november 2014 (rwlk: nasdaq) - jefferies · experienced management team larry jasinski ceo dr. amit...
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November 2014 (RWLK: NASDAQ)
Safe Harbor
This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any
securities, and may not be relied upon in connection with the purchase or sale of any security. Sales and offers to sell
ReWalk Robotics Ltd. securities will only be made in accordance with the Securities Act of 1933, as amended (the “Act”),
and applicable Securities and Exchange Commission (“SEC”) regulations, including the written prospectus requirements.
This presentation is proprietary and is intended solely for the information of the persons to whom it is presented. It may not
be retained, reproduced or distributed, in whole or in part, by any means (including electronic) without the prior written
consent of ReWalk Robotics Ltd. Certain statements contained in this presentation constitute forward-looking information.
These statements reflect management’s current beliefs and are based on information currently available to management.
Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ
materially from those expressed or implied in such statements. These risks and uncertainties should be considered carefully
and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking
statements contained in this document are based upon what management believes to be reasonable assumptions,
management’s current beliefs are based on information currently available to management. Certain material factors or
assumptions are applied in making forward-looking statements, and actual results may differ materially. Management
cannot provide assurance that actual results will be consistent with these forward-looking statements. The Company
undertakes no obligation to update or revise any forward-looking statements. This presentation contains statistical data that
we obtained from industry publications and reports generated by third parties. Although we believe that the publications and
reports are reliable, we have not independently verified this statistical data. The Company is an “emerging growth
company” as defined under the Act. These slides and the accompanying oral presentation are intended to qualify as
communications permitted pursuant to Section 5(d) of the Act. The Company has filed a registration statement (including a
prospectus) under the Act with the SEC for the transaction to which this communication relates. You should read the
prospectus in that registration statement and other documents the Company files with the SEC for more complete
information about the Company and the proposed offering. When available, you may obtain those documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. The trademarks included herein are the property of the owners
thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or
services of the Company or this proposed offering.
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About ReWalk Robotics (RWLK: Nasdaq)
1Disruptive platform technology enabling many individuals with paralysis to walk
independently
2“More Than Walking”: Potential to reduce secondary medical complications and lower
healthcare costs
3Only exoskeleton with FDA clearance (June 26, 2014) and CE mark clearance for both
Personal and Rehabilitation use
4 Demonstrated reimbursement success in the U.S. and Germany
5 Direct sales force in U.S. & Germany; distributors elsewhere in Europe & Asia
6 Addressing unpenetrated, multi-billion dollar market opportunity
Fundamentally changing the health and life experiences
of individuals with spinal cord injury
3
Experienced Management Team
Larry Jasinski CEO
Dr. Amit Goffer Founder, President & CTO
Ami Kraft CFO
Ofir Koren VP of R&D
Jodi Gricci VP of Global Marketing
Ori Schellas Director of Operations
John Hamilton VP of Regulatory / Reimbursement
Miri Pariente Global Director of Quality
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The Need…
Wheelchair confinement can cause severe physical and psychological
deterioration, resulting in bad health, poor quality of life, low self-esteem and
significant medical expenses
Secondary medical
consequences of paralysis:
Difficulty with bowel and urinary tract
function
Osteoporosis
Loss of lean mass / gain in fat mass
Insulin resistance
Diabetes
Heart disease
Increased
healthcare costs due to
paraplegia-related
complications
87% of spinal cord injury
patients discharged to private,
non-institutional residences
Increased
need for in-home
personal device
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U.S. Prevalence of SCI
…And the Opportunity
273,000 people in the U.S. living with SCI
An estimated 218,000 (or ~80%) are
candidates for ReWalk (1)
12,000 new cases of SCI annually
Implies potential for annual market growth
of $670 mm (3)
U.S. SCI Market Potential ($mm) (2)
273,000 Individuals with SCI in U.S.
___________________________
1. National Spinal Cord Injury Statistics Center (NSCISC).
2. Based on U.S. Census Bureau data.
3. Assumes 80% of 12,000 new annual injuries are candidates for ReWalk at $70,000 per unit.
Note: The metrics provided above are forward-looking in nature and are subject to significant business,
economic and competitive uncertainties and contingencies, many of which are beyond the control of the
Company. Please refer to the Safe Harbor statement for more information.
Potential ReWalk Population
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The ReWalk Solution
ReWalk Personal and ReWalk Rehabilitation designed to fundamentally change the
health and life expectancies of users
Enables walking in multiple environments, as well as
ability to sit, stand, turn and, in some cases, climb and
descend stairs (1)
Light, wearable exoskeleton designed for all-day use
User-initiated walking, powered by patented tilt-sensor
technology
Supports its own weight; user does not expend
unnecessary energy while walking
Rechargeable battery power
Published clinical studies demonstrate
ReWalk’s ability to mimic a natural gait and
deliver functional walking speed
Computer,
software and
batteries
Tilt sensor
Pelvic support
Motors, gears
and software
Shoe insert
___________________________
1. Use of stairs is cleared under the CE mark, Canadian and Israeli registration; not cleared for
stairs by the FDA in the U.S.
