annual meeting of shareholders 24 august 2017 - nzx · annual meeting of shareholders ... • close...

AnnualMeetingofShareholders24August2017

PacificEdge2017Presentation

BOARDOFDIRECTORS

GOVERNANCE

BoardofDirectors

Experienceingovernance,finance,cancerresearch,biotechnologyandlifesciences,investmentandbusinessadvisory.

SubsidiaryBoardDirectors

In-countrycommercialexperienceandscientificand/orclinicalexpertise.

ScientificandClinicalAdvisoryBoards

Expertadviceonglobalclinicalneedsandproductapplications;andscientificprogressandclinicalopportunities.

ChrisGallaher IndependentDirectorChairman

DavidBand IndependentDirector

BryanWilliams IndependentDirector

DavidLevison IndependentDirector

AnatoleMasfen IndependentDirector

DavidDarling ExecutiveDirectorandChiefExecutiveOfficer

Slide2


MEETINGAGENDA

• Presentations:

• AddressfromtheChair,ChrisGallaher

• AddressfromtheChiefExecutiveOfficer,DavidDarling

• ShareholderDiscussion

• ResolutionsasperNoticeofMeeting:

• Re-electionofDavidDarlingasaDirector

• Re-electionofBryanWilliamsasaDirector

• AuthorisetheDirectorstofixtheauditor’sremuneration

• GeneralBusiness

• CloseofAnnualMeeting

Slide3


TARGETINGLARGESCALEMARKETS

Slide4


USAREVENUERECOGNITION

• USAgenerates90%ofPacificEdge’srevenue

• Untilnow,hasbeendominatedbytestsrunforCMSpatients

• RecoveryoftherevenuefromthesetestsislargelycontrolledbythecompletionandattainmentoftheLocalCoverageDetermination

• Duetoageofsomeofthesereceivables,aprudentandconservativeapproachwastaken,resultinginabaddebtwritedownandprovisioninFY17accounts

• WellprogressedinprocesstoattainLocalCoverageDetermination

• Movingforward,therewillbeincreasedcustomerdiversityaswegainmorerevenuefromnon-federallyfundedcustomerssuchastheVA,reducingtheexposuretotheCMS

PacificEdgeprovidestesttopatientcoveredbyMedicare

PacificEdgebillingandreimbursementagentsendsinvoicesenttoMedicare

RecordedasrevenueandasareceivableinPacificEdgefinancial

statements

LocalCoverageDetermination

Reimbursementofoutstandingreceivables

Slide5


COMMERCIALTRACTION

6


CHIEFEXECUTIVEOFFICERDavidDarling

Slide7


OURPURPOSEANDSTRATEGYDeliveringInnovativeSolutionsfortheEarlyDetectionandManagementofCancer

• Focusonhaematuriaandurothelialcancer;commercialisingasuiteofCxbladdertests(one-stop-shop)

• TheUnitedStatesistheworld’slargesthealthcaremarketandourprimaryfocus.

• HavecommercialpartnershipsinNewZealandandAustraliaandareestablishingapresenceinSingapore.

• Estimatethatthereareupto5milliontestopportunitiesforCxbladderonpatientswithurothelialcancerinthesemarketseveryyear,withanestimatedtotalmarketsizeofuptoUS$7.5billion.

• Targetinghighgrowth.Fourmainareasofinvestment:People,IntellectualProperty,MarketExpansionandProductDevelopment

Slide8


HAEMATURIAANDUROTHELIALCANCERHaematuriaissymptomaticofbladdercancer

• 7millionpeopleintheUSApresentwithhaematuriaeveryyear

• Clinicalguidelinesrequiretheybeworkedupwithexpensiveandinvasiveprocedures

• Followingtreatmentpatientsarerequiredtobemonitoredevery4-6monthsforuptofiveyearswithexpensiveandinvasiveprocedures

• Thehighrecurrenceratemeansthatmanypatientsaremonitoredfortherestoftheirlives

ThisprovidesPacificEdgewithasignificantmarketopportunityforitsCxbladdersuiteoftests.

