asx code: lbt | for personal use only · 11/26/2013 · laboratory automation market trends...

ASX code: LBT | www.lbtinnovations.com

Annual General Meeting

Adelaide, 26 November 2013

Lusia Guthrie, CEO For

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LBT Innovations © 2013

Disclaimer This document may contain forward-looking statements that involve risks and uncertainties. Although we believe that the expectations reflected in the forward-looking statements are reasonable at this time, we can give no assurance that these expectations will prove to be correct.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements due to many important factors, risk and uncertainties including, without limitation, risks associated with medical device development and manufacture, risks inherent in the extensive regulatory approval processes mandated by regulatory authorities, delays in clinical trials, future capital needs, general economic uncertainly and other risks detailed from time to time in the Company’s announcements to the ASX.

Moreover, there can be no assurance that others will not independently develop similar products or processes or design around patents owned or licensed by the Company, or that patents owned or licensed by the Company will provide meaningful protection or competitive advantages.

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Agenda 1.  LBT Innovations corporate information

2.  Highlights 2012/13

3.  Laboratory Automation market trends

4.  PREVI Isola

5.  APAS Automated Plate Assessment System

6.  Joint Venture

7.  Outlook for 2013/14

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LBT Innovations summary (ASX:LBT) Australian innovation company, listed on Australian Securities Exchange in 2006 Proven ability to bring microbiology automation products to market Has become a mature business partner for leading global companies Market-driven technology and product development focus Product pipeline established PREVI Isola – LBT’s groundbreaking technology for automated plate streaking:

  Commercialised globally as bioMérieux’s PREVI Isola   Royalty income stream established

APAS – second product under commercialisation:   Based on world class computer vision platform   Automated imaging, analysis interpretation, sorting and reporting of plates   JV secured and in negotiations with global distribution partner

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Corporate information

ASX (listed July 2006) Code: LBT Sector Healthcare Equipment Shares 99.3 million Share price (30 Oct 13) $0.08 Daily trading volume 29,543 (3 month ave) Market cap $7.94 million Net cash (30 Oct 13) $2.15 million 52 week price range 4 – 10c Unlisted Options: •  Exercise price 4.2 – 30c •  Expiry 2017 – 2022 Shares on conversion 2.9 million

Major Shareholders bioMérieux 9.8% LH Guthrie 5.4% Aventeos Investments (i) 4.8% SA Pathology 4.7% B Moran 4.6% R A Finder 4.2% Avanteos Investments (ii) 3.0%

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LBT Innovations vision and target markets Ensure that laboratory science most effectively meets the needs of clinicians and patients Innovation and automation of microbiology testing to: •  Reduce time for laboratory results •  Improve patient and treatment outcomes •  Reduce lab costs and costs per patient •  Address increasing workloads and declining staff •  Optimise use of skilled staff and space Bring microbiology into the 21st century: •  Fully automated processing •  Digital imaging and analysis •  Automated decision support •  Computerised image archiving •  Remote reviews for telemedicine Exploring opportunities for healthcare efficiencies in other disciplines and markets F

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Laboratory automation market trends Clinical laboratory automation hardware and software market Estimated 2010 sales $5.35 billion, forecast growth 7% through 2014 * Market trends •  Growing demand for testing as populations age •  Reduced reimbursement plus hospital and managed care cost-cutting •  Diminishing skilled labour pools as baby boomers retire •  Increased government regulations •  Increasingly sophisticated tests producing greater amounts of data •  Antibiotic resistance and emergence of ‘superbugs’ Key automation drivers •  Laboratories required to run more tests with less skilled labour •  Lower operating costs through laboratory consolidation

* Lab Automation Markets, Kalorama 2nd Edition, 2010

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Microbiology lab automation market Global Microbiology Market •  $6.8 bn market:

2.1 billion plates (pre-poured media PPM) 3.3 billion microbiology tests annually 10% instrument sales ($680m) 90% reagents, leases and service

Microbiology Automation Leaders •  bioMérieux •  Becton Dickinson / Kiestra •  Thermo Fisher Scientific •  Siemens Healthcare / COPAN •  Bruker

37%

29%

11%

9%

14%

Microbiology Market Leaders

bioMerieux

Beckton Dickinson

ThermoFisher

Siemens

Others

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Highlights 2012/13 •  Revenue $4.42million (up 333% from $1.02 million in 2012) •  Profit after tax $0.5 million •  R&D Tax Incentive cash refund $827,000 (received October 2013) •  Cash at 30 June 2013: $0.9 million (cash at 31 October 2013: $2.2 million) •  First product in market: PREVI® Isola

