anteo diagnostics agm presentation / diasource
Post on 12-Apr-2017
5.981 Views
Preview:
TRANSCRIPT
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Anteo Diagnostics Limited (ASX:ADO) Annual General Meeting
9 November 2015
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Meeting Format
1. Introductions
2. Formal Resolutions
3. CEO Report
4. Other Business
5. Meeting Close
2
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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.
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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.
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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.
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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%
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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.
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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.
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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
top related