Slide9


CXBLADDERSPANSTHECLINICALPATHWAYAWorldFirst

SECO

NDA

RYHEA

LTHCA

RE(Specialisthealth

care

Provider/Urologist/SpecialistCancerC

linic)

FULLEVALUATIONTESTING

DIAGNOSEDWITHBLADDERCANCER

CANCERMANAGEMENTDuetohighrecurrenceofbladder

cancer,patientsundergoregulartestingYearOne:uptosixtimes

YearTwotoFive:uptofourtimes/year

PRIM

ARYHEA

LTHCA

RE

(GeneralPractition

er)

80% 20%

1.5MILLIONPATIENTSWITHHAEMATURIA

PRESENTINGTOHEALTHCAREANNUALLY

REFERRALTOASPECIALIST

UROTHELIALCANCER:NonInvasive,Accurate,Fast,LowCost,HighUtility

CxbladderTriageIn-Market2015/16

CxbladderDetectIn-Market2013/14

CxbladderResolveNZLaunchDec2016USRollout2018

CxbladderMonitorNZLaunchDec2015USLaunchDec2016

Helpphysiciansmonitorbladdercancerinpatients,particularlyfortherecurrenceofbladdercancer

Frontlinetoolforusebyphysiciansintheearlyevaluationofhaematuria(bloodintheurine)

Forusebyurologistsforpatientswhohavebeenreferredforafullworkupdetectsthosewithcancer

Forusebytheurologistinthework-upandmanagementofthepatient.Helpsegregatelowgradetumoursfromhighgradeandlatestagetumours

Slide10


FY17MILESTONESSignificantProgressAchieved

Officiallaunchofbladdercancer.mesite

CxbladderMonitorpresentationatAUA

MTANZAwardwinner

InsurancecoveragewithSovereign

Insurancecoveragewithnib

JointanalysisofKaiserPermanentestudycompletedwithpositiveandcompellingresults

OfficialUSlaunchofCxbladderMonitor

NZLaunchCxbladderResolve

Successful$8mshareplacement

NamedinTIN100TopTenHotEmergingCompanies

ApprovedprovidertoTRICARE

AddedtostandardofcareforWaitemataDHB

APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR

Slide11


FY17FINANCIALS(FOR12MONTHSTO31MARCH2017)62%UpliftinProductSales

Positivegrowthinproductsalesfromnewandexistingcustomers,particularlyinNorthAmerica.

SalesandrevenueexpectedtoprogressinFY18astransformationalcustomerscomeonline

Continuedinvestmentintofourstrategicareas:People,Products,MarketExpansion,IntellectualProperty

Operatingrevenueoutgrowingexpenses

Netoperatingcashflowatasimilarleveltothepreviousyear$(17.9)m

Operatingloss$14.9million(excluding$6.2mofnon-cashitems)

OPERATINGREVENUE

LABORATORYTHROUGHPUTIncludesUserProgrammesandcommercialtests

35%increaseintest

throughputcomparedtothepreviousyear

Sixmonthfinancialreportingperiod

62% increasein operatingrevenue

comparedtothepreviousyear

0

2000

4000

6000

8000

10000

12000

FY14 FY15 FY16 FY171H 2H

0

2

4

6

8

10

FY15 FY16 FY17

NZ$Million

IHOpRevenue 2HOpRevenue TotalRevenue

Inthepastfouryears,operatingrevenuehasgrownfrom$150,000to$8.1million

Slide12


VETERANS ADMINISTRATION

COMPLETED√ SignedFederalSupplySchedule Agreement(Feb2016)andnegotiatedcontractpricefortests(2016)

InProgress Targeting largeVAclinics. AnticipateUserProgrammesfor thelarger keysitesasperotherlargenon-VA customers

TRANSFORMATIONALCUSTOMERSVeteransAdministrationandTRICARE

TRICARE

COMPLETED√

Approved asaproviderandnegotiatedcontractpricefortests(October2016)

InProgress ThePacificEdgeUSsalesteamareleveragingexistingrelationshipswithhighvolumesitesintargeted areas.AnticipateUserProgrammesforthelarger keysitesasperotherlargecustomers

KAISER PERMANENTE

COMPLETED√ Completionof largescaleUserProgrammeinfirsthalfFY17andpositiveanalysiswithcompellingfindings

In Progress InfinalnegotiationswithKaiserPermanenteregardingclinicaluseofCxbladder