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The ReWalk Difference: Patented Tilt Sensor Technology & Gait Algorithm
Mimics natural gait
Designed for all-day use by
minimizing the amount of
effort required to use device
Enables user control of system
Proprietary Gait AlgorithmPatented Tilt Sensor
Technology
Results Mimic Natural Walking Experience
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Largest Body of Published Clinical Data
Data supports:
• ReWalk safety as an ambulatory device
• Secondary health benefits of ReWalk use
• A more natural walking experience than competing devices
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Demonstrated Secondary Health Benefits
“Exoskeletal-assisted
walking and other
mobility skills can be
performed
independently by persons
with motor-complete SCI.”
- Exoskeletal-Assisted Walking for
Persons with Motor-Complete
Paraplegia. STO-MP-HFM-228.
6:1-14.
“ReWalk holds
considerable potential as a
safe ambulatory
powered orthosis for
motor-complete thoracic-
level spinal cord injury
patients.”
- American Journal of Physical
Medicine & Rehabilitation
“Powered exoskeleton-
assisted walking in
persons with motor-
complete SCI generated
vGRF similar in
magnitude and pattern
to that of able-bodied
walking.”
- The Journal of Spinal Cord
Medicine
“…this technology may
potentially be adapted in
the future for others with
walking dysfunction from
stroke, cerebral palsy,
myelomeningocele,
traumatic brain injury,
and Guillain Barré
syndrome.”
- The Journal of Spinal Cord
Medicine
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Reduction in
Medication
Dependency
Improvement in
Bowel and
Urinary Tract
Function
Improvement in
Body and Bone
Composition
Improvement in
Metabolism
and Physical
Fitness
Reduction in
Hospitalization
Reduction in
Pain and
Spasticity
“More Than Walking”: benefits of mobility serve as a pathway to better health
ReWalk: Positioned to Drive Market Adoption and Capture the Personal Opportunity
Regulatory
Clearance
FDA
CE
Demonstrated
Reimbursement
U.S.
EU
Personal / Home Use
Independent Walking /
Functional Speed
Manufacturing
Clinical Data
Commercial Early-Stage
Too early
Too earlyToo early
Too early
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Market
PenetrationDistribution
R&DScalable
Infrastructure
Reimbursement
Five-Part Execution Strategy
2
3
4
5
1
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Market Penetration Strategy
In 80+
rehabilitation
centers
worldwide
Covered vastly
more miles
than any other
technology
Over 1,000
ReWalk users
trained
Classifying
personal “leads”
and customer
conversion
Laying the foundation: Direct outreach, data generation, market education and
awareness, building leads / referrals
Penetrate
rehabilitation
centers, hospitals
and similar facilities
that treat patients
with SCI
Position ReWalk
as an integral
part of their
rehab programs
Develop broad-
based training
network within
these facilities
Prepare users
for home
and community
use
1
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Distribution: Core Markets
Building our direct field organization
Leveraging distributors to extend reach
Broad Current and Targeted Distribution Platform
2
___________________________
1. Current distribution: Austria, China (including Hong Kong and Macau), France, Italy, Japan, Russia,
Singapore, South Korea, Taiwan, Thailand, Turkey, UK.
2. Targeted distribution: Australia, Canada, India, Kazakhstan, Middle East, New Zealand.
Note: The metrics provided above are forward-looking in nature and are subject to significant business,
economic and competitive uncertainties and contingencies, many of which are beyond the control of the
Company. Please refer to the Safe Harbor statement for more information.
Direct Sales
Distributors – Near-term Targets (2)
Distributors – Current (1)
Training Center Locations
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Scalable Infrastructure: Established Quality and Manufacturing Capability
Current capacity meets expected needs; expansion capacity meets the five-year horizon
Established internal quality control organization
Contract manufacturing with Sanmina
Corporation (NASDAQ: SANM)
Well-established OEM with $5.9bn FY13
revenues (1)
Expertise in medical device industry
Complies with all U.S. and international
regulatory requirements
Sanmina assumed production of all ReWalk
systems beginning Q1 2014
3
Sanmina provides ReWalk with
significant scale-up capacity
___________________________
1. Source: Sanmina Corporation FY 2013 10-K.
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Reimbursement Strategy
Self-Pay
National
Coverage
Insurance
Companies Initial focus on
penetrating substantial
private payor market
Strong precedent of
payments received
Sustainable business
model
Will be driven by
success in private
payor market and
additional ongoing
clinical studies
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Near-term
Focus
Long-term
Focus
We expect to generate revenues from a combination of self-payors and third-party payors
Dept. of Veterans Affairs
Workers’ Compensation
Private Insurance
Direct Purchase
Foundations
Fundraisers
Legal Settlements
Individual Applications
Code Generation
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Reimbursement Strategy (cont’d)
Leveraging case-by-case success in the U.S. and EU
U.S.
