resapp presentation at the asx ceo sessions
TRANSCRIPT
Digitalhealthcareforrespiratorydisease
TonyKeatingChiefExecutiveOfficerandManagingDirector
ASXTheCEOSessions15March2016
ASX:RAP
DisclaimerThispresentationhasbeenpreparedbyResApp HealthLimited(“ResApp”).The informationcontained inthispresentation isaprofessionalopiniononlyandisgiveningoodfaith.Certaininformationinthisdocumenthasbeenderived fromthirdpartiesandthoughResApp hasnoreasontobelievethatitisnotaccurate, reliableorcomplete,ithasnotbeenindependently auditedorverifiedbyResApp.Any forward-lookingstatementsincluded inthisdocument involvesubjective judgmentandanalysisandaresubjecttouncertainties,risksandcontingencies, manyofwhichareoutsidethecontrolof,andmaybeunknown to,ResApp.Inparticular,theyspeakonlyasofthedateofthisdocument, theyassumethesuccessofResApp’s strategies,andtheyaresubjecttosignificantregulatory,business,competitiveandeconomicuncertaintiesand risks.Actualfutureeventsmayvarymateriallyfromtheforward-lookingstatementsandtheassumptionsonwhichtheforward-lookingstatementsarebased.Recipientsofthisdocument (Recipients)arecautioned tonotplaceundue relianceonsuchforward-lookingstatements.ResApp makesno representationorwarrantyastotheaccuracy, reliabilityorcompletenessofinformationinthisdocumentanddoesnottakeresponsibility for updatinganyinformationorcorrectinganyerrororomissionwhichmaybecomeapparentafterthisdocumenthasbeenissued.
Totheextentpermittedbylaw,ResApp anditsofficers,employees,relatedbodiescorporateandagents(Agents)disclaimallliability,direct,indirectorconsequential (andwhetherornotarisingoutofthenegligence,defaultorlackofcareofResApp and/oranyofitsAgents)foranylossordamagesufferedbyaRecipientorotherpersonsarisingoutof,orinconnectionwith,anyuseorrelianceon thispresentationorinformation.
Thispresentation isnotanoffer,invitation,solicitationor recommendationwithrespecttothesubscription for,purchaseorsaleofanysecurity,andneither thispresentationnoranythinginitshallformthebasisforanycontractorcommitmentwhatsoever.
AllamountsinAustraliandollarsunlessstatedotherwise.
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Digitalhealthcareforrespiratorydisease
§ Developing theworld’s firstclinically-tested, regulatory-approved respiratory diseasediagnostic testforsmartphones - Noadditionalhardware needed- Uniqueopportunity tointegrateintotelehealth providers’existingplatforms- Appstoprovideclinical-quality(‘GoldStandard’)diagnostictestsandchronicdiseasemanagement
toolsdirectlytoconsumersandhealthcareproviders§ Hugeglobalmarket,700M+ doctorvisitsannually for respiratory disease1
§ Strong clinicalevidence frommultiple pediatric clinicalstudies, adultstudyunderway§ Successful Pre-Submission meeting heldwith theUSFDA inQ12016§ Fully-funded tobringproduct toUSmarket inlate2016
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1.ResAppestimate basedonOECDdoctorvisitspercapitadataandassuming10%ofvisitsare forrespiratorydisease (basedonUSdata)
Companyoverview
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CapitalStructure(ASX:RAP)MarketCap. $151M
SharePriceas of14March 2016
$0.26
Shares onIssue1 580M
Performance Shares2 93.75M
Options3 15.47M
StaffIncentiveOptions4 25M
CashBalanceas of31December 2015
$2.7M
1. Includes 121Mescrowed shares2. Issuedonachieving $20Mofannual revenue oronanacquisition3. Exercise price of2.6c,expire 31December 20164. IssuedtoMD, 5Moptions atexercise price of2.5c,5Mat5cand10M
at10c,5yearexpiry;Issued toDr Abeyratne, 3Mat5cand2Mat10c
BoardofDirectorsDrRogerAston Non-Executive Chairman(Chairman ofOncosil,formerCEOofMayne Pharma,CambridgeAntibody,cofounder ofpSivida Corp)Dr TonyKeating Managing DirectorandCEO(formerDirector,CommercialEngagement ofUniQuest,engineeringmanagementroleswithExa Corporation)Mr BrianLeedman ExecutiveDirectorandVP(ChairofAusBiotech-WA,co-founderofImugene LtdandOncosil MedicalLtd,formerVP,IRatpSivida Corp. andGroupMarketingManageratE&Y-WA)Mr AdamSierakowski Non-ExecutiveDirectorMr ChrisNtoumenopoulos Non-ExecutiveDirector