OTHERCUSTOMERS

InProgress USsalesteamcontinuingtotargetindividualurologistsandlargeurologypracticestoinitiatenewUser Programmes,andtransitionearlyadoptersintocommercialcustomers.Thefocuswillbeonlargepracticesinacademiccentres

Workwithacademic centresand hospitalstogainacceptanceofCxbladderintotheircarepathways

CENTRES FORMEDICAREANDMEDICAID

InProgress RegulatoryprocesstogainaLocalCoverageDecisionwiththeCMSiswellprogressed

Slide13


OTHERMARKETSNewZealand,Australia,SouthEastAsia

AUSTRALIA • TolmarAustralia- dedicatedurologysalesexecutivesleveragingtheirexistingnetworks

• Targetinglargehospitalsaswellasindividualurologists• ThreeCxbladderproductsnowavailableinmarket

NEWZEALAND • Agreementswithseverallarge publichealthcareproviders toincludeCxbladderinclinicalpathway

• CxbladderundercoverbytwoAustralasianhealthcareinsuranceproviders

SOUTHEASTASIA • CommercialbasenowestablishedinSingaporeincludingdistributionandlogisticsprocesstoallowtestanalysisinNewZealand

• SignedupnewUserProgrammeswithtwolargehospitals.• SigninguptwomoreUserprogramswithlargeSingaporean

hospitals

Slide14


REVENUEOUTLOOKANDDRIVERSFY18RevenueUpliftExpectedInLineWithAnnualTrends

• UnitedStatesremainstheprimaryfocus• NewZealand:ContinuetoencourageuptakebyDHBs• Australia:ConversionofUserProgrammesandgreatersalescoverage• Singapore:GrowUserProgrammebaseandinitiatefirstcommercial

customer

MARKETS

• Increasedproductrangeenteringthemarket,particularlyintheUS• RolloutofCxbladderPredict(launchedinDecember2016)PRODUCTS

• ConversionofUserProgrammestocommercialcustomers• BringKaiserPermanenteonboardascommercialcustomer• BuildcommercialrelationshipsandinitiateUserProgrammeswithtargeted

largescaleVAfacilities• CompletetheregulatoryprocesstogainanLCDforCMS

CUSTOMERS

• EncourageinclusionofCxbladderinStandardofCare• ObtainLocalCoverageDecision(LCD)fromtheCMS• Commercialagreementswithlargescaleorganisations• InitiatenewUserProgrammes• Increasedmarketinginvestment,particularlyintodigitalmedia

SALESCHANNELS

Slide15


PRIORITIESFORFY18

MARKETS

• UnitedStatesremainstheprimaryfocus• NewZealand:ContinuetoencourageuptakebyDHBs• Australia:ConversionofUserProgrammeswithearly

adopters• Singapore:GrowUserProgrammebasewithnewurology

practicesandhospitals

PRODUCTS

• RolloutofCxbladderResolveinAustralia,withsoftlaunchinUSbyyear-end

• LeveragethecombinedpoweroftheCxbladdersuiteacrossthehaematuriaandurologypathwaysaffectingtheStandardofCare

CUSTOMERS

• BringKaiserPermanenteonboardascommercialcustomer• BuildcommercialrelationshipswithtargetedlargescaleVA

facilitiesandurologypracticesthatservicetheactivemilitary• InitiateUserProgrammeswithtargetedVeterans

Administrationsites• CompletetheregulatoryprocessforCentersforMedicare

andMedicaidServices• Transitionearlyadoptersintocommercialcustomers

SALESCHANNELS

• ContinuetoinitiatenewUserProgrammes• Increasedmarketinginvestment,particularlyintodigital

media• Targetinginstitutionalandlargepracticeacademicsitesinthe

US

Slide16


SHAREHOLDERDISCUSSION

Slide17


RESOLUTIONS

RESOLUTION1:ThatDavidDarling,whoretiresbyrotationandiseligibleforre-election,bere-electedasaDirectoroftheCompany

RESOLUTION2:ThatBryanWilliams,whoretiresbyrotationandiseligibleforre-election,bere-electedasaDirectoroftheCompany

RESOLUTION3:ThattheDirectorsoftheCompanybeauthorisedtofixtheauditor'sremunerationfortheensuingyear

Slide18


PROXIESANDVOTING

Wehavereceivedthefollowingvalidvotesandproxies:

PROXIESANDPOSTALVOTES

FOR AGAINST DISCRETIONARY VALIDVOTES/PROXIES

RECEIVED

%OFTOTALISSUEDCAPITAL

Re-electionofDavidDarling(Resolution1)

151,751,04586.06%

23,180,25013.15%

1,393,2360.79%

176,324,531 44.11%

Re-electionofBryanWilliams(Resolution 2)

151,622,65085.96%

23,157,60013.13%

1,614,8490.92%

176,395,099 44.13%

Authorisation tofixtheauditors’remuneration(Resolution3)

174,689,68299.05%

90,1090.05%

1,577,9840.89%

176,357,775 44.12%

Votinginstructionsforthosevotingonlineareavailableat:http://www.linkissuers.co.nz/VirtualAnnualMeeting/OnlinePortalGuide.pdf

Slide19


OTHERBUSINESS

Slide20


www.pacificedge.co.nzwww.cxbladder.comwww.pacificedgedx.com

DavidDarlingChiefExecutiveOfficerPacificEdgeLimitedTel:+6434795802Mobile:+6421797981Email:[email protected]

CLOSEOFTHEMEETINGPresentationsareavailableatwww.pacificedgedx.com


DISCLAIMER

InformationTheinformationinthispresentationisanoverviewanddoesnotcontainallinformationnecessarytomakeaninvestmentdecision.ItisintendedtoconstituteasummaryofcertaininformationrelatingtotheperformanceofPacificEdgeLimited.Theinformationinthispresentationisofageneralnatureanddoesnotpurporttobecomplete.ThispresentationshouldbereadinconjunctionwithPacificEdge'sotherperiodicandcontinuousdisclosureannouncements,whichareavailableatnzx.com.NotfinancialproductadviceThispresentationisforinformationpurposesonlyandisnotfinancialorinvestmentadviceorarecommendationtoacquirePacificEdgesecurities,andhasbeenpreparedwithouttakingintoaccounttheobjectives,financialsituationorneedsofindividuals.PacificEdge,itsdirectors andemployeesdonotgiveormakeanyrecommendationoropinioninrelationtoacquiringordisposingofshares.Inmakinganinvestmentdecision,investorsmustrely ontheirownexaminationofPacificEdge,includingthemeritsandrisksinvolved.Investorsshouldconsultwiththeirownlegal,tax,businessand/orfinancialadvisorsinconnectionwithanyacquisitionofsecurities.FutureperformanceThispresentationcontainscertain'forward-lookingstatements',forexamplestatementsconcerningthedevelopmentandcommercialisationofnewproducts,regulatoryapprovals,customeradoptionandresultsoffutureclinicalstudies.Forward-lookingstatementscangenerallybeidentifiedbytheuseofforward-lookingwordssuchas,'expect','anticipate','likely','intend','could','may','predict','plan','propose','will','believe','forecast','estimate','target','outlook','guidance'andothersimilarexpressions.Theforward-lookingstatementscontainedinthispresentationarenotguaranteesorpredictionsoffutureperformanceandinvolveknownandunknownrisksanduncertaintiesandotherfactors,manyofwhicharebeyondthecontrolofPacificEdgeandmayinvolvesignificantelementsofsubjectivejudgementandassumptionsastofutureeventswhichmayormaynotbecorrect.Therecanbenoassurancethatactualoutcomeswillnotmateriallydifferfromtheseforward-lookingstatements.Anumberofimportantfactorscouldcauseactualresultsorperformancetodiffermateriallyfromtheforward-lookingstatements.Theforward-lookingstatementsarebasedoninformationavailabletoPacificEdgeasatthedateofthispresentation.Exceptasrequiredbylaworregulation(includingtheNZXMainBoardListingRules),PacificEdgeundertakesnoobligationtoprovideanyadditionalorupdatedinformationwhetherasaresultofnewinformation,futureeventsorresultsorotherwise.NorepresentationTothemaximumextentpermittedbylaw,PacificEdgeanditsadvisers,affiliates,relatedbodiescorporate,directors,officers,partners,employeesandagentsmakenorepresentationorwarranty,expressorimplied,astothecurrency,accuracy,reliabilityorcompletenessofinformationinthis presentation.

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annual meeting of shareholders 24 august 2017 - nzx · annual meeting of shareholders ... • close...

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