a revolution in mind csnx: hsm corporate presentation july 2014
TRANSCRIPT
A Revolution in Mind
CSNX: HSM
Corporate Presentation
July 2014
www.heliusmedical.com | CSNX: HSM
DisclaimerThis presentation contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from Helius Medical Technologies expectations and projections. The Ontario Securities Commission has neither approved nor disapproved the information contained in this presentation. Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the development of medical devices and FDA or other international regulatory agencies, product obsolescence, the uncertainties involved in patent defense and complexities and timelines associated with medical device product approvals in multiple jurisdictions. The possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors.
Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.
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2www.heliusmedical.com | CSNX: HSM
Helius Medical Technologies Inc. is a medical device holding company, enabling technologies with the potential to heal us. The company is targeting vastly underserved markets with a ground breaking device to significantly enhance the body’s ability to heal itself.
The company’s initial asset is The PoNS™ Device PoNS treats Neurological Symptoms caused by disease or trauma The PoNS™ Device has numerous potential medical indications; tested for MS,
Stroke, Tinnitus... Existing TBI treatments largely ineffective: > 35 years since new treatments Sizeable scope for treatment; ~660k US military TBI sufferers, 5.3M living with TBI
related disability. US armed forces committed ~$30+M (non-dilutive) to advance to FDA approval Testing and studies, to date, provide encouraging indications Potential FDA approval anticipated by Q3, 2016
Overview
www.heliusmedical.com | CSNX: HSM
Capital Structure & Financial Information
Financial Overview:• $7.2 million investment ($3M from NIH, $4.1 private non dilutive donations)• $6.9 million from concurrent financing with new listing• $7.0 million Total in treasury post listing on CSE
• Non Dilutive Commitment: US Army– $18.5M est. for development of registration trial and regulatory submission. – $20.0M est. for development of further indications
(Tinnitus, PTSD, Sleep Improvement, Pain Management)
Shares
Shares outstanding 60,540,083
Options -
Warrants from financing 7,620,000
Broker Warrants from Financing 914,400
Convertible debenture 2,564,705
Fully Diluted 71,639,188
Ownership* # Shares
Management 33,000,000
* all approximations above
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The PoNS™ Device
“Amplifying the body’s ability to heal itself”
Next Generation Device (Jun 2014)
Cranial Nerve Non-Invasive Neuromodulation
5www.heliusmedical.com | CSNX: HSM
Important Core Concept - Neuroplasticity• Neuroplasticity describes the ability of the brain to remain “plastic”
• The PoNS Device provides stimulation to the brain-stem and other
brain structures via the cranial nerves• This stimulation when combined with a “task” (physical, cognitive or
mental exercises) – seems to amplifies the brains self recovery
mechanism– reinforces new learning – “re-engage” existing neural networks.
• Multiple disease symptoms appear to be improved.
6www.heliusmedical.com | CSNX: HSM
PoNS 4.0 Device
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Anxiety
SleepWellbeing
Bladder/Bowel Control
Spasms in LimbsTremors
Using Hands
Stiffness
Clumsiness
Balance
Concentration
Limits on Work
SlownessSelf Transport
Clinically Significant
Psy
cho
-So
cia
lP
hysi
cal
Physical Tasks
Impatience
Depending on Others
Mental Fatigue
Limits on Mobility
Heavy Limbs
Uncoordinated
Confidence
Moving Indoors
GripCarry Things
Limits on Socializing
Spontaneity
Worry about MS
Severity of SymptomsNot at All Extreme
MS Example: A Spectrum of Symptoms Multiple Sclerosis Impact Scale (MSIS-29)
8www.heliusmedical.com | CSNX: HSM
Weeks
DG
I ch
ang
e
* p < 0.05** p < 0.01*** p < 0.005
Stu
dy e
ntry
2 w
ks la
b
4 w
ks h
ome
8 w
ks h
ome
12 w
ks h
ome
Clinically significant
Mean DGI10 Active10 Control
Example Data: 20 Patient Multiple Sclerosis Pilot Study
Two groups (10 each):
1. “Active” PoNS + exercises
2. “Control” PoNS + exercises
“Control” PoNS = no electrical stimulus
9www.heliusmedical.com | CSNX: HSM
Example Data : TBI – 4 Patient Pilot study
Subject A Subject B Subject C Subject D0
10
20
30
40
50
60
70
80
90
100
Balance Sensory Organization Test (SOT),
Before and After 5 days of CN-NINM Training
Before After
62
10
22
47
Four female subjects, mean 48.3 y/0Moderate, close-head non-penetrating, concussive TBI9-11 Glasgow Coma ScaleSENSORY ORGANIZATION TEST (SOT)
▲=5.0 Clinically Significant Change
SO
T P
oin
ts
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5.3M living with TBI related disability1.750 TBI/ year 30% chronic disability
600,000Retired Soldiers TBI
60,000Active Duty Soldiers TBI
$76.5BCost to US
30%Chronic Disability
Civilian• Blunt trauma
• MVAs
• Sports
• Assaults
Military• US: 2010-2012 – 100,000+ cases
• 28% of patients at Walter-Reed >$100,000,000/year
• Explosive blast injury, Overpressure, Penetrating injury, Diffuse axonal injury
First Indication: Concussive Traumatic Brain Injury (TBI)
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Existing TBI Treatment Largely Ineffective
• “Treatment plan” involves rehabilitation efforts to teach patients how to cope with their specific injury-related symptoms.
