anteo diagnostics agm presentation / diasource

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

Anteo Diagnostics Limited (ASX:ADO) Annual General Meeting

9 November 2015


Meeting Format

1. Introductions

2. Formal Resolutions

3. CEO Report

4. Other Business

5. Meeting Close

2


Sandra Andersen,

Non-Executive

Director

Dr John Hurrell,

Non-Executive

Director

M

Richard Martin,

Executive

Director and CFO

M

Dr Geoff

Cumming, CEO

Mark Bouris,

Non-Executive

Chairman

Introductions

3

Anteo Diagnostics Limited – Directors in attendance

Grant Thornton – Auditor in attendance

• Matthew Bell – Partner


Formal Resolutions

4

Resolution Description

Resolution 1: Adoption of Directors’ Remuneration Report

Resolution 2: Re- Election of Director (Ms Sandra Andersen)

Resolution 3: Approval of 10% Placement Capacity

Resolution 4: Ratification of Share Issue

Resolution 5: Approval of Issue of shares under Share Purchase

Agreement with DIAsource Immunoassays SA


Resolutions: Proxy Count

5

Resolution Description For Against Open Excluded Abstain Totals

Resolution

1:

Adoption of Directors’

Remuneration Report

203,796,011 9,282,883 0 0 670,428 213,749,322

Resolution

2:

Re- Election of

Director (Ms Sandra

Andersen)

188,360,235 10,549,144 13,928,515 0 911,428 213,749,322

Resolution

3:

Approval of 10%

Placement Capacity

174,119,105 21,643,870 13,853,515 0 4,132,832 213,749,322

Resolution

4:

Ratification of Share

Issue 161,986,244 9,440,269 13,853,515 23,761,112 4,708,182 213,749,322

Resolution

5:

Approval of Issue of

shares under Share

Purchase Agreement

with DIAsource

Immunoassays SA

187,957,611 7,226,714 13,852,115 0 4,712,882 213,749,322


CEO Update: the year in review

6


Forward Looking Statement

The purpose of the presentation is to provide an update of the business of Anteo Diagnostics (ASX:ADO). These slides have been prepared as a presentation aid only and the information they contain may require further explanation and/or clarification. Accordingly, these slides and the information they contain should be read in conjunction with past and future announcements made by Anteo and should not be relied upon as an independent source of information. Please contact Anteo and/or refer to the Company's website for further information.

The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information.

Any forward looking statements in this presentation have been prepared on the basis of a number of assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about future events are subject to risks, uncertainties and other factors, many of which are outside Anteo Diagnostics Ltd’s control. Important factors that could cause actual results to differ materially from assumptions or expectations expressed or implied in this presentation include known and unknown risks. Because actual results could differ materially to assumptions made and Anteo’s current intentions, plans, expectations and beliefs about the future, you are urged to view all forward looking statements contained in this presentation with caution.

This presentation should not be relied on as a recommendation or forecast by Anteo Diagnostics Limited. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.


Investment Highlights

8

• Anteo Diagnostics has a unique, disruptive, nanoglue technology that can be

used in a variety of applications, supported by a strong IP portfolio

• Customers are now working with the Mix&Go technology in IVD, POC, Life

Sciences, Bioseparations and Medical Devices.

• Anteo is acquiring DIAsource: a Belgian company with growing revenue, stable

margins, ISO 13485 approved manufacturing and significant near term revenue

development opportunities

• The acquisition transitions the Anteo group towards a cash flow positive

position, it has complementary technology, significant value adding opportunities

and accelerates the Anteo business development program.


Pursuing Strategic Growth

9

The five growth areas have led Anteo to crystallise our approach to revenue

generating activities, and position the Company for future growth.


Exploiting Existing IP

10


Current Accessible Markets for Mix&Go

Primary markets

Market Value (US$ pa)

Global In Vitro Diagnostics

(IVD) - immunoassays 15 billion*

Global life sciences 2 billion**

Anteo is heavily focused on driving

growth in primary markets

Appetite for Mix&Go has reached a

tipping point with IVD and life-sciences

customers

Secondary markets

Market Value (US$ pa)

Bioseparations 6 billion***

Medical device coatings 7.6 billion****

Batteries (in R&D) 30 billion*****

The versatility and need for our

Nanoglue technology has created three

secondary areas of business; each

driven by customer need

11

Mix&Go is currently in products going through regulatory process.