Substantial ShareholdersFreemanRoad:7.59%UniQuestPtyLtd:7.28%Mr BrianLeedman:5.28%Top20Shareholders:43.7%
Diagnosisofrespiratorydiseaseisthemostcommonoutcomefromavisittothedoctor
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AcuteconditionsURTIs,influenza,bronchitis,bronchiolitis,pneumonia,pertussis,croupChronicConditionsAsthma,COPD,cysticfibrosis,bronchiectasis
§ 125M doctorvisits1 intheUSforrespiratorydisease(10%ofallvisits)
§ 6-8M doctorvisits2 inAustraliaforrespiratorydisease
§ Est.700M+ doctorvisitsglobally3 forrespiratorydisease
§ HighprevalenceandgrowthinAsia
1.Ambulatorycasevisits,NationalAmbulatoryMedical CareSurvey20102.AustralianLungFoundation3.BasedonOECDdoctorvisitspercapitadataandassuming10%ofvisitsare forrespiratorydisease (basedonUSdata)
Currentlydiagnosedusingstethoscope,imaging(x-ray,CT),bloodand/orsputumtests
Revolutionarytoolbasedonsoundsignatures
§ Exclusiveworldwidelicensetomachinelearningtechnologydeveloped byA/Prof.AbeyratneatTheUniversityofQueensland
§ Usessignaturesincoughingandbreathingsounds todiagnosedisease
§ PatentapplicationfiledinUS,Australia,Europe,China,JapanandSouth Korea
§ Canbedeliveredusingtoday’ssmartphones, noadditionalhardwarerequired
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Cough Spectra too is different
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Cough Spectra too is different
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Easytouse,instantdiagnosisonasmartphone
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Strongclinicalevidence
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2013Study Sensitivity Specificity Accuracy
Pneumoniavs.allrespiratory 94% 100% 96%
Asthmavs.pneumonia 100% 80% 90%
1. Abeyratne etal.,AnnalsofBiomedicalEngineering, 20132. Kosashi etal., IEEE Transactions inBiomedicalEngineering, 2015
Currentstudy(startedMarch2015)- FundedbyResApp- ManagedbyTheUniversityofQueensland- Sites:Joondalup HealthCampusandPrincess
MargaretHospital,Perth,Australia- 598pediatric patientsenrolled todate
(continuing)
Proofofconceptstudy(2013)- FundedbyTheBillandMelindaGates
FoundationandTheUniversityofQueensland- Site:Sardjito Hospital,Indonesia- 91patients,majorityundertheageof5- Resultspublishedinpeer-reviewed journals1,2
2015StudyPreliminaryResults Sensitivity Specificity Accuracy
Pneumoniavs.norespiratory 100% 95% 97%
Asthmavs.norespiratory 97% 92% 95%
Bronchiolitis vs.norespiratory 100% 100% 100%
Croupvs.norespiratory 94% 100% 99%
URTIvs.norespiratory 100% 95% 96%
Pneumonia,crouporbronchiolitisvs.URTI 89-100% 90-95% 89-98%
Differentialdiagnosisofpneumonia,croup,URTIandbronchiolitis
92-100% 85-97% 91-99%
Telehealthisoneofthebiggesttrendsinhealthcare
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§ TwolargestUSpharmacychainshaverecentlyannouncedpartnershipswithtelehealth providers
§ Teladoc andAmericanWell: 10M+customerseach§ InsurerssuchasCigna,Aetna,UnitedHealthcare§ EmployerssuchasBankofAmerica,Volvo,Yahoo!§ Hospital systemssuchasMountSinai
75MUStelehealth consults
(‘evisits’) in2014(Deloitte)
56%annual growthrate
(IHS)
$12-$16BTotalUSmarketopportunity
(GoldmanSachs,Deloitte,Teladoc)
$50BTotalglobalmarket
opportunity(Deloitte)
ResAppdirectlyaddressesthemostcommondiseaseencounteredbytelehealthproviders
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1.Uscher-PinesandMehrotra (HealthAffairs,2014)2.IHS3.BasedonOECDdoctorvisitspercapitadataandassuming10%ofvisitsare forrespiratorydisease (basedonUSdata)
§ 30%of telehealthconsults foracuterespiratory disease1
§ 22.5Mtelehealth consults peryeartoday foracuterespiratory disease§ Number oftelehealth consultations growing at56%peryear2