• Non-responsive TBI patients have no treatment protocol
• All single therapy development has failed in multicenter clinical trials
• In last 35 years no new treatment for TBI have been suggested or brought forward.
• This is an underserved market with high morbidity associated cost burden….a fact well appreciated by the US Army.
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US Army Sponsored Registration Plan
• Seeking a de-novo clearance from the FDA for the treatment of Balance disorder related to mild to moderate TBI…..study primary endpoint is improvement in balance.
• Confirmed as Class II, non-significant risk, device.• Collaborative Research and Development Agreement (CRADA) with
the US Armed Forces– Armed forces will be providing the facilities and personnel to
perform the registrational clinical trials in Balance Disorder – Providing regulatory expertise and access to special regulatory
relationship with the FDA– Committed to funding additional clinical trials estimated
commitment in money and services $30M+– Research collaboration agreement signed 1/22/2013
13www.heliusmedical.com | CSNX: HSM
Milestones and use of Proceeds
• First commercial PoNS (4.0) device design and manufacturing with Ximedica– Complete Phase 1B by Q2 calendar 2014– Complete Phase 2 by Q3, calendar 2014– Complete Phase 3-5 by December 31, 2014
• Clinical Trial for FDA approval in TBI– Interim data from UW pilot November 2014 will instruct
registration trial design– Registration clinical trial by January 30, 2015– Complete trial Q1, 2016– Submit FDA filing Q2, 2016 – Obtain approval Q3, 2016
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Milestones and use of Proceeds (cont.)• Retained Proskauer IP Firm to expand IP development
– The PoNSTM device intellectual property is the subject of U.S. Patent Application 12/348,301 and Provisional Patent Application 61/019,061; 61/020,265
– Maximize claims in US though collaborative relationship with USPTO – Use combination of medical method and PoNS to generate new IP
• Generate Army Deployment Plan– Ensure VA system PT infrastructure is created for maximum deployment
efficiency• Create Physical Therapy Support Network
– Develop partnership with national suppliers by June 2015– Develop certification plan for PTCs by May 2015– Develop home base compliance monitoring structure ready to deploy Q2, 2016
• Obtain CPT reimbursement code for device reimbursement Q1, 2017• Develop International Regulatory Submission Package (Q1, 2015)
– Drive submission to Health Canada on a parallel track to the US submission
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Potential Indications for PoNS Therapy
Multiple Sclerosis
Spinal Cord Injury
Parkinson's Disease
Epilepsy
Anxiety
TBI
Hearing Loss
Stroke
Sleep Disorders
Attention Disorders
Depressive Disorders
Chronic Pain
Alzheimer's disease
$0 $50 $100 $150 $200 $250 $300 $350 $400
$9
$10
$10
$16
$47
$48
$56
$57
$75
$77
$83
$95
$366
140 Million Individuals in North America Alone
Cost to US
$Billions
Dis
ea
se
or
Tra
um
a
Preliminary Data
Theoretical basis
Direct Evidence
17www.heliusmedical.com | CSNX: HSM
Market Opportunity # of existing Patients New Patients/ year
Multiple Sclerosis 1,800,000 10,000
TBI (Sports concussive injury) 5,300,000 1,750 million, 550,000 with
Chronic disability
Parkinson’s 750,000 60,000
Stroke 7,000,000 795,000
Alzheimer’s Disease 5,400,000 1,200,000
Depression 21,000,000 11,000,000
PTSD 15,400,000 8,225,000
ADHD 5,752,000 2,600,000
Chronic Pain 100,000,000 5,000,000
• PoNS device + physical or other therapy potentially treats the symptoms of multiple brain disorders/trauma
• Each Indication requires clinical trial (16 months and $2M of funding)
18www.heliusmedical.com | CSNX: HSM
APPENDIX
Competitive Landscape NHC NeuroSigma
Cyberonics and Others
Cefaly
Annual Sales None None $243M Just approved FDA
Type of Device
Non InvasiveNon Invasive and Minimally Invasive
Invasive: ImplantableForehead Cutaneous
stim.