Market and Markets 2014 ** internal research immunoassay estimate *** BioPharma-Reporter.com August 2016 **** Transparent Market Research Medical Device Coatings 7-04-2015

***** Frost and Sullivan 2009


Diagnostics Market Dynamics

12

• The global immunoassay market size

has forecast revenues of US$19.1

billion by 2018

• Tier-one players (Roche, et al) control

80% of market, driven by scale, large

automated systems, broad product

range, deep customer penetration, etc

• Remainder of the market is highly

fragmented

• Niche opportunities for small to

medium laboratories and esoteric

assays – like DIAsource as a mid-tier

and niche player

Global In Vitro Diagnostics Market (2012)

Total USD 64.7 billion

Hemostasis 3%

[CATEGORY NAME] [PERCENTAGE]

Self-monitoring blood glucose

19%

Point of care diagnostics

12%

Molecular diagnostics

11%

Tissue diagnostics 7%

Hematology 7%

Microbiology 5%


Anteo’s Solution: Mix&Go Universal Glue

13

Without Mix&Go With Mix&Go

Undamaged, oriented

Characteristics Benefits

Undamaged, fully functional proteins on

surface

Increased performance, sensitivity

Less non-specific binding

Improved protein stability

Less protein and/or beads require(up to

90%*)

Reduced cost

Saves valuable proteins, e.g. antigens

Easy and fast to use and manufacture

(incubation takes minutes c.f. hours*)

Improves efficiency

No anti-species antibody or streptavidin

Manufacturing scales well

Improved reproducibility, uniformity Improved accuracy with improved %CV

Consequences

Vast majority of proteins are non-

functional

Lower sensitivity, LOD, dynamic

range, non-specific binding

More protein needed, scale up

problems,

Batch to batch uniformity issues

Proprietary solution: metal polymers

Orientation is random

3D structure is damaged


Mix&Go Sales Cycle

14

Discovery

$

Integration /

Uptake

Product Development

$$

Customer Clinical Tests

Market Launch

$$$

Mix&Go Product

Suite

Licensing / supply:

Partners include

Merck KGaA,

Affymetrix & Bangs

3

Co-Development:

Partners include

BBI, POC1, IMRA

& Cook Medical

2

Direct Sales:

Distributors include

Sigma Aldrich,

Veritas & Koma

Biotech

1


Adoption of Mix&Go in Core IVD/LS Markets

o Licensing - (Merck KGaA, Affymetrix, Bangs

Laboratories)

o Co-development of products through partnerships (BBI,

POC1, IMRA, Sigma Aldrich plus a number of global life

science and veterinary companies worldwide)

o Product sales - Mix&Go Reagents, Coupling and

Activation Kits are being sold and used globally

o Distribution - Veritas Corp. (Japan, exclusive) and

Sigma Aldrich (global, non-exclusive), Koma Biotech

(Korea, non-exclusive)

o Medical Devices – Cook Medical (Co- development)

and University of Queensland (In Vivo)

15


Exploiting Existing IP

16

o AMG kits – launch of the Anteo

Mix&Go off the shelf products

o Kits combine IP with Anteo’s know-

how allowing users to adapt quickly to

Mix&Go chemistry

o The introduction of the 200nm kit has

brought a strong response and is part

of a regulatory trial with a long-term

supply agreement

AMG Activation Kit – just one of the kits in the

Anteo Mix&Go range


Expanding Core Competencies and IP

17


Expanding Core Competencies and IP

18

o Increasing portfolio in nanometre thin

glues – for almost any platform and

surface (hydrophilic to hydrophobic)

o Toolkit that complements Mix&Go (in all

AMG products)

o Patent portfolio progress - 5 new

• Conjugating Molecules to Particles,

• Heterofunctional Binding Systems,

• Sample pre-treatment

• Energy

• Functional coatings VP of Scientific Affairs, Josh Soldo discusses

sample pre-treatment IP at AACC


Development of Products

19


Development of Products

20

3 Mix&Go and 5 AMG Kits on Market

o AMG™ Activation Kit for Multiplex

Microspheres – December 2014:

custom developed for use with

Luminex particles

o AMG™ Coupling Kit, 200 nm

Magnetic Particles - primarily used

for lateral flow testing,

o 3 more kits scheduled by Q1 2016

(Good feedback from beta testing)