§ 700M+ globaldoctor visitseachyearforrespiratory disease3- Accessthroughgrowthintelehealthplus in-persontests(in-clinic,in-hospital)
ThemarketsegmentaddressedbyResAppisenormous
Marketsegmentsandbusinessmodel
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Telehealth Clinical use Developingworld Directtoconsumer
Commercialstrategy
Partnerwithtelehealthproviderstoreach10sofmillionsofpatients
Initialuseinemergencydepartments(ED),extendingtoregularclinics
Partnerwithleadinginternationalaidagencies toequipfieldpersonnel
Directtoconsumerviaappstorestotargetgrowthinconsumer-ledhealth
Valueproposition
✓ Theonlyremoteclinically-accuratediagnostictool available
✓ Easilyintegratedintoexistingplatforms
✓ Reducecosts(<$10vs >$200forx-ray)
✓ Reducetime(x-rayadds~30mins)
✓ Lowcost,accurate&fast✓ Usablebynon-medical
personnel✓ IntegratesintoIMCI
framework
✓ Convenience✓ Low cost✓ Consumer
empowerment
Revenuemodel B2Bpertestfee(<$10)fromtelehealth providers
B2Bpertestfee(<$10)fromhealthcarepayors
B2Blowcostannualsubscriptionfromaidagencies
B2C downloadandpertestfeedirectfromconsumers
Marketsize • 22.5Mrespiratory-relatedUStelehealth consultsp.a.• 56%growthrate• Majortelehealth providershave10sofmillionsofcustomerseach
• 13.4MUSEDvisitsforrespiratorydiseasep.a.1(~4.6Mforchildren)• 700M+ambulatoryrespiratoryconsultationsp.a.2
• 1Mchilddeathsduetopneumoniap.a.3• 151Mcasesofpneumoniaindevelopingcountriesp.a.3
• 400MiPhoneusers4• 1.6BAndroidusers4• mHealth appmarketexpectedtogrowto$25Bbyendof20175
1.NHAMCS(2011)2.ResAppestimate basedonOECDpercapitadata3.WHOestimate4.Statista (2014estimates)5.Research2guidance mHealth AppDeveloperEconomics(2014)
2015:Anoutstandingyearofachievements
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¨ Initiatedandenrolled 598patients inmulti-site pediatricclinicalstudy¨ Reported positive preliminary results frompediatric clinicalstudy¨ Initiatedadultclinicalstudy¨ Appointed best-in-classFDAregulatory consultant – Experien Group (Sunnyvale, CA)¨ FiledPre-Submission packagewith theUSFDA¨ Builtup theteamwith threenewhires(software development, clinical/regulatory
operations)¨ Developed highperformance cross-platform software library thatcanbedeployed via
smartphone app,SDKorcloud-hosted Software-as-a-Service API¨ RaisedAU$4million and listedon theASX
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Milestonesfor2016
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¨ Obtainedapproval toenrolladultpatientsatsecondhospital site,TheWesleyHospital (Q1)¨ Reported interimresults frompediatric studydemonstrating superiority tostethoscope for
lower respiratory tractdisease (Q1)¨ Securedpartnership withglobalhumanitarian organisation fordeveloping world trial(Q1)¨ Successfully heldPre-Submission meeting withtheUSFDA(Q1)¨ Reportupdated results from pediatric clinicalstudy (Q1)¨ Reportpreliminary results from adultclinicalstudy (Q2)¨ Initiatepivotal clinicalstudy inUSandAustralia (Q2)¨ Filedenovopremarket submission withFDAfor firstResApp product (mid-year)¨ FDAmarketing approval for firstResAppproduct (Q4)
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Summary
§ Revolutionary technology – diagnosis andmanagement of respiratory diseasewithout theneed foradditional hardware
§ Multi-sitepediatric clinicalstudyprogressing verywellwithover500patientsenrolled andpositive preliminary results- Continuingenrolmentbeyondinitialtargetpatientnumbersduetothehighvalueofdatacollected
§ Enrolment inadultclinicalstudyprogressing quickly, approvalobtained for secondsite§ USFDAPre-SubmissionmeetingheldinQ12016
- Confirmeddenovoregulatory pathway,combinedUSandAustralianpivotalclinicalstudy
§ Further results frompediatric andadultclinical studiesdueinQ1-Q22016§ On-tracktobringproducttomarketinlate2016, launchviatelehealth partner toreach
millions ofpatientsquickly
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