MACs (44 states)
*commercially available under Section 361 of the Public Health Service Act, which allows minimally manipulated human cells,tissues, and cellularand tissue-based products (HCT/Ps) to be marketed in the United States (U.S.) without pre- market FDA approval (also called a 361 product)
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Alliqua BioMedical: Commercial StrategyPhase One Objective #4: Establish a World-Class Sales and Distribution Infrastructure
25 direct sales representatives as of 12/31/14
Celleration acquisition* will add 19 additional sales personnel
42 indirect sales force representatives
National Distribution Partners:
Product supply group purchasing agreements (GPO contracts):
MedAssets (awarded August 2014)
Premier (awarded December 2014)
*Acquisition announced February 2, 2015; anticipated close by June 30, 2015
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$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
2012 2013 2014 2015
Contract Manufacturing ALQA Proprietary Products Revenue*
Revenue Growth Trends ImprovingStrong Growth of Proprietary Products in 2014; FY15 Guidance Implies Continuation of Trends
*Proprietary products revenue includes contributions from the Choice Therapeutics acquisition of $323,000, $577,000 and $596,000 inQ214, Q314 and Q414, respectively. FY15 includes mid-point of Celleration 2H15 guidance ($4.75M) and assumes a June 30th
closing date.
Revenue growth of proprietary products in 2014 driven by the combination of:
Increasing sales force productivity following investment in March Ramp in sales of sorbion products & Launch of BIOVANCE in April
Acquisition of Choice Therapeutics in May
Mid-Point
of 2015
Guidance*
In Q414, revenue from proprietary products accounted for 81% of total
revenue, compared to 23% of revenue in Q413
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Focus Area Summary of Progress
Management &
Board Leadership
New Chief Executive Officer, Chief Financial Officer, Chief Operating Officer,
Chief Medical Officer & Chief Marketing Officer
New Board members: Perry Karsen, Andrew Africk and Gary Restani
Financing Raised gross proceeds of $37M
Cash balance improves to $16.8M at end-Q414 from $28K at end-Q113
Product Portfolio
Launched BIOVANCE
Acquired Choice Therapeutics TheraBond 3D
Celgene Licensing Agreement BIOVANCE & Dermal Repair Scaffold
o Expanded to Orthopedic and Podiatric Applications
sorbion Distribution Agreement sachet S & sana
Sales Distribution
and Infrastructure
Created direct sales force (25 total reps at end-Q214)
42 indirect sales force representatives
6 partnerships with national distributors
GPO contract with MedAssets & Premier
Revenue
Performance(12-Months ended Q414)
Total revenue increased 166% Y/Y to $4,786,131
Proprietary products revenue increased 1,577% Y/Y to $3,003,521
Alliqua BioMedical: Growth StrategyPhase One: Summary of Progress ToDate (Q213 to Q414)
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Drive revenue growth with current product portfolio through: Improving sales force productivity,
Further penetration of the advanced wound care market, and
New GPO contracts
Complete acquisition of Celleration by June 30th, 2015 and integrate
Pursue reimbursement coverage for BIOVANCE from Medicare
Reimbursement Contractors (MACs)
Expand advanced wound care product portfolio by leveraging the
development pipelines of our strategic partners and opportunistically
pursuing additional platforms
Alliqua BioMedical: Growth StrategyPhase Two: Continue to Expand and Leverage the Platform to Drive Performance
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Nasdaq: ALQA
Alliqua BioMedical, Inc.
2150 Cabot Blvd West
Langhorne, PA 19047
(215) 702-8550