Above: a selection of products available to

customers through the Anteotech.com website

http://www.anteotech.com/


Exploiting Non-core Opportunities

21


Exploring Non-core Opportunities

22

o Cook Medical collaboration –

assessing the use of Mix&Go in vivo

(in bodies) through medical device

applications – good relationship and

prototypes well received

o Anteo Energy project – Research

using Anteo’s nanoglue technology

affirms value proposition to improve

efficiencies in capacity, charging times

and battery life.


Acquisition of Synergistic Assets

23


Acquisition of Synergistic Assets: DIAsource

24

o Established in 1971, DIASource is a privately-

owned and independent specialist diagnostic

company, based in Belgium

o Vertically-integrated company that develops,

manufactures, markets and distributes clinical

diagnostic products in the fields of

endocrinology; especially bone metabolism,

fertility, cardiovascular and oncology

o Established catalogue of ~300 products, with

sales in 75 countries through direct channels as

well as a network of 90 main distributors and 40

OEM partners


DIAsource: Company Overview

25

BELGIUM

FRANCE

NETHERLANDS

Louvain-La-Neuve

GERMANY

LUX.

• Located in a 4,500m2 facility in the

science park of the University

Louvain-la-Neuve, near Brussels in

Belgium

• ISO 13485 manufacturing facility

that produces FDA/CE approved

products with further capacity

available for growth

• All employees, including

management, will remain with the

Company following the combination

with Anteo (100 FTEs in the merged

business)

• Highly-experienced DIAsource

Chairman, Rolf Sickman, to join the

Anteo Board


DIAsource: Key People

26

Rolf Sickman, Chairman

• Commenced career at the Amsterdam stock exchange as an advisor for

institutional investors on fixed income investments

• In 1988, joined Kempen & Co and handled institutional sales fixed income,

alternative investments and corporate structures

• In 1993, appointed co-head fixed Income and Derivatives at Banque de Suez

• During the following years, developed and managed 2 single family offices

from the ground up overlooking in excess of 1 billion Euros in investable assets

• Master of Laws at the Vrije Universiteit in Amsterdam in 1984

Dr Jozef Vangenechten, CEO & Founder

• President of Vita B.V.B.A., Executive Vice President of Commercial Operations

at BioSource International Inc. & Managing Director of BioSource Europe,

S.A., BioSource International Inc.’s Belgium subsidiary, from 1998 to 2004

• From 1988 to 1998, worked for SGS (Societe Generale de Surveillance,

Switzerland) as General Manager and Director of their environmental

consultancy operations in Belgium

• From 1981 to 1988, worked as a Researcher at the Radiobiology Division of

Belgium Nuclear Energy Research Center

• Masters and Ph.D. degrees in Biology and Physiology from the University of

Antwerp in Belgium

Mr Rolf Sickmann

– will join Anteo

Board

Dr Jozef (Jef)

Vangenechten


DIAsource: Product Categories

27

RIA assays Vitamin D assays ELISA and

Instrumentation Antibodies

Radioimmuno-

assays (RIA) use

short life

radioactive

isotopes, such as

I125, for labelling

in an immuno-

assay.

RIAs are

recognised as

extremely

sensitive.

Immunoassays

that that test

Vitamin D levels

in the blood.

Can be of many

varieties,

including RIA,

ELISA and on

large automated

systems.

Point of Care

Vitamin D assays

are now starting

develop.

Enzyme-linked

immunosorbent

assay (ELISA) is

a test that uses

antibodies and

colour change to

identify a

substance.