Approved Indications
None NoneDrug Resistant
EpilepsyMigraine Headache
Units Sold None None 65,000 --
Anticipated Indications
TBI, MS, Parkinson and Stroke
Drug resistant Epilepsy, Post
Traumatic Stress Disorder, Obesity,
Cachexia
Targeted Nerve
Trigeminal Trigeminal Vagus Trigeminal
Product Name PoNS Monarch ? Cefaly
Product Classification
TBD TBD Class III Class II
FDA Cleared No No Yes Yes
Product Classification
Class II TBD Class III Class II
20www.heliusmedical.com | CSNX: HSM
US Medical Technology M&A under $750M
21www.heliusmedical.com | CSNX: HSM
Phil Deschamps offers extensive experience in pharmaceutical and Healthcare commercialization. The depth of his expertise stems from his 28 years in the Health Sciences industry half of which was spent at Bristol Myers Squibb and half on the service side as CEO GSW Worldwide, a leading healthcare commercialization company. In February 2012 he joined MediMedia Health, a marketing services company as CEO. In October 2013 became CEO of Helius Medical Technologies.
Deschamps oversaw MediMedia Health Marketing Services business. He was responsible for the strategic development of the organization, nurturing their clients and developing new non personal Communication products and services for the Healthcare industry
At GSW, Deschamps was President and CEO and was responsible for the GSW Worldwide operations which includes offices in the 15 major markets around the world with a turnover of $160M. He primarily consulted on global marketing and commercialization, new business model development for pharmaceutical, device and diagnostics companies.
Before joining GSW Worldwide Deschamps served as director of neuroscience marketing at Bristol- Myers Squibb (BMS) in Princeton, N.J., where he participated on several pre-launch Global Marketing teams in the neuroscience and pain therapeutic areas. He also held several marketing positions in the neuroscience, pain and metabolic therapeutic areas throughout his career.
Deschamps has a BSc. From the University of Ottawa in Canada.
22www.heliusmedical.com | CSNX: HSM
THE TEAM
Philippe Deschamps, President, Chief Executive Officer and Director
Jonathan Sackier has over 30 years of healthcare experience. Trained in Britain as a surgeon & recruited to the USA in 1989 he helped lead the laparoscopic surgery revolution. As a Professor at George Washington University in Washington, DC, he founded, and funded the Washington Institute of Surgical Endoscopy, a center for education, research, innovation and technology transfer.
He is Visiting Professor of Surgery and Medicine at the University of Virginia where he teaches pro bono and his activities in basic and clinical research funded by multiple grants have led to many publications, chapters and books. He has served multiple journals in editorial or reviewer functions, been involved in medical societies at the highest level and been honored for his work in many countries.
25www.heliusmedical.com | CSNX: HSM
THE TEAM
Jonathan Sackier, Chief Medical Officer
Drs Kaczmarek, Tyler and Danilov founded in 1992, the Tactile Communication & Neurorehabilitation Laboratory (TCNL). It is located at the University of Wisconsin-Madison. TCNL is a research center that uses the experience of many different areas of science to study the theory and application of applied neuroplasticity, the brain’s ability to reorganize in response to new information, needs, and pathways. Their research is aimed at developing solutions for sensory and motor disorders. The center has three core areas that form the backbone of their research: neuromodulation, sensory substitution, and electrotactile stimulation.
They are committed to enhancing the rehabilitation process. They envision a future with a faster and more complete rehabilitation from sensory and motor disorders. They strive to improve existing therapies and develop new ones for conditions, which, in the past, had few or no options. Based on the work of our founder Paul Bach-y-Rita, M.D., the originator of the line of our current research, we believe that neuroplasticity is at the heart of all successful neurorehabilitation.
The PoNS device is a result of their efforts at discovering a means to induce the brains neuroplasiticy to enhance rehabilitative care.
23www.heliusmedical.com | CSNX: HSM
THE TEAM
Kurt Kaczmarek, Mitch Tyler, Yuri DanilovBoard Directors, Inventors of PoNS Technology
Montel Williams earned his media celebrity status as an inspirational Emmy Award winning television personality whom Americans invited into their homes for more than 17 years. He is a decorated former naval officer, inspirational speaker, author, entrepreneur and advocate for patients worldwide.
Mr Williams is a personal user of the PoNS technology and is passionate about bringing this technology to market for the benefits of patients suffering from neurological symptoms
In addition to Helius Medical Technologies, Mr. Williams has several business interest in HealthCare, Renewable Energy and Consumer Products.
24www.heliusmedical.com | CSNX: HSM
THE TEAM
Montel Williams, Spokesperson, Personal User & Shareholder
Helius Medical Technologies, Inc. Suite 1980, 1075 West Georgia StreetVancouver, BC, Canada, V6E 3C9
T: 267-756-7028E: [email protected]: www.heliusmedical.com