James J. Peters VA (Bronx, New York) is fully committed to supporting
the procurement of ReWalk Personal for all eligible veterans with SCI
1st hospital to research health-related benefits of an exoskeletal
walking device for people with SCI
Europe
Received coverage decisions from four large German insurers
~30 pending cases in Germany; have won coverage decisions on four
cases thus far
In direct markets, insurers have been covering basic codes for reimbursement
4
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Personal
Systems
Rehabilitation
Systems
Research & Development Pipeline: Building on Our Platform
ReWalk - NG
ReWalk - MS
ReWalk - Q
ReWalk -
Cerebral
Palsy
Continued
Innovation
ReWalk -
Stroke
Quadriplegia
Add-on
sophisticated
crutches
Hemiplegia /
Hemiparesis
Adapted “half
ReWalk” suit
Enhance the
Physio &
Hydro therapy
possibilities via
motorized
exoskeleton Multiple Sclerosis
Adaptive software
to manage various
disease stages
Next generation
technology
More efficient drive
mechanism
Slimmer profile
Lighter body
Down the Road FutureCurrent R&D
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Existing Market New Market Opportunity
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Strong Intellectual Property Position
U.S.
Method patent issued
for proprietary tilt
sensor technology
One apparatus patent
issued as a gait-
locomotor
Europe & Rest of World
One active patent in
Europe
Six pending patent
applications in various
countries around the
world
Internal & external reviews
show freedom to operate
Multiple divisionals and
other filings
Title Status About
Gait-Locomotor
ApparatusGranted in U.S. and Europe
General view including concept of
utilization of a tilt sensor to function
Locomotion Assisting
Device and Method
4 divisionals
pendingGround forces – based algorithms
Locomotion Assisting
Device and Method2 divisionals pending Walk using ground forces
Integrated Tilt Sensor
Pending
Locations of tilt sensor
PCT 1st Notice 24.5.2012
Motorized
Exoskeleton UnitPending
2 motors on each thigh, next
generation concept
Prevent Fall Injuries in
Exoskeletons
Submitted
e.o. 5.2012Airbag
Exoskeleton
QuadriplegicsApplication Incorporate controlled crutches
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Strategic Alliance with Yaskawa, A Global Robotics Leader
Unique combination of product expertise, name / brand recognition and
opportunity for Asian market penetration
Background
Provides Technology ValidationScope of Agreement
Penetrating the Asian Market
Multi-billion dollar global leader in
industrial robotics and automation
Strategic alliance formed in 2013; $10
million investment in ReWalk Robotics
Exclusive distributor of ReWalk in select
Asian markets
Application of Yaskawa expertise to
ReWalk product improvement and
quality
Exploration of joint research and
development
Reciprocal product marketing and
distribution
“Robotics has the potential to change the world of healthcare and
rehabilitation, and [ReWalk’s] knowhow in the field will allow us to
contribute to quality of life improvements of people around the
world.”
“We are looking forward to developing and expanding this
strategic partnership in the years to come as we strive to achieve
the goals we set for ourselves in our Vision 2015.”
Junji Tsuda, Yaskawa CEO
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Revenues $1.5mm
277% growth Y-o-Y
Sold 26 ReWalk systems globally
Expanded sales, marketing and
training infrastructure
Invested further in R&D
Financial Highlights
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Closed Q3 with $47.7mm cash, equivalents, short-term deposits
IPO net proceeds of $38.7mm
$12.8 mm from a pre-IPO financing round
$1.1 mm from the exercise of warrants to purchase convertible preferred shares
No debt
Q3 2014 Highlights Strong Revenue Growth
Strong Balance Sheet
1H
Q3
$2.5M
$1.2M
Investment Highlights
1Disruptive platform technology enabling many individuals with paralysis to walk
independently
2“More Than Walking”: Potential to reduce secondary medical complications and lower
healthcare costs
3Only exoskeleton with FDA clearance and CE mark clearance for Personal use and
Rehabilitation center use
4Growth supported by solid underlying demand for ReWalk systems + expanding user
base + increasing reimbursement success in the U.S. and Germany
5Building sales through direct sales force (U.S. & Germany) + distributors (elsewhere in
Europe and Asia)
6Uniquely positioned to continue as leader in multi-billion dollar powered exoskeleton
market
Fundamentally changing the health and life experiences
of individuals with spinal cord injury
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ReWalk NASDAQ / Times Square 17 Sept
26
Thank You!