An antibody is a

protein molecule

that can be found

in the blood and

is intended to

attack bacteria,

viruses and

foreign

substances.

These are a basic

element of an

immunoassay.


DIAsource: Global Distribution Platform

28

I r r a w a d d y

• Sino FDA

approval for

Vitamin D

provides large

market

opportunity in

China

• Additional

opportunities for

RIA in Republic of

Korea – growing

market

66% Sales in

EMEA

19% Sales in

Americas

15% Sales in

Asia Pacific

Note: DIASource sells products into 75 countries. Core markets (those with sales >€100,000 in FY14) have been illustrated with flags. Key markets (ranked by quantum of sales) include Belgium, the

United States, Germany, Spain, Iran, Republic of Korea, China, Italy, Brazil, India and France.

Significant opportunities for Anteo’s Mix&Go

product range across established distribution

channels

DIAsource: Revenue & Earnings Growth

29

DIAsource has achieved 4 years of consistent revenue & EBITDA growth – with ongoing margin expansion

Note: Financial year end 31 December.

€ m

illio

ns M

arg

in (%

)

Earn-out (EO) revenue targets,

as agreed with vendors o Generated revenue of €11.9m (A$18.0m)

in 2014 and €7.2m (A$10.9m) in the first

half of 2015

o On track to achieve EBITDA targets in

FY15 (31 Dec balance date)

o Represents revenue growth of 25%

o Recently booked the fifth consecutive

growth quarter and fifth consecutive best

quarter ever in the Company’s history,

thanks to growth in its Vitamin D portfolio

and its established line of specialty RIA

and ELISA assays

o FY16 & FY17 data as agreed with

vendors

o KPMG are the company’s auditors. Grant

Thornton provided financial & tax due

diligence services

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 30

DIAsource Acquisition

Anteo Diagnostics to acquire 100% of the equity of DIAsource

ImmunoAssays SA in Belgium retaining the operational management.

• Purchase price of €15.4m (A$23.3m) with two year vendor earn-out of up to

€7.3m (A$11.1m), subject to achievement of revenue and margin targets

• Revenue of €11.9m (A$18.0m) in 2014 and €7.2m (A$10.9m) in 1H 2015

(25% growth pcp), with EBITDA margins of 20%

• DIAsource team to join Anteo. Chairman to join Anteo Board and CEO to run

current business. Combined employees to number 100

• Transitions Anteo towards a cash flow positive business with global

distribution, design & manufacturing capabilities and a broad product range

• 75 countries; 90 main distributors and 40 OEM partners


DIAsource – Key Benefits to Anteo

e

Complementary to ADO’s Mix&Go technology - technical synergies

ISO 13485 quality accreditation - credibility for Anteo customers – margin value add

Vertically integrated operation - utilise Mix&Go for faster development

75 country distribution network - cross-sell across geographies and clients

FDA approval for Vitamin D Elisa assay - US POL market

Unique Vitamin D Antibodies - ability to leverage internal capability around Vitamin D

Strong European foothold, highly experienced team that understands the market

Increase overall profile of Anteo in the Australian equity market and deliver returns to shareholders

Manufacturing capability - capacity to increase output by >40%

Critical mass - benefits of scale from extra Anteo business

DIAsource is a profitable, growing business which will contribute significantly to Anteo's bottom line

31

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 32

Summary and Conclusions

• Anteo’s strong portfolio of nanoglue products

and IP positioned within >$60b of addressable

market space

• Acquisition of DIAsource meets all the criteria

set

• Cash flow positive business

• Technical synergy

• Is accretive

• Manufacturing capability, Vitamin D,

geographic presence and eproduct integration

accelerate the Anteo market opportunity

• Transitions Anteo towards a cash flow positive

business


Contacts

Dr Geoff Cumming, CEO

Anteo Diagnostics (ASX: ADO)

Mobile: +61 417 203 021

Email: [email protected]

Web: www.anteodx.com

Investor relations:

Jane Lowe, IR Department

Mobile: +61 411 117 774

Email: [email protected]

33

anteo diagnostics agm presentation / diasource

Healthcare