  World’s leading automated culture plate streaking solution   Royalty income stream entering 6th year and expected to grow

•  Second Product being commercialised:   APAS® Automated Plate Assessment System   JV secured with Zurich-based Hettich AG Switzerland   $2 million signing fee plus $4 million towards product development   Additional resources hired to manage APAS product development   Negotiations in progress with JV company and potential distribution partner

•  Government grant to fund further research into computer vision platform

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PREVI Isola and bioMérieux FMLA F

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PREVI Isola

•  Critical front-end bioMérieux Full Microbiology Laboratory Automation (FMLA)

•  Installed in 30 countries across Europe, USA China, Middle East and Asia

•  bioMérieux confident of growth in Asia

•  $10.1 million previously received in milestone payments

•  $2.25 million in royalties received to date

•  Minimum royalty provisions in place for life of agreement and are re-negotiated every 3 years

•  New 3-year minimum royalty provision TBA for 3-year period 2015-2017

bioMérieux myNews, May 2013: PREVI Isola is “the system with the highest productivity per square meter of floor space, the highest number of streaked plates per robotic arm and the lowest cost and the best isolated colonies”

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MicroStreak (PREVI Isola) – bioMérieux deal Milestone Date Value Achieved (AUD) Signing Fee Feb 2007 €2.0 million $3.2 million

Licence Fee Mar 2008 €1.0 million $1.7 million

Licence Fee Sep 2008 €1.0 million $1.8 million

Licence Fee Apr 2010 €2.0 million $3.4 million

Total €6.0 million $10.1 million Royalty Arrangements Minimum Ongoing royalties from use of disposable applicators

Minimum royalty provision to 2028

Expectation to exceed minimums 2013-14

CY 2009 USD240,000 AUD265,500 CY 2010 USD360,000 AUD361,843

CY 2011 USD600,000 AUD565,588

CY 2012 USD600,000 AUD578,486

CY 2013 USD600,000 YTD 9 months AUD474,000

CY 2014 USD600,000 TBD

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APAS automated plate assessment system •  Offer software or integrated automation

solutions •  Digital image capture + analysis technology +

decision support for automated intelligent reading, interpretation and sorting of culture plates

•  Very high quality detection & colony assessment

•  Sorts clinically significant cases fast – true negative and true positive culture plates

•  True negative plates removed from workflow

•  True positive plates prioritised •  Allows microbiologists to progress quickly to

next stage and report results sooner •  Processes images on-site or remotely F

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Joint Venture - Hettich AG Switzerland Zurich-based Hettich AG Switzerland secured as global partner in June 2013

JV company is called Clever Culture Systems AG (CCS), based in Zurich

Swiss company has committed $7.4 million, including $2 million sign-on fee to LBT and $4 million to JV company for product development based in Australia

Hettich to fund the design and manufacture of APAS laboratory instruments

50/50 JV progressing marketing, sales and distribution plans

50:50 partnership will leverage:   Hettich’s automated incubator technology   Hettich’s engineering & manufacturing capabilities   LBT investment in APAS computer vision technology   LBT’s specific market knowledge and understanding of end-users

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Addressable market for APAS Microbiology automation competition is between a limited number of participants

Current participants are focusing on medium to large microbiology laboratories with expensive full laboratory automation systems incorporating automated streaker, automated incubator with imaging, microbiologist review

APAS targets small-medium and large laboratories, offering modular approach as well as other automated incubator systems

Laboratory Type

Plates / Day

Global Laboratories

APAS Bench-top

APAS Auto-incubator

Small < 400 15,000 Medium 400 – 1000 12,000

Large > 1,000 400

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Outlook for 2013/14 •  Expanding sales of PREVI Isola through bioMérieux FMLA strategy

•  Manage the 50/50 JV company to progress sales and distribution plans

•  Continue the development of first commercial APAS products

•  Lay ground for transfer to manufacturing APAS in Europe

•  Submit APAS technology to FDA for regulatory approval in USA

•  Research into line-extension applications for further APAS products

•  Investigate use of computer vision platform in other healthcare settings

LBT’s scope broadens from plate culture plate streaking to cutting-edge computer vision and analysis of culture plates to other healthcare settings

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Lusia Guthrie CEO 300 Flinders Street, Adelaide SA 5000 Phone: +61 (0)8 8227 1555 Fax: +61 (0)8 8223 1775 Email: [email protected] Web: www.lbtinnovations.com


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asx code: lbt | for personal use only · 11/26/2013 · laboratory automation market